TAX NEWS - June 2010

Thai Tax: Hotel tax breaks approved

Thai cabinet yesterday approved a plan to allow consumers to claim hotel room charges as expenses in their personal income tax deductions.

The move is one of a series of measures aimed at helping the tourism industry, which is struggling to recover from the impact of political protests, said deputy government spokesman Vachara Kannikar.

The deductions from personal taxable income, capped at 15,000 baht a year, will be effective until the year-end.

The cabinet last week approved another deduction of up to 15,000 baht for individuals who buy domestic tour packages from authorised agents, also effective until the year-end.In a related development, the cabinet approved 37 million baht in compensation for the Small Business Credit Guarantee Corporation for guaranteeing loans to businesses that were affected by the May riots in Bangkok.

Thai Commerce Ministry, meanwhile, will hold a major trade fair from June 18-25 at Impact Muang Thong Thani to help riot-affected businesses sell goods.

The trade fair will feature discounts of up to 40% and exhibitors will not be charged for booth space.

The ministry expects at least 300 million baht in spending by 500,000 visitors to the event.