Tax Measures to Revive Tourism will Benefit Pattaya

To promote tourism among Thais, those buying tour programs to travel domestically can use their receipts as tax deductions when filing their personal income tax return to a maximum of Bt15,000. The measure is currently in effect and will last until the end of 2010.

To promote trade fairs, companies joining travel exhibitions both in Thailand and abroad can have their expenses as double tax deductions from their taxable incomes.

Private firms holding training courses and seminars for their employees can apply for all expenses including fees for seminar rooms, guestrooms, transportation, food and related items for a double tax deduction for such paid amounts. The measure covers two accounting periods, starting from January 1 this year until the end of 2011.

Meanwhile, until December 31, 2011, allowable depreciation deduction of assets bought by tourism entrepreneurs, exclusive of vehicles, can be made at 60 per cent of their capital value within the first year of buying equipment and furniture.

For vehicles of no more than 10 seats used in car rental businesses, the depreciation deduction can be in full of the purchase price up to a maximum of Bt1 million.

Insurance companies compensating clients whose businesses were gutted by fire during the recent political unrest can use their real payments for tax deductions, and compensation made to protest-affected entrepreneurs is not to be considered as income.

Mr Pradit said the government will lose around Bt 4 billion in revenue as a result of the tax measures.