Income Tax Exemption for Community Enterprises

On the 17th of January 2023, the Director-General of the Revenue Department issued a notice Relating to Income Tax (No. 432) on income-tax exemption for Community Enterprises. These regulations apply to income received from the 1st of January 2023 until the 31st of December 2025.

A Community Enterprise (CE) can be either an ordinary partnership or a body of non-juristic persons. Under the Community Enterprise Promotion Act 2005, CEs are required to obtain a registration certificate from the Department of Agricultural Extension.

CEs must prepare a financial statement outlining their expenses and earnings within three working days of incurring and/or receiving them. This statement must:

   be in Thai;

   show daily income and expenditure; and

   include the details required by the form annexed to the Notice of Director-General of Revenue Department Relating to Income Tax (No. 161).

Additionally, the registration certificate and financial statements must be kept for at least five years at the CEs location, and be ready for review by Tax Assessment Officers.

The CE must present details of tax-exempt income at the time of filing ordinary income tax returns (under Section 56 and Section 56 bis of the Revenue Code).

If the CE fails to comply with any of the above, they will not be granted income tax exemption for that fiscal year.

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