TAX NEWS - June 2010

Thailand Tax: Hotel cost tax break for tourists approved

Individual travellers can now deduct up to 15,000 baht in hotel room costs from their personal taxable income as part of a plan to revive tourism.

The tax break, approved by the cabinet yesterday, is effective from today until the end of the year.

The cabinet last week approved another deduction of up to 15,000 baht for individuals who buy domestic tour packages from authorised agents, effective from June 7 until year-end.

The Tourism Council of Thailand (TCT) had requested the additional tax break for hotel rooms, noting that 70-80% of local tourists now made their own travel arrangements and did not use agents.

The government is hoping to stimulate domestic tourism because foreign visitor arrivals have fallen sharply in the wake of political unrest and violence in April and May.

The Joint Public Private Consultative Committee has also approved a TCT proposal to offer two months of training for independent workers in the industry, such as guides and spa attendants.

As well, the Tourism and Sports Ministry will study the inclusion of independent workers in the tourism industry in the Social Security Fund.