Government Expands Tax Incentives for Donations to Health and Education

Bangkok: The government is encouraging donations to medical, public health, and education funds, adding 9 foundations, with double tax deductions available through e-Donation. Ms. Lalida Periswiwatana, Deputy Spokesperson for the Prime Minister's Office, revealed that the government, under the leadership of Prime Minister and Minister of Interior Anutin Charnvirakul, is moving forward with promoting private sector and public participation in supporting the development of medical care, public health, and education through tax measures. The Cabinet approved the principle of a draft Royal Decree under the Revenue Code concerning tax exemptions, adding nine new recipient organizations whose donations, made through the Revenue Department's e-Donation system, can be deducted as expenses at twice the amount donated.

According to Thai News Agency, the deputy spokesperson stated that this measure is an extension of the previous tax incentive program that supported donations to 27 medical and public health organizations and foundations. This time, nine more recipient organizations have been added to provide broader support covering medical care, rehabilitation, disability, emergency care, public health, and education. These organizations include: the Dhammikachon Foundation for the Blind in Thailand under Royal Patronage, the Prosthetic Foundation under Her Royal Highness Princess Srinagarindra, the Princess Maha Chakri Sirindhorn Medical Foundation, the Medical Governance Foundation, the Saijai Thai Foundation under Royal Patronage, the Somdej Chao Phraya Hospital Foundation, the National Emergency Medical Foundation, the Foundation for the Promotion of Academic Olympiads and the Development of Science Education Standards, and the Somdej Phra Yuparaj Hospital Foundation.

For tax benefits, individuals can deduct twice the amount of their donation, but when combined with similar deductions, the total deduction cannot exceed 10% of their net income after expenses and other deductions. Companies or legal partnerships can deduct twice the amount as an expense, but this cannot exceed 10% of their net profit before deductions for charitable, public benefit, education, or sports. This measure applies to donations made from the date the Cabinet approved the principle until December 31, 2027.

Ms. Lalida stated that the government views the development of healthcare and education systems as not being solely the responsibility of the government, but rather a collaborative effort of all sectors. This tax measure will help stimulate donations through a transparent and verifiable system, directly benefiting the public, especially low-income individuals, patients, people with disabilities, and vulnerable groups, by providing them with greater access to medical services, equipment, supplies, and educational opportunities.

'This measure aligns with the government's policy of creating opportunities, reducing inequality, and concretely improving the quality of life for citizens by using tax mechanisms as an incentive for society to invest in the health and education of Thai people,' the deputy spokesperson said.