We have put together a list of measures the government have enacted to help individuals and businesses cope with the coronavirus outbreak.
Individuals
- Super Savings Fund (SSF) regulations has been changed so that its investors can now receive an additional tax privilege from a limit of 200,000 baht, to 400,000 baht of annual income.
- Electricity authorities are returning cash deposits on electric meters. The refund depends on the size of the meter, starting at 300 baht for a small residence and up to 6,000 baht for the largest ones.
- A handout of 5,000 baht per month for a period of three months for workers and part-time employees that are not registered with the social security system. The government estimated that there are around 3 million people that could be eligible for the hand out.
- For workers and employees that are part of the social security system, they will receive 50 per cent of their wages for 180 days if their employer went out of business, or for 90 days if their employer was ordered to temporarily close down by the government.
- Personal loan policy with a budget of 40 billion baht at an interest rate of 0.1 per cent per month and without any guarantee needed. The loan limit is 10,000 baht per person, which will be given out by state-owned banks and specialized financial institutions.
- Another 20-billion-baht budget for people who want a loan with a 50,000 baht limit, but with an interest rate of 0.35 per month, with collateral.
- The Department of Social Development and Welfare is accepting pledges with a low-interest rate of 0.125 per cent per month with a budget of 2 billion baht.
- Personal income tax filing is being extended to August.
- Health insurance premiums deduction increased from 15,000 baht to a ceiling of 25,000 baht.
- Tax exemption on risk payments for medical workers.
- Credit cards and cash flow loans where service providers will reduce the minimum payment rate from 10 per cent down to 5 per cent for the rest of 2020 and the whole of 2021, 8 per cent in 2022, and back to 10 per cent in 2023. In addition, the debtor can convert the debt into long-term loans with lower interest.
- Personal loans: commercial banks and specialized financial institutions will postpone the payment of principal and interest for three months. Other service providers can choose to proceed with the postponement of principal and interest payments for three months or reduce the installments by at least 30 per cent of the original installment for six months.
- Hire purchase loans, where loans for motorbikes will be limited at 35,000 baht, and loans for all types of cars will be limited at 250,000 baht.
- Home loans that are not over 3 million baht, and business loans for small and medium-sized enterprises (SMEs), microfinance, and nano-finance that do not exceed 20 million baht: For these measures, institutions will suspend the payment of principal for three months and consider reducing interest according to individual circumstances.
- The minimum installment rate will also be dropped from 10 per cent to 5 per cent in 2020 and 2021, 8 per cent in 2022, and back to 10 per cent in 2023. In addition, debtors can also convert the debt into long-term loans with lower interest.
- The exemption from taxes and fees to support debt restructuring of non-financial creditors such as credit cards, personal loans, micro-loans for careers, provincial retail loans, hire purchase, leasing and other creditors entering into joint debt restructuring agreements with financial institutions are also being implemented. The exemption period will start from January 1, 2020 to December 31, 2021.
Businesses
- Lowered excise tax on aviation fuels from 4.73 baht per litre down to 0.20 baht.
- The Board of Investment (BOI)’s the exemption on corporate income taxes for five to eight years, with a 50 per cent corporate tax deduction for the following five years for companies that invest at least 500 million baht on approved large-scale projects this year.
- BOI’s additional benefits for companies that invest in the grassroots economy. To gain approval, they must submit their applications before December 30. SMEs with annual revenue of less than 500 million baht can also apply for the package.
- BOI’s relaxed investment rules for hotel operators in order to support them during the outbreak period.
- Soft loans worth 150 billion baht, which the Government Savings Bank (GSB) is lending to commercial banks at 0.01 per cent interest rate and commercial banks can then grant loans at 2 per cent to SMEs. Each borrower can take out a loan of no more than 20 million baht.
- A moratorium on principal payments, debt payments extension, and the right to borrow from special financial institutions such as the GSB and the Bank for Agriculture and Agricultural Cooperatives.
- The Social Security Office (SSO) soft loans worth 30 billion baht for SSO-registered entrepreneurs.
- SME debtors can undergo debt restructuring without any stain on their credit history.
- Commercial banks are lowering the minimum payment limit for credit-card holders to 5 per cent from a ceiling of 10 per cent.
- A supportive loan measure with a budget of 10 billion baht. The loan is being offered by the Small and Medium Enterprise Development Bank of Thailand with a limit of 3 million baht per loan with a 3 per cent interest rate in the first two years. The loan period can be no longer than five years. The deadline to apply for the loan is December 30.
- The deadline for corporate income tax payment is being extended from May until the end of August for the annual audit filing, and from August until the end of September for the half-year report.
- Filing of other taxes for affected operators is being extended by three months while the filing of excise tax by businesses within the service sector is extended by one month.
- Extensions for all tax payments that are being collected by the Customs Department for businesses that have to close down because of government orders.
- The filing of excise tax for oil products businesses is being extended to the 15th of the following month for three months.
- The duty on the import of materials and supplies needed for the research, treatment, and prevention against coronavirus will also be exempted until September 30.
- Mortgage registration, transfer, and transaction fees for real estate under the Land Code are now reduced to 0.01 per cent until December 31, 2021 as well.
Economy
- February 5, the Bank of Thailand (BOT)’s Monetary Policy Committee (MPC) members voted unanimously to cut the policy interest rate by 25 basis points down to a historic low of 1 per cent.
- On March 10, the cabinet approved the first relief package which was expected to inject 400 billion baht into the economy which aims to help all sectors.
- March 20, the BOT announced that they have cut the country’s benchmark lending rate down from the already historic low of 1 per cent to an unprecedented rate of 0.75 per cent. Experts expect the rate to go down even further if the outbreak continues to prolong.
- March 24, the cabinet approved the second stimulus package worth 117 billion baht ($3.58 billion) to help employees and business that have been affected by the outbreak.
- March 25, The BOT’s MPC has maintained the country’s benchmark lending rate at 0.75 point. The central bank also launched “Credit Assistance Measures” for non-NPL debtors, which will come into effect on April 1.