Page 179 - Social Enterprise A New Business Paradigm for Thailand

incentives for entrepreneurs or social investors to register or invest in social enterprises, which
are the core focus of this study?

The research methods include an examination of the legal provisions governing the establishment,

operation, and oversight of various public organizations, a review of the benefits they receive,
and an analysis of official documents published by government agencies, as well as secondary
legislation such as royal decrees, ministerial regulations, departmental announcements, and
other related rules. In total, this amounts to approximately 63 legal instruments. Additionally, the
study involved in-depth interviews with executives from the Office of Social Enterprise Promotion,
social enterprise operators, and leaders of public organizations engaged in social business. It also
included participation in the 2024 Annual Social Enterprise Assembly.

6.1 Non-profit or Non-Revenue-Sharing Organizations

(1) Association

An association is a non-profit or non-revenue-sharing organization established under the Civil and
Commercial Code (CCC) to carry out continuous activities in line with its stated objectives 124 . The
relevant legal provisions are outlined in Sections 78–109 of the CCC. An association’s operations
may benefit the organization itself or serve public interests, as long as they align with its
objectives. This differs from foundations, which by law must operate solely for public benefit or
charitable purposes.

(2) Foundation

A foundation is a non-profit organization with objectives dedicated to charity or public benefit,
established under the CCC, specifically Sections 110–136. Section 110 of the CCC defines a
“foundation” as “assets specifically designated for charitable, public, religious, artistic, scientific,
literary, educational, or other public-benefit purposes, not intended for profit-sharing 125 , and
registered in accordance with the provisions of this Code.” The management of a foundation’s
assets must not generate personal benefit for any individual but must be used solely to fulfill the
foundation’s objectives. If a foundation or association generates income and has not been
designated as a charitable organization or institution under Section 47 (7) (b) of the Revenue

Code 126 , it is required to include its gross income, before any deductions, in calculating its

124 Section 78 of the Civil and Commercial Code
125 Section 110 of the Civil and Commercial Code
126 Section 47 (7) of the Revenue Code stipulates that a taxpayer with assessable income may further deduct the
following donations from taxable income, in an amount equal to the donation made but not exceeding 10 percent
of the income remaining after other deductions:
(a) Donations made to government hospitals and educational institutions;
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