Cabinet approves tax measures to revive tourism

BANGKOK, June 8 (TNA) – The Cabinet on Tuesday approved several tax measures to promote tourism in the country in favour of domestic travellers and entrepreneurs, said Deputy Finance Minister Pradit Pattaraprasit.

Mr Pradit said at least five measures were given the green light by the Cabinet for the travel industry.

To promote tourism among Thais, those buying tour programmes to travel domestically can use their receipts as tax deductions when filing their personal income tax return for not more than Bt15,000 (US$460), the measure takes effect from Wednesday 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 all expenses including fees for seminar rooms, guestrooms, transportation, food and related items for 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 made fully of the buying costs, from originally no more than Bt1 million being allowed.

Moreover, insurance companies compensating clients whose businesses were fire-gutted during the recent political unrest can use their real payments for tax deduction, and compensation made to protest-affected entrepreneurs is not considered an income.

However, Mr Pradit said the government will lose revenues of around Bt4 billion as a result of implementation of the tax measures. (TNA)