Bangkok: The Cabinet has announced the approval of draft laws aimed at extending tax benefits for donors contributing to education and sports. This decision marks a significant move to encourage private and public involvement in supporting these crucial sectors.
According to Thai News Agency, Ms. Ploytalay Laksmisangchan, Deputy Spokesperson for the Prime Minister's Office, disclosed that the Cabinet has approved in principle two draft Royal Decrees. These decrees, issued under the Revenue Code concerning tax exemptions, are designed to extend the tax benefits for individuals and companies or juristic partnerships that donate money or assets to educational institutions to support sports. The existing benefits, set to expire on December 31, 2024, will now be extended for an additional three years, from January 1, 2025, to December 31, 2027. The donations must be made through the Revenue Department's e-Donation system.
Ms. Ploytalee further stated that the Ministry of Finance has assessed the potential impact of these measures, estimating a loss of government revenue amounting to approximately 1.6 billion baht per year, or 4.8 billion baht over the three-year extension. The breakdown includes a loss of 1.54 billion baht annually from tax measures supporting education and around 60 million baht per year for supporting sports. Despite the anticipated revenue loss, the measure is expected to facilitate broader participation in national education and sports initiatives while alleviating the government's budgetary constraints.