Page 181 - Social Enterprise A New Business Paradigm for Thailand

they can produce. As a result, the foundation continues to seek additional sources of support to sustain
its work in the long term.

Source: Based on insights from the interview.

Table 6.1 Tax Obligations of Foundations or Associations
Tax Obligations Tax Exemptions
Corporate income tax under Section 40 (1)–(7) at a Income tax exemption on registration fees,
rate of 10% of gross income before expenses, such membership fees, donations or gifts, and income
as income from sales of goods and services, from private school operations run by the
interest, dividends, rent, etc. foundation or association
Corporate income tax under Section 40 (8) at a rate
of 2% of gross income before expenses, such as VAT exemption on sales of goods or services for
income from commercial, agricultural, industrial, religious or charitable purposes
transport activities, real estate sales, or other
businesses
VAT exemption on donated goods provided to
Value-added tax, specific business tax not
exempted by law government hospitals, educational institutions,
and other certified charitable organizations

Foundations or associations designated by the Ministry of Finance as charitable organizations or
institutions under Section 47 (7) (b) of the Revenue Code are exempt from corporate income tax
under the Revenue Code, regardless of the type of income they generate. In addition, individuals
or legal entities that donate money or assets to such foundations or associations are entitled to
claim tax deductions (see Table 6.2).

Table 6.2
Tax Obligations of Foundations or Associations Designated as Charitable Organizations or Institutions

Tax Exemptions Granted to Designated Tax Deductions Available to Donors
Foundations or Associations
Individual donors can deduct donations of up to
10% when calculating net taxable income

Companies or legal partnerships can deduct
donations of money or assets, up to 2% of net
Exemption from corporate income tax under the profit, as expenses when calculating net profit
Revenue Code, regardless of the type of income
generated
Business operators donating goods are exempt
from value-added tax

However, more than 90% of foundations are not designated as charitable organizations or
institutions and thus remain subject to corporate income tax. As of April 3, 2023, it was estimated
that there were approximately 14,330 foundations and 18,506 associations across the country.

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