According to the draft royal decree, proposed by the Ministry of Finance, corporations or juristic partnerships registered as social enterprises, which are not aimed at benefit sharing, will be exempted from paying income tax.
Individuals who support social enterprises will also benefit from the tax exemption, which will cover up to 100,000 baht per tax year, based on actual expenses as well as investments in social enterprises.
The tax break will be offered after the royal decree comes into effect and will continue until 31 December 2023. The objective is to support the operations of social enterprises, in line with the Social Enterprise Promotion Act 2019.
The Government will lose about 10 million baht from the tax exemption, but society as a whole will benefit from it. For instance, it will promote the operations of social enterprises, both in terms of quantity and quality. It could also help ease social problems, as the private sector will be able to employ those who should receive special promotion.
The Government has a policy to promote social enterprises by encouraging businesses to conduct more activities for the benefit of society, which will help develop communities and ease environmental problems.