Today, the Cabinet approved enhanced tax measures supporting social enterprises by increasing tax deduction rights and permanently expanding benefits to strengthen employment of vulnerable groups and sustainable community development.
On 21 July 2026, Ms. Lalida Pertwiwatthana, Deputy Spokesperson for the Office of the Prime Minister, announced that the Cabinet approved the principles of a draft Royal Decree under the Revenue Code on tax exemptions (improving tax measures to support social enterprises) to extend and increase tax benefits for supporters of social enterprises (SE) through the Revenue Department's electronic donation system (e-Donation). It also revised criteria to facilitate easier access to these tax benefits. The measure aims to encourage ongoing support from the public and business sectors for social enterprises, enhancing their capacity to address social, environmental, and community development issues and create more jobs for vulnerable groups.
Key points of the measure include extending tax benefits for donations of money or assets to social enterprises to cover both individuals and juristic persons, allowing deductions or expense claims at a 1:1 ratio via the e-Donation system from 1 January 2024 onward with no expiration, whereas previously the benefit applied only to juristic persons and ended on 31 December 2023.
Additionally, tax benefits for donors to the Social Enterprise Promotion Fund increase from a 1:1 to a 2:1 deduction for contributions made between 1 January 2024 and 31 December 2028. The measure also expands exemptions from income tax, VAT, specific business tax, and stamp duty on asset transfers or donations to social enterprises or the Promotion Fund without compensation, effective from 1 January 2024 onward with no set end date.
To facilitate operators, the draft Royal Decree relaxes notification criteria for social enterprises claiming tax benefits by allowing more flexible timing, enabling better access to benefits and reducing issues caused by strict deadlines.
The Deputy Government Spokesperson added that social enterprises currently play a vital role in job creation and social development, employing over 11,500 people, including more than 6,600 from vulnerable groups. This tax measure revision serves as a mechanism to motivate the private sector and public to support social enterprises more, leading to business expansion and increased employment opportunities for those needing special promotion.
“The government prioritizes promoting social enterprises as a key mechanism for economic development alongside social problem-solving. This tax measure improvement will ensure continuous and broader support, strengthening social enterprises, expanding employment for vulnerable groups, and supporting community and national sustainable growth in line with the United Nations Sustainable Development Goals.”