News No. : 4/2007
Date : 21 December 2006
Subject : The Revenue Department gives tax privilege for donations made to flood victims.
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Due to the flood in several areas across provinces, there has been a lot of donation in both commodities and monetary forms, made by individuals and companies. Such donation shall be considered as deductible allowances or expenses for tax purpose given the following conditions. 1. In the case of the individuals, the donation must only made be in monetary forms through a government agency. The granted allowance is equal to the amount actually donated but not exceeding 10% of the income after standard deductions and allowances. This is in accordance with the Ministerial Regulation No. 253 (B.E. 2548) dated 28 March 2005. 2. In the case of the companies, the donation can be made in commodities or monetary forms through a government agency. Such donation can be deducted as expenses for charitable at the amount actually donated but not exceeding 2% of net profits. This is in accordance with Section 65 Ter (3) of the Revenue Code. 3. The agency receiving the donation is required to issue the receipt or invoice which can be used as evidence for claiming either allowance if the donator is the individual or expense if the donator is the company. The receipt or invoice must contain at least the following elements:
Tax identification number of the issuer;
Name or brand of the issuer;
Date of issuance;
Number of issuance;
Name of the donator;
Amount of donation;
The phrase Donation for flood victims This acknowledgement concerns the government agencies and companies which act as donation center, including taxpayers who are eligible for claiming allowances or expenses.
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