BDO Flash Alert: Personal Income Tax – Domestic Shopping for the year 2024 (“Shop Dee Mee Khuen”)

On 20^th December 2023, the Thai government has approved an additional personal income tax deduction of Baht 50,000 (inclusive of VAT) for certain purchases of goods and services from 1 January 2024 to 15 February 2024. The purchases must be supported by full form of E-tax invoice or E-receipt under the Value Added Tax (“VAT”) regulations, except if the vendor is a non-VAT registered operator engaged in the business of selling books, electronic books (e-books), or One Tambon One Product Program (“OTOP”) products from shops registered with the Community Development Department. The paper tax invoice or receipt cannot be used for tax deduction purposes.

The tax deduction cannot be claimed if the purchases cover the following goods or services:

• Alcohol, beer, wine and other alcoholic beverages
• Tobacco
• Car, motorcycle, and boat
• Newspapers and magazines (both paper and electronic)
• Public utilities, electricity, telephone bill, internet bill
• Service fees covering period beyond 15 February 2024
• Non-life insurance premiums

BDO Insight:

• The service fee for tour and hotel accommodation expenses are allowed as a tax deduction.
• The name and tax ID number of the taxpayer indicated on the full form of a tax invoice or receipt must be accurate.
• For the purchase of books, electronic books (e-books), or OTOP products from a non-VAT registered shop, the E-receipt must include the following information:

1. The name and surname of the taxpayer
2. The tax ID number of the vendor
3. The name or brand of the vendor
4. The serial number of the book and the relevant receipt
5. The issuance date of the receipt
6. The amount paid on the transaction.
7. The type, name, amount, and price in case the price of the goods is THB 100 or more.

• The e-Tax invoice or e-Receipt must be issued by shops duly approved by the Revenue Department (The list is available here).
• The Baht 50,000 spending is an allowable tax deduction, not a tax refund.  Please see the effective tax benefit below:

Accordingly, if you have a net income of THB 600,000, your top rate is 15%.  For a domestic spending of THB 50,000, your effective tax benefit is THB 7,500.

Issuances related to the tax deduction:

• Ministerial Regulations No. 391 (year 2023) issued under the Revenue Code on tax exemption.