By virtue of Section 5, Section 6 and Section 7 of the Revenue Code on Tax Exemption (No. 795) B.E. 2568, the Revenue Department has recently announced the criteria and conditions for exemptions from income tax, Value Added Tax, Specific Business Tax and stamp duty.
These exemptions apply to donations made to the Thai Red Cross Society or approved medical and public health foundations through the electronic donation system effective from 1 January 2025. The initiative is part of an effort to encourage charitable contributions via secure and transparent digital platforms.
Donations may be made in the form of cash, assets, or goods. In the case of donating assets or goods, the following criteria and conditions must be met:
- Assets Purchased for Donation – if a company or juristic partnership purchases assets specially for donation, there must be supporting evidence of the acquisition of assets indicating the amount and value of such assets. The value indicated in such evidence shall be regarded as the value of the donation expenses.
- Assets from Asset Register – if a company or juristic partnership donates assets recorded in its assets register, the net book value (i.e. the cost after deducting accumulated depreciation or wear and tear) shall be used as the value of the donation.
- Donated Goods – if a company or juristic partnership donates goods, whether the goods were manufactured in-house or purchased for resale, the proven cost value of those goods shall be considered the value of the donation. However, such value must not exceed the remaining goods brought forward, in accordance with Section 65 bis (6) of the Revenue Code.
- Fair Market Value Requirement – the value of assets or goods purchased for donation must not exceed the normal market price, in accordance with Section 65 ter (15) of the Revenue Code.
Furthermore, in accordance with Section 4 of Royal Decree No. 795, the donors who contribute to the Thai Red Cross Society or approved foundations via the electronic donation system may use the system-generated donation records as valid evidence for claiming exemptions from income tax, VAT, Specific Business Tax and stamp duty under Section 4 and 7 of the decree. And those exercising the tax exemption are not required to submit any additional donation documents or evidence to the tax assessment officer.
Donors are advised to contact the Revenue Department for full details regarding eligibility and compliance requirements or consult with Thai tax experts for assistance in filing Thai taxes.