Somkid Jatusripitak, Deputy Prime Minister with a panel comprising Prasong Poontaneat, the Permanent Secretary of Ministry of Finance, Lavaron Sangsnit, Director-General of Fiscal Policy Office, and Ekniti Nitithanprapas, Director-General of Revenue Department announced those 15 fiscal and monetary measures under the second phase Covid-19 aid to boost up Thai economy directly and indirectly. Ministry of Finance, under the Cabinet’s approval dated 17 Mar 2020 under the first phase and latest approval dated 24 Mar 2020 under the second phase, has proposed and implemented the following measures to alleviate Thais’ financial burdens and increase the business enterprises’ liquidity so that we can weather through this social and economic hardship period.
1 For employees, temporary workforce, freelances who are not covered by the Social Security Office (SSO) and adversely impacted by Covid-19, the 8 measures are
- Income compensation of Bt5,000 per month during April-June 2020 applicable to those mentioned workforce who are directly impacted by the closure of high risk-exposed areas to Covid-19 spread such as entertainment places, cinemas, massage, spa, fitness, other related services. Note that they exclude workforces who are entitled to seek unemployment compensation fund from SSO, government officials, pension fund officials, farmers who are currently subsidized by the government. Krungthai Bank will open its electronic registration through เราไม่ทิ้งกัน.com on 28 March 2020 at 6 pm onwards or contact hotline no. 02 111 1144, pre-requisite documents such as applicant’s personal data, mobile no. and identification no., employer’s relevant data, screening process of the qualifications and supporting documents which is expected to transfer fund through the applicant’s PromptPay ID card numbers or bank account no. within 7 business days.
- Emergency clean loan project for temporary liquidity and support daily lives. Government Saving Bank (GSB) and Bank for Agriculture and Agricultural Cooperatives (BAAC) set asides total standby credit lines of Bt40 billion (GSB Bt20 billion and BAAC Bt20 billion) by providing not exceeding Bt10,000 loan to each applicant with fixed interest rate of not more than 0.10 per cent per month, total loan period of not more than 2.5 years, 6-month grace period for principal and interests, loan application can be submitted no later than 30 December 2020.
- Extra special loan project for temporary liquidity and support those who have monthly income but facing tight liquidity. This type of loan requires collateral. GSB provides total credit line of Bt20 billion, not exceeding Bt50,000 per applicant at fixed interest rate of not more than 0.35 per cent per month, total loan period of not more than 3 years, loan application can be submitted no later than 30 December 2020.
- Low-interest loan project by Office of the Government Pawnshop (OGP) aiming to help poor people who are directly and indirectly impacted by Covid-19. GSB provides total credit line of Bt2 billion to the Ministry of Social Development and Human Security through OGP with fixed interest rate of 0.10 per cent per year and OGP then charges not more than 0.125 per cent per month within loan period of 2 years.
- Upskill knowledge centers by arranging upskill training courses, new careers and corporate social responsibility to those who are adversely impacted by Covid-19 or other interested people.
- Deferment of individual income tax payment from the original 30 June 2020 to the new 31 August 2020
- Increase in insurance premium as tax deductibles from the original cap amount of Bt15,000 to the new cap amount of Bt25,000 while inclusive of life insurance and assurance as tax deductibles not exceeding Bt100,000 with effective from 2020 income tax year.
- Tax exemption for income compensation to medical and public health professionals for 2020 income tax year. This includes (1) compensation in return of potential risks arising from caution, investigation, prevention, control and cure the Covid-19 patients (2) compensation to those capable and experienced health and medical consultation who are appointed by the Ministry of Public Health
2 For business enterpreneurs who are adversely impacted by Covid-19
- Loan aiming to help SMEs which are adversely impacted by Covid-19 such as tour-related business, spa business, transportation-related business (bus,van,taxi,boat,car rent,) guide tour, hotels, apartments, restaurants. SME Bank provides total credit line of Bt10 billion, by providing not exceeding Bt3 million loan to each applicant with fixed interest rate of 3 per cent per year for first two year, total loan period of not more than 5 years, loan application can be submitted no later than 30 December 2020.
- Deferment of corporate income tax to those who are not listed companies as follows
- 2019 accounting period (Por Ngor Dor 50) for cases to be submitted during 1 April 2020 to 30 August 2020 will be postponed to not later than 31 August 2020.
- 2020 accounting period (Por Ngor Dor 51) for cases to be submitted during 1 July 2020 to 29 September 2020 will be postponed to not later than 30 September 2020.
This will increase liquidity by Bt120 billion under Por Ngor Dor 50 and Bt30 billion under PorNgor Dor 51.
- Deferment of all tax-related matters such as the submission and payment of VAT, special business tax
- Extension of excise tax for businesses relating to oil and oil products. Excise Tax Department allows oil businesses to submit tax within 15 days of the following month that moves oil products out the production factories or bonded warehouse. The said extension will apply during April-June 2020.
- Extension of excise tax submission and payment for those entertainment business such as nightclub, disco, pub, bar, cocktail lounge, restuarants with alchohol, massage, horse racing, golfcourse by no later than 15 July 2020.
- Exemption of import duty imposed on supplies, equipments, other related products in relation to treatment or prevention of Covid-19 as announced by the Ministry of Public Health and valid until 30 September 2020.
- Measures in connection with stamp and duty for non-bank financial institutions who provide credit cards, personal loans, retail loans for doing business, hire purchase, leasing and other debt restricting with financial institutions
- (i) Exemption of personal income tax and corporate income tax as a result of the debt set off with creditors.(ii) Exemption of personal income tax, corporate income tax, VAT, special business tax, duty stamp to debtors and creditors as a result of debt restructuring leading to asset transfer, the goods and services sold, and other instruments. (iii) Exemption of personal income tax, corporate income tax, VAT, special business tax, duty stamp to debtors and creditors as a result of the enforcement of mortgaged assets which falls under the stipulated guidelines. (iv) Relaxation of debt written off guidelines for those debt restructuring during 1 January 2020 to 31 December 2021.
- Reduction of the properties mortgage and transfer registration fee under the laws of land and condominiums for debt restructuring as stipulated and the said fees will be 0.01 per cent and valid until 31 December 2021.