Worawit Thawinthikakul
Counsel
During this Covid-19 outbreak, both individuals and corporations are affected by the working environment in many ways, including standard operation and market production. To resume business operations, the corporation needs to procure reliable Covid-19 vaccines for its employees and workers.
After providing appropriate vaccination to the employees, the corporation is allowed to recognize the vaccination cost as a tax-deductible expense for Corporate Income Tax purposes.
For Personal income tax purposes, the medical treatment subsidized by the corporation for its employees is not regarded as salary or other benefits related to the employment under Section 40 (1) of the Thai Revenue Code as prescribed in the Ministerial Regulation No. 126 (B.E. 2509) (“MR126”).
However, there is a private tax ruling no. 0702/2561 dated 9th March 2018 stated that the vaccination cost is not considered medical treatment under MR126.
In this regard, the Covid-19 vaccination provided to those employees is regarded as another benefit related to the employment under Section 40(1), which is required to include in their Personal Income tax calculation.