BDO Tax Alert - Tax returns deadline and VAT rate 7% extended
26 August 2021
With a view to mitigating the impact of the COVID-19 pandemic on taxpayers and to increase taxpayer liquidity, the Thai Ministry of Finance has approved an extension of the deadlines for filing tax returns and allowing the Revenue Department to waive or reduce certain penalties and fines. In addition, on 24 August 2021, the Ministry of Finance announced that the Cabinet has approved the extension of the 7% standard VAT rate (reduced from 10%) for another two years, from 1 October 2021 – 30 September 2023. The 7% rate was due to expire on 30 September 2021.
The deadlines are extended for the electronic filing of the following tax returns: corporate and personal income tax, withholding tax, VAT and Specific Business Tax; there are no deadline extensions for filing hard copies of tax returns. The following table sets out the normal deadlines and the extended deadlines:
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Tax return
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Normal filing deadline
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Extended deadline for electronic filing
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Half-year corporate income tax return (PND 51) for fiscal year 2021
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Those with deadlines between
3 August and 22 September 2021
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By
23 September 2021
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Year-end corporate income tax return (PND 50, 52, 55), financial statement and disclosure form for fiscal year 2020
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Tax return
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Tax filing month
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Extended deadline for electronic filing
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- Withholding tax return (PND 1, 2, 3, 53 and 54)
- VAT return for overseas suppliers (PP 36)
- Specific Business Tax return (PT 40)
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August 2021
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30 September 2021
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September 2021
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29 October 2021
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October 2021
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30 November 2021
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November 2021
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30 December 2021
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Waiver/reduction of penalties and fines
If VAT and Specific Business Tax returns are filed after the extended due date, the Revenue Department will waive the late filing penalty if the taxpayer pays all taxes and surcharges in full. For tax returns that must be filed during the period September to December 2021 and returns that are filed within three months from the extended deadlines, the penalty will be reduced to 2% of the tax due if the taxpayer pays at least 25% of the tax due.
The Revenue Department has also reduced the fine to the lowest value. For example, if the fine does not exceed THB 2,000, it will be reduced to THB 1 and if the fine does not exceed THB 5,000, it will be reduced to THB 2.
Disclaimer: This page contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. No responsibility is accepted for any errors or omissions, howsoever caused, that this publication may contain, or for any losses sustained by any person as a result of reliance on any information contained herein. It is recommended that readers seek professional guidance on any of the matters noted here.