Page 195 - Social Enterprise A New Business Paradigm for Thailand

(1) Financial assistance from the Fund under Section 48 (1), (2), and (5)
(2) Tax benefits under the Revenue Code

(3) Benefits under government procurement and supplies management measures, as
provided under the law governing public procurement and supplies management
(4) Benefits under other applicable laws

These supports are subject to the criteria, procedures, and conditions determined by the Cabinet
based on recommendations from the Social Enterprise Promotion Committee.

As noted earlier, the Social Enterprise Promotion Fund is currently not in a position to provide
financial assistance to social enterprises. This section therefore focuses solely on measures
related to tax incentives, government procurement benefits, and other legal advantages.

5.1) Tax Benefits for Social Enterprises under the Revenue Code

Relevant laws include Royal Decree No. 735 (B.E. 2564) 157 (2021) issued under the Revenue Code
on Tax Exemptions and Revenue Department Announcement No. 38, which sets out the criteria,
procedures, and conditions for tax exemptions for social enterprises and individuals supporting
social enterprise activities (B.E. 2564) 158 (2021).

Eligible recipients of tax benefits include:

(1) Social enterprises registered with the Office of Social Enterprise Promotion (OSEP)

• They must be legal entities, such as registered partnerships (ordinary registered
partnerships, limited partnerships) or companies (limited companies, public limited
companies). Other types of legal entities, such as foundations or associations, are not
eligible under this law (though they may qualify for other tax benefits under the Revenue
Code). Cooperatives, as legal entities, are already exempt from corporate income tax.

• They must comply with the criteria, procedures, and conditions under Section 10 of the

Royal Decree, including formally notifying the Director-General of the Revenue
Department of their intention to receive tax benefits.

(1.1) Tax Responsibilities of Non-Profit-Distributing Social Enterprises

Non-profit-distributing social enterprises are exempt from corporate income tax. Even if
they generate profits during the accounting year, they are not liable for corporate income

157 Royal Decree issued under the Revenue Code on Tax Exemption (No. 735), B.E. 2564 (2021), given on November
7, 2021.
158 Announcement of the Director-General of the Revenue Department (No. 38) on Prescribing Rules, Procedures,
and Conditions for Tax Exemption for Social Enterprise Activities and Persons Supporting Social Enterprise Activities,
announced on December 27, B.E. 2564 (2021), to be effective from November 9, B.E. 2564 (2021) onward.
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