Donation to Support a Political Party
Individual taxpayers with a tax liability of at least THB 100 have the right to choose which political party they would like a portion of their tax payment to support.
Allocating tax money to support a political party does not increase the amount of tax payable or reduce the amount of any tax refund.
Donations to political parties may be made through several channels. These include the Revenue Department, by indicating the contribution when filing the annual personal income tax return; the Election Commission of Thailand, through the Fund for the Development of Political Parties; or by donating directly to a political party.
Setting a maximum donation limit helps create more opportunities for capable and ethical individuals to participate in politics, rather than limiting political participation to wealthy people.
Should this concept be put into wider practice, Thailand would likely have more politicians who genuinely represent the people and work for the public interest.
The key provisions are as follows:
- Thai individuals who donate money to a political party, or provide financial or other property support through a political party’s fundraising activities, may claim a personal income tax deduction equal to the amount donated, up to a combined maximum of THB 10,000 in that tax year.
This provision applies to assessable income earned in 2018 and declared in tax returns filed from 2019 onward.
- Companies or juristic partnerships that donate money to a political party, or provide money, property, or other benefits through a political party’s fundraising activities, may deduct the value of such donations as an expense when calculating net profit for corporate income tax purposes, up to a combined maximum of THB 50,000 in each accounting period.
This provision applies to accounting periods beginning on or after 1 January 2018.
