Revenue Department agrees to tourism tax rebates to boost domestic tourism

BANGKOK: -- The Revenue Department has accepted the tourism sector’s proposed tourism tax rebates to boost domestic tourism.

However it slashed the proposed 20,000 baht tax rebates proposed by the Tourism Council of Thailand to 15,000 baht for individual, but increase the tax rebate for corporation by twofold of actual expenditures.

Revenue Department director-general Prasong Poonthanet said the short-term measure to boost domestic tourism proposed by the Tourism Council of Thailand will be forwarded to the new cabinet and the National Council for Peace and Order for approval.

Under the revised tax rebates to boost domestic tourism, he said the proposed tax rebates of 20,000 baht from the individual’s annual personal income tax payment will be slashed to 15,000 baht.

However tax rebates for corporation which hold seminars and meetings in tourist spots, he said they could use hotel bills to deduct their corporate tax by twofold of their actual spending.

He said this short-term measure will result in the department to collect two billion baht less in its annual tax collection.

Earlier the Tourism Council of Thailand proposed the military junta the 20,000 baht tourism tax rebates to promote domestic tourism.

Under such measure, local tourists are allowed to use receipts from their tourism expenditures such as hotel accommodations and tourism service in the country to claim tax rebates at their annual personal income tax payment.

This was said to stimulate local tourism and curb people from touring abroad.

However a survey by Bangkok Poll revealed that such measure will not boost tourism but to benefit high income earners and certain businesses, while the low-income earners get nothing from the measure.

Source: http://englishnews.thaipbs.or.th/revenue-department-agrees-tourism-tax-rebates-boost-domestic-tourism/?utm_source=rss&utm_medium=rss&utm_campaign=revenue-department-agrees-tourism-tax-rebates-boost-domestic-tourism

-- Thai PBS 2014-09-02

What am I missing or reading wrong? Why would a tourist file Thai a income tax in Thailand ... or is somehow Thailand going to foot part of the income tax bill due in the tourist home country?

John, this is for Thai taxpayers and domestic tourism. Believe it or not, Thais go on holiday too.

Anything for us farang who also holiday inside Thailand?

No, guess not.

Anything for us farang who also holiday inside Thailand?

No, guess not.

If you pay tax in Thailand and complete annual tax returns then I would assume you are entitled to claim, regardless of nationality.

John, this is for Thai taxpayers and domestic tourism. Believe it or not, Thais go on holiday too.

Thanks, guess it was the word "domestic" I wasn't seeing.

The guy in the picture looks like Jackie Chan's grand daddy.

Gee, a populist policy, at least for the elite. their holidays will be subsidised by the govt . Who would have thought it? Voodoo economics.

"This was said to stimulate local tourism and curb people from touring abroad."

Nice!

Why not just build a giant wall around the country?

Though i wouldn't be surprised if someone in TAT is already.formulating a plan to do so.

If you already reclaim tax on your fixed rate bank deposits, there's no reason why you shouldn't accumulate receipts throughout the year for all hotels/flights etc and reclaim that tax also, 15,000 is 15,000.

"This was said to stimulate local tourism and curb people from touring abroad."

Nice!

Why not just build a giant wall around the country?

Though i wouldn't be surprised if someone in TAT is already.formulating a plan to do so.

Then advertise it as a tourist attraction for foreign visitors. !

"This was said to stimulate local tourism and curb people from touring abroad."

Nice!

Why not just build a giant wall around the country?

Though i wouldn't be surprised if someone in TAT is already.formulating a plan to do so.

Then advertise it as a tourist attraction for foreign visitors. !

That is funny. Wish I'd thought of it first. Brilliant.

dear kids, we have been robbed and scammed and nearlly killed on the roads here, but the roadside food here is clean AND us tourists get a tax rebate, we just have to come back again for more

When in Pattaya I live close to Sukhumvit road and I see convoy's of Bangkok tourist buses being escorted through town by the highway or tourist police. My wife says these a company holidays for 2 days (probably means conferences). 11 is the most buses I have seen.

So now the company can get back from the tax office twice what it cost.....

That doesn't seem right!

" ... short-term measure will result in the department to collect two billion baht less in its annual tax collection."

Every day the government carries more debt-driven pay raises, subsidies and populist stimulus programs while further reducing government revenues. And yet it is relying on greater GDP growth to advance the economy in 2015. It is almost down to faith and Dusit Surveys that the government's plan for sustained economic recovery will be successful.

Gee, a populist policy, at least for the elite. their holidays will be subsidised by the govt . Who would have thought it? Voodoo economics.

It is funny how different rich and poor look at things.

If a rich guys pays say 30% tax, and suddenly gets a discount so he only has to pay say 25%, then the poor sees him as "subsidised by the government".

If a poor guy already pays 0% tax, and therefore cannot use the mentioned tourism tax rebate, as he is already paying nothing, then he has apparently been cheated.

What am I missing or reading wrong? Why would a tourist file Thai a income tax in Thailand ... or is somehow Thailand going to foot part of the income tax bill due in the tourist home country?

What you are missing, and reading incorrectly, is that the relief is for local (Thai) tourists in their own country.

When in Pattaya I live close to Sukhumvit road and I see convoy's of Bangkok tourist buses being escorted through town by the highway or tourist police. My wife says these a company holidays for 2 days (probably means conferences). 11 is the most buses I have seen.

So now the company can get back from the tax office twice what it cost.....

That doesn't seem right!

No, they will not be getting anything back from the tax office, they will simply be paying less tax than usual. The money flow to the tax office is still a one way street.

Secondly. Since corporate tax is 20% currently, they will save only 40% (2 x 20%) of the total cost of the trip. So if the trip cost say 100 baht, then the company will still effectively pay 60 baht for the trip after tax, (whereas normally they would effectively be paying 80 baht after tax).

Edited September 3, 201411 yr by monkeycountry

"This was said to stimulate local tourism and curb people from touring abroad." When Thais return from abroad they are counted in the figures of tourists visiting the country, so now TAT are going to have think of another dodgy way to manipulate the numbers. How stressful it is in the life of a TAT executive.

John, this is for Thai taxpayers and domestic tourism. Believe it or not, Thais go on holiday too.

Like indefinite holidaying in Dubai...

You know you really have to ask yourself what do the authorities know that we don't

Thailand is such a wonderful tourist destination that the only way to get locals to stay home is to pay them ????