Page 185 - Social Enterprise A New Business Paradigm for Thailand

(No. 2), B.E. 2563 (2020), identifies “products from cooperative stores or agricultural institutions
certified by the Ministry of Agriculture and Cooperatives” as among the goods the government

aims to promote or support. Government agencies are allowed to procure these goods using a
specific (non-competitive) procurement method.

2) Community Enterprises
The rise of community enterprises in Thailand marks a shift in economic organization, moving
away from the cooperative model with its formal structure and strict regulations toward a more
flexible approach that aligns more closely with local ways of life. In 2005, the Community

Enterprise Promotion Act, B.E. 2548 (2005), was enacted and later amended by the Community
Enterprise Promotion Act (No. 2), B.E. 2562 (2019). Under this law, a “community enterprise” is
defined as a community-based activity related to the production of goods, the provision of
services, or other undertakings carried out by a group of individuals bound by shared ties and
lifestyles, who come together to pursue such activities, whether or not as a legal entity, to
generate income and promote self-reliance within families, communities, and among
communities.

The law sets out various measures to support community enterprises, including providing

knowledge and assistance in establishing enterprises; conducting research on the use of raw
materials, resources, or local wisdom; and offering training on all aspects of production and
business management to strengthen primary-level community enterprises and enhance their
self-reliance. It also encourages community enterprises to register as legal entities and provides
ongoing support for those that have already achieved a degree of self-reliance, helping them
advance further. Examples include promoting and developing products, offering modern designs
to meet market demands, and conducting research to improve quality, production, management,
and marketing.

2.1) Tax Benefits for Community Enterprises
Community enterprises are income-generating activities within local communities and are

therefore subject to taxation under the Revenue Code. If a community enterprise operates as a
group of individuals or an ordinary partnership, it is subject to personal income tax. However, if
it operates as a company or legal partnership, it is subject to corporate income tax. Since 2009,
the Revenue Department has introduced measures to promote community enterprises by
exempting those organized as ordinary partnerships or non-legal entity groups from personal
income tax, provided their annual income does not exceed 1,800,000 baht for that tax year 135 .
For community enterprises operating as companies or legal partnerships with registered paid-up

135 Ministerial Regulation No. 385 (B.E. 2565) issued under the Revenue Code on Tax Exemptions, dated November
14, 2023.
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