Page 205 - Social Enterprise A New Business Paradigm for Thailand

Table 6.12 Legal Benefits Public Organizations Receive from Operating Social Businesses

BOI Investment
Type of Public Organization Tax and Other Benefits Procurement Benefits
Promotion Benefits

(1) Corporate income tax at a reduced rate of 2%–10% of income
Foundation or Association before expenses
(upon dissolution, assets must
(2) Exemption on membership fees, income from private school Not eligible for BOI
be transferred to another
operations, and donations or gifts investment promotion
charitable foundation, Procurement benefits
association, or legal entity, as (3) Foundations or associations designated as public charities are under the government’s benefits
exempt from corporate income tax, and donors (individuals or
applicable) “specific method” for:
entities) are eligible for tax deductions
▪ certified organizations or
(1) No corporate income tax liability Local organizations
foundations for persons
Cooperative (2) Exemption from specific business tax for loans to members or (cooperatives,
with disabilities
other cooperatives. community enterprises,
▪ products from cooperative
(1) Exemption from personal income tax for non-legal-entity social enterprises, or
community enterprises with annual income not exceeding 1.8 stores or agricultural local farmer groups
institutions certified by the
million baht registered with relevant
Community Enterprise Ministry of Agriculture
(2) Reduced corporate income tax rates for community enterprises agencies) are eligible to
with registered capital not exceeding 5 million baht and annual ▪ products from village or receive at least 500,000
income not exceeding 30 million baht subdistrict occupational baht per project through
groups
(1) Right to use the term “social enterprise” BOI-supported
▪ products or services from
(2) Eligibility for assistance from the Social Enterprise Promotion Fund community and social
registered social
(3) Non-profit-distributing social enterprises are exempt from enterprises. development
Social Enterprise corporate income tax collaboration.
(4) Investors are eligible for income tax exemptions on investment
amounts
(5) (5) Can issue and offer shares without SEC approval

- Tax deductions of 1× for charitable and public benefit expenses up Businesses can propose
to 2% of net profit collaborative projects
Company or Registered - Additional 1× deduction for education and sports expenses up to with local organizations
Partnership 2% of net profit to apply for investment
- Double (2×) deductions for certain expenses specifically promoted promotion.
under Revenue Department regulations, up to 10% of net profit.

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