Government to allow domestic travel expense as tax deduction in 2018

 

 

BANGKOK, 18th December 2017 (NNT) – The government is planning to allow taxpayers to use traveling expenses to less touristic destinations as a personal tax deduction in 2018. 

Finance Minister Apisak Tantivorawong said today that he is going to propose that Cabinet consider a new personal income tax deduction measure for people who visit non-major cities during all of next year. 

Mr. Apisak said that traveling expenses to be allowed as tax deductible expenses include accommodation and transport costs for a combined amount of up to 15,000 baht proven with receipts. 

?He added that no tax receipts will be required for this scheme as most expenses are likely to be paid to small operators in smaller cities. 

The Finance Minister said that the Tourism Authority of Thailand will announce a list of the provinces to be eligible for this program later. 

Mr. Apisak added that the proposed scheme is based on the wish of the Board of Investment of Thailand to further boost investment and attract more operators to seek state incentives.

 

-- nnt 2017-12-18

Yes! That´s right. Another "not so well thought" plan and rule. I assume that the tax deduction on travel expensies, is for people with the need to travel for work.

So, if you work with farm equipment and need to ravel to smaller cities in Isaan then you can make tax deduction. If you sell a new product that is going to have it´s market in Phuket, Pattaya or Bangkok? Yep, then you are just all out of luck! No tax deduction for you.

3 hours ago, Get Real said:

I assume that the tax deduction on travel expensies, is for people with the need to travel for work.

 

The headline says:

 

"Government to allow domestic travel expense as tax deduction in 2018".

4 minutes ago, blackcab said:

 

The headline says:

 

"Government to allow domestic travel expense as tax deduction in 2018".

So, according to you it is inpossible to have to travel inside a country for doing your work???

I am living on earth, and there it´s possible. What about you?

Edited December 18, 20178 yr by Get Real

Quick, everyone! On the next train (if there is one) to enchanting places like Uthai Thani, Samut Songkhram, Nong Bua Lamphu or Mukdahan and let's enjoy their enormous cultural and natural sights!

3 minutes ago, Get Real said:

So, according to you it is inpossible to have to travel inside a country for doing your work???

I am living on earth, and there it´s possible. What about you?

 

I'm sorry but I don't understand you. I read the article and it seemed to me that it was directed at domestic travellers, which I thought was rather good.

 

The article talks about allowing expenses to be tax deductible. Businesses can already deduct valid invoices/receipts as a business expense and also reclaim VAT (if they are VAT registeted).

 

I really don't understand your point.

This program is targeted at individual leisure travel, allowing a deduction for up to 15,000 baht of domestic travel and accommodation against 2018 Personal Income Tax, as long as it is to as-yet-to-be-designated "non-major cities".  It has nothing to do with business travel, which as you state, is already a deductible business expense within certain limits.

4 hours ago, blackcab said:

 

I'm sorry but I don't understand you. I read the article and it seemed to me that it was directed at domestic travellers, which I thought was rather good.

 

The article talks about allowing expenses to be tax deductible. Businesses can already deduct valid invoices/receipts as a business expense and also reclaim VAT (if they are VAT registeted).

 

I really don't understand your point.

Some can't see anything, goes along with the not so well thought out replies. 

Edited December 18, 20178 yr by Artisi

Seems a good way to stimulate domestic tourism to me.

 

I often go to less well known places as I've done the usual tourist traps loads of times and I prefer to avoid the buses full of Chinese. I'll be able to use this tax deduction if it goes ahead.

 

32 minutes ago, JonnyF said:

Seems a good way to stimulate domestic tourism to me.

But doesn't specify domestic tourism, only that travel be to "less touristic destinations."  So maybe visit family or friends in Chiang Rai and get a tax deduction. The intended effect would be the same as a domestic tourist trip with regard to spending that otherwise might not happen.

But this bothers me:

9 hours ago, webfact said:

no tax receipts will be required for this scheme as most expenses are likely to be paid to small operators in smaller cities.

The good news: entire trip can be safely faked

The bad news: small operators who do benefit by travel under this provision won't be paying any taxes as there's no documentation to cross-check revenues.

The government potentially loses net tax revenues. 

2 minutes ago, Srikcir said:

 

But doesn't specify domestic tourism, only that travel be to "less touristic destinations."  So maybe visit family or friends in Chiang Rai and get a tax deduction. The intended effect would be the same as a domestic tourist trip with regard to spending that otherwise might not happen.

But this bothers me:

The good news: entire trip can be safely faked

The bad news: small operators who do benefit by travel under this provision won't be paying any taxes as there's no documentation to cross-check revenues.

The government potentially loses net tax revenues. 

Surely it's domestic tourism, you're not going to get a tax break for going to Hong Kong.

 

In terms of tax receipts, it says a receipt is sufficient as opposed to a full tax receipt/invoice. As you know, there is a difference between the two and often small businesses don't give full tax invoices or it takes up to an hour of waiting to get one.

 

If the government loses tax revenue but small businesses in less touristy places get increased revenue then I see that as a good thing. Essentially the small business gains, I gain, and the government gets less tax. Considering where most of that tax goes i.e. not where it's supposed to, that's win win. 

3 minutes ago, JonnyF said:

it says a receipt is sufficient as opposed to a full tax receipt/invoice.

It says, "no tax receipts will be required." 

4 minutes ago, JonnyF said:

If the government loses tax revenue but small businesses in less touristy places get increased revenue then I see that as a good thing.

I said "net tax revenue." That's the difference between the income tax revenue loss from additional deductions and income tax revenue gain from business revenues. If the difference is negative, that's a net loss to the Thai treasury - a loss paid by typically debt.

The stated intent of this scheme was to "boost investment." It would be financially irresponsible and/or negligent for the government to offer treasury paid incentives with no equal or better recovery incentive cost to the treasury.

 

2 minutes ago, Srikcir said:

It says, "no tax receipts will be required." 

I said "net tax revenue." That's the difference between the income tax revenue loss from additional deductions and income tax revenue gain from business revenues. If the difference is negative, that's a net loss to the Thai treasury - a loss paid by typically debt.

The stated intent of this scheme was to "boost investment." It would be financially irresponsible and/or negligent for the government to offer treasury paid incentives with no equal or better recovery incentive cost to the treasury.

 

Yes, "no tax receipts will be required". It also says "combined amount of up to 15,000 baht proven with receipts". That sounds to me like a normal receipt as opposed to a full tax invoice. I assume you know the difference between the two?

 

It may well be a loss to the treasury and a gain for the small businesses and tourists. I see that as a good thing. Money in the pocket of the average Thai as opposed to the current Junta is a good thing. Or maybe you'd prefer to see the small businesses get less income and the Junta have more of their cash to play with? They could order some more Chinese submarines and Richard Mille watches. That would be awesome.