Mr. Arkhom Termpittayapaisith, Minister of Finance, announced that on December 20, 2022, the Cabinet approved and acknowledged the implementation of measures and projects from government agencies and state enterprises under the Ministry of Finance and related agencies to provide a New Year gift for the year 2023 to the public. Among the tax and fee measures, there are 5 initiatives:

1. "Shop Smart, Get Tax Deductions 2023" Initiative allows individuals to deduct expenses for purchasing goods or services up to 40,000 THB for purchases made between January 1 and February 15, 2023, based on actual payments.

1) For purchases of goods or services not exceeding 30,000 THB, a full tax invoice must be issued in either paper or electronic format.

2) For purchases of goods or services not exceeding 10,000 THB, a full tax invoice must be issued electronically through the e-Tax Invoice & e-Receipt system of the Revenue Department only.

This does not include certain goods and services such as the purchase of alcohol, beer, wine, tobacco, vehicles, newspapers, magazines, travel services, hotel accommodations, utilities, water, electricity, telephone services, internet services, and services under long-term agreements (which started before January 1, 2023, or ended after February 15, 2023, even if payment was made during the measure period) and property insurance premiums. The criteria, methods, and other conditions will be as specified by the Director-General of the Revenue Department.

 

2. Property Tax Reduction Measure for 2023 provides a 15% reduction on the calculated property tax for the tax year 2023.

For example: If a property valued at 1 million THB is used for business purposes, such as a grocery store, hair salon, or restaurant, the normal tax burden would be 3,000 THB. However, with the property tax reduction measure, the tax would be reduced by 450 THB, leaving a payable tax of 2,550 THB.

In cases where the property already receives a 50% tax reduction, such as power plants or dams, the 15% reduction will apply to the tax amount after the 50% reduction.

However, properties that already receive a 90% tax reduction, such as zoos, amusement parks, or sports facilities, will not receive any additional reductions under the property tax reduction measure.

3. Reduction of Registration Fees for Residential Properties in 2023 reduces the property transfer registration fee from 2% to 1% and the mortgage registration fee from 1% to 0.01% (for simultaneous transfer and mortgage) for residential properties, including single-family homes, duplexes, townhouses, commercial buildings, and condominiums (both new and second-hand) with a purchase price and appraised value not exceeding 3 million THB and a mortgage amount not exceeding 3 million THB per contract, excluding cases of partial sales, effective from the date the law comes into force until December 31, 2023.

4. Reduction of Excise Tax Rates for Jet Fuel Used for Domestic Aircraft reduces the tax rate on jet fuel used for domestic flights from 4.726 THB per liter to 0.20 THB per liter, effective from January 1, 2023, to June 30, 2023.

5. Exemption from License Fees for Selling Alcohol, Tobacco, and Playing Cards under the Excise Tax Act of 2017 grants exemption from license fees for Type 1 and Type 2 licenses for operators wishing to continue business at the same establishment with the same license type, applying from January 1, 2023, to December 31, 2023.