Social enterprises to get tax breaks worth 10m baht
The Cabinet has approved in principle changes to boost tax breaks for social enterprises and people who support them.
A social enterprise is defined as a business or non-profit organisation that applies commercial strategies to maximise financial, social and/or environmental improvement.
The changes to the Revenue Code would exempt corporations or juristic partnerships from paying income tax on funding for social enterprises, including individuals who support social enterprises. The tax exemption will cover funding of up to 100,000 baht per tax year and cover actual expenses as well as investments in social enterprises.
The tax break will be offered until December 31, 2023, to support the operation of social enterprises that benefit society as a whole, in line with the Social Enterprise Promotion Act 2019.
"Though this measure will cost the government about 10 million baht, it will help the operation of social enterprises both in terms of quantity and quality,” government spokesman Anucha Buraphachaisri said on Tuesday.
The tax break could also help the state solve social problems, such as employment for people with special needs, he added. Meanwhile it could boost sustainable community development at the local and national level, said Anucha.