Tax Exemption on the Asset Warehousing Program responding to Covid-19

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Taxation

On 18 May 2021, the Cabinet approved tax benefits for the transfer of collateral to pay off debt under asset warehousing program according to the Emergency Decree on provisions of assistance and recovery for entrepreneurs affected by COVID-19 Pandemic B.E. 2564 (A.D. 2021) (the “Emergency Decree”).

In this regard, this tax measures shall exempt tax liability arising from the implementation of asset warehousing program for debtor that has collateral assets with a financial institution.

The scope of tax exemption
          ➢ Personal Income Tax (“PIT”) and Corporate Income Tax (“CIT”) shall be exempted for qualified debtors of financial institutions for income derived from exemption of the obligation of financial institutions.
          ➢ PIT, CIT, VAT, specific business tax, and stamp duty shall be exempted for a qualified debtor of a financial institution for the transfer of assets, sale of goods, and an instrument.

Exemptions will be in accordance with the rules, procedures, and conditions announced by the Director-General of the Revenue Department.

 

Legal Insight Vol. June 2021 of Bangkok Global Law 

The PDF file can be downloaded via the link as set below. 

Tax Exemption on the Asset Warehousing Program responding to Covid-19_Bangkok Global Law