Thailand's Cabinet has approved in principle a draft Royal Decree that would extend and enhance tax measures for Social Enterprises, including permanent tax benefits for supporters, higher deductions for donations to the Social Enterprise Promotion Fund, and relaxed notification requirements.
Thailand’s Cabinet approved in principle a draft Royal Decree under the Revenue Code at its meeting on 21 July 2026, revising tax measures supporting Social Enterprises through amendments to Royal Decree (No. 735) B.E. 2564 (2021).
According to Press Release No. PR 17/2026, issued on 21 July 2026, the proposed amendments are designed to strengthen tax support for Social Enterprises and broaden access to existing incentives.
The Revenue Department said the measures reflect the government’s commitment to supporting organisations that address social challenges while contributing to Thailand’s progress towards the United Nations Sustainable Development Goals (SDGs).
Permanent tax deduction for corporate supporters
Under the draft Royal Decree, corporate entities that provide money or property to support Social Enterprises will continue to be entitled to a 100% tax deduction (equal to the amount contributed).
The proposal removes the previous 31 December 2023 expiry date, making the incentive available on an ongoing basis rather than for a limited period.
New tax benefit for individual donors
The draft also introduces a new incentive for individual taxpayers.
Individuals who make monetary contributions to support Social Enterprises will be eligible to claim a 100% tax deduction, with no expiry date attached to the relief.
This represents a significant expansion of the existing framework by extending tax support beyond corporate contributors.
Enhanced deduction for donations to the Social Enterprise Promotion Fund
The Cabinet also approved an enhanced incentive for donations to the Social Enterprise Promotion Fund.
Under the proposal, deductions for donations of money or property to the Fund will increase from 100% to 200% for donations made between 1 January 2024 and 31 December 2028.
To qualify for the tax benefits available to corporate supporters, individual supporters and donors to the Fund, all contributions must be made through the Revenue Department’s electronic donation (e-Donation) system.
Property transfer tax exemptions extended indefinitely
The draft Royal Decree also removes the expiry date for tax exemptions relating to qualifying property transfers.
The exemptions from:
- Personal income tax;
- Corporate income tax;
- Value added tax (VAT);
- Specific business tax; and
- Stamp duty
will continue indefinitely for individuals, companies and juristic partnerships transferring property to Social Enterprises or donating property to the Social Enterprise Promotion Fund through the e-Donation system.
Previously, these exemptions were scheduled to expire on 31 December 2023.
More flexible notification requirements
The proposal also eases administrative requirements for Social Enterprises seeking tax incentives.
Under the revised rules, Social Enterprises will be permitted to notify the Director-General of the Revenue Department of their intention to claim tax incentives after the statutory filing deadline.
However, both the Social Enterprise and its supporters will become eligible for the tax benefits only from the accounting period or tax year following the period in which the notification is submitted.
Investment incentive rules to be relaxed
Revenue Department Director-General Somsak Anantawat said that, once the Royal Decree comes into force, the Department will amend Director-General’s Notification No. 38 to relax the conditions for investment-related tax deductions.
Currently, investors claiming deductions for investments in shares or partnership interests used to establish or increase the capital of a Social Enterprise must hold those investments indefinitely.
Under the revised rules, investors will instead be required to retain their shares or partnership interests for at least 10 years from the date of investment.
The amendment will also apply retrospectively to qualifying investments made before the new Royal Decree takes effect.
Supporting long-term social development
Commenting on the proposal, Director-General Somsak Anantawat said the Revenue Department recognises the important role Social Enterprises play in addressing social challenges and advancing Thailand’s sustainable development objectives.
He said the revised measures are intended to ensure that government support for Social Enterprises is broader, more comprehensive and available on a long-term basis by expanding eligibility, enhancing incentives and removing time limits on key tax benefits.
