Thai Cabinet approves Measures to Ease Economic Impact of COVID-19
The Thai government has approved Phase Two of a series of financial and fiscal relief measures to mitigate the negative economic impact on employers and employees in the sectors most affected by the outbreak of COVID-19
To mitigate the negative economic impact on employers and employees in the sectors most affected by the outbreak of COVID-19, the Thai government has approved Phase Two of a series of financial and fiscal relief measures.
The measures, approved by the Cabinet on 24 March 2020, are as follows:
1. Relief measures for temporary and independent workers
1.1 Income compensation of 5,000 baht per month for three months for some 3 million workers not covered by the Social Security Fund (SSF), while those under the SSF will get increased unemployment compensation of up to 50% of salaries. The income compensation is applicable to businesses that were ordered to close because of the COVID-19 outbreak, such as sporting venues, theatres, massage parlors, spas, and gyms;
1.2 The issuance of a 10,000-baht emergency loan per person at 0.1% monthly interest with no collateral for loans of up to two years and six months. Individuals may file for the emergency loan until 30 December 2020. The Government Savings Bank and the Bank for Agriculture and Agricultural Cooperatives will provide a collective credit limit of 40,000 million baht;
1.3 The issuance of a 50,000-baht special loan per person at 0.35% monthly interest with collateral for loans of up to three years. Individuals may file for the special loan until 30 December 2020. The Government Savings Bank will provide a credit limit of 20,000 million baht
1.4 Lowering the interest rate of state-owned pawnshops of 0.125% a month for two years;
1.5 Training and skills enhancement activities for workers affected by the COVID-19 outbreak;
1.6 The extension of personal income tax filing deadline from 30 June 2020 to 31 August 2020;
1.7 Increase deduction of health insurance premiums from 15,000 baht to 25,000 baht starting from the 2020 tax year;
1.8 Personal income tax exemption as compensation for medical and public health personnel in the frontline of combating the COVID-19 outbreak.
2. Relief measures for business operators
2.1 The issuance of loans of up to 3 million baht for SMEs at a 3% interest rate in the first two years for loans of up to five years. Businesses may file for this loan until 30 December 2020. This measure is for businesses affected by the outbreak of COVID-19, particularly those in the tourism sector, including buses, hotels, and restaurants;
2.2 The extension of corporate income tax filing to 31 August 2020 (Por Ngor Dor 50) and 30 September 2020 (Por Ngor Dor 51);
2.3 The extension of filing of other taxes for affected operators;
2.4 The extension of filing of excise tax for oil products operators extended to the 15th of the following month for three months (April-June 2020);
2.5 The extension of deadline for filing tax returns and paying taxes for businesses in the service sector affected by orders to close business to prevent the spread of COVID-19, such as restaurants, bars, and nightclubs;
2.6 The exemption of import duty for products related to the prevention and treatment of COVID-19 until 30 September 2020;
2.7 The exemption of taxes and fee cuts for debt restructuring with non-financial institution creditors.