Songkran travel tax rebates: How does it work?

[bubba]

I have seen all the news stories regarding this for domestic hotels and dining, if you can get a VAT receipt. Sometimes they are referred to as 'rebates' and sometimes 'deductions'.

Does anyone actually know which is the case and how this works?

[joy16]

Expenses from domestic hotels and dining which have tax invoices can use to be tax deduction when you submit pnd.90/91 early next year.

[KhunBENQ]

As I understood the expenses can be deducted from your income in Thailand for tax declaration (as joy16 writes the "90/91" forms).

If you don't work/have income/pay tax in Thailand then it's useless for you.

I go to revenue yearly just to get the tax on interest back.

So I could also do nothing with this.

As a high percentage of Thai people esp. the rural population does not pay tax anyway it's useless for them too.

And who of those goes out for dining or does regular tourism (hotel etc.).

The thing is a present to the middle and upper income class.

Edited April 4, 2016 by KhunBENQ

[bubba]

Thanks for that, Joy. In various sources, I had seen this referred to as a deduction, a rebate, and in one place it was even called a tax credit. Lost in translation I suppose. As you say, it does indeed seem like a deduction.

[SantiSuk]

Just another gimme for the better off? Most ordinary people in Thailand don't pay tax. Generallisimo rewarding his yellow shirt persuasion - same same as what Tory government nments do in the UK but with much less subtlety!

It would have been simpler to reduce sales tax for a few days but the great unwashed would have got a fair slice of that action, so presumably never on the cards.

Where to I check in for attitude adjustment.☺

[KhunBENQ]

Where to I check in for attitude adjustment.☺

Is there voluntary check in

[bubba]

As I understood the expenses can be deducted from your income in Thailand for tax declaration (as joy16 writes the "90/91" forms).

If you don't work/have income/pay tax in Thailand then it's useless for you.

I go to revenue yearly just to get the tax on interest back.

So I could also do nothing with this.

As a high percentage of Thai people esp. the rural population does not pay tax anyway it's useless for them too.

And who of those goes out for dining or does regular tourism (hotel etc.).

The thing is a present to the middle and upper income class.

While this may sound "trickle downish", there is some benefit for those in lower income brackets who run small businesses and may not be utilising the tax deduction. If this really does stimulate people to get out and do domestic travel (and rather than foreign travel), many of those baht will be spent at mom and pop restaurants and services, regardless of whether they have a VAT registration.

[SOUTHERNSTAR]

As I understood the expenses can be deducted from your income in Thailand for tax declaration (as joy16 writes the "90/91" forms).

If you don't work/have income/pay tax in Thailand then it's useless for you.

I go to revenue yearly just to get the tax on interest back.

So I could also do nothing with this.

As a high percentage of Thai people esp. the rural population does not pay tax anyway it's useless for them too.

And who of those goes out for dining or does regular tourism (hotel etc.).

The thing is a present to the middle and upper income class.

While this may sound "trickle downish", there is some benefit for those in lower income brackets who run small businesses and may not be utilising the tax deduction. If this really does stimulate people to get out and do domestic travel (and rather than foreign travel), many of those baht will be spent at mom and pop restaurants and services, regardless of whether they have a VAT registration.

The problem is that there are only about 400 000 Thai's that pay tax (there are more registered to pay tax but many don't pay tax because there income is too low). So now you are limiting the benefits to less than 1% of the population. The next problem is that the hi so's like to go to Europe and Japan for holidays and care less about the meager tax rebate. Why don't they waiver VAT on certain items manufactured in Thailand for a certain time period. This will benefit more people both on the manufacturing side and on the consumer side.

[phil2407]

So does that mean that if for example my friend from outside Thailand comes visit me and asks for VAT receipt they can claim all the VAT back? And guessing at the airport before departure for all hotel stays shopping etc

[bubba]

No, Phil. This is only about claiming a Thai income tax deduction for hotel and restaurants during the Songkran holiday period. To do that, it must be an official VAT receipt with your name on it.