As Thailand is currently facing a substantial surge in COVID-19 infections, further relief measures have been approved by the Cabinet on 5 May 2021 to assist employees and employers affected by the recent COVID-19 outbreak including the following measures:
- THB 2,000 Cash Transfer – Eligible employees of private operators who registered with the Social Security Fund will receive an additional payment of THB 2,000, in two weekly installments of THB 1,000 each, through the government’s Pao Tang e-wallet application. Currently, the payment transfer dates will be 20 May 2021 and 27 May 2021.
- Low-interest Loans for Employees Receiving Regular Income – Low-interest loans will be offered by the Government Savings Bank and Bank of Agriculture and Agricultural Cooperatives to people who receive regular income (e.g., employees of private operators), self-employed people, and farmers until 31 December 2021. The interest rate is fixed at 0.35% per month with a maximum loan period of three years. The first six installments are also interest free and the borrower is also not required to repay during this period.
- Extension of Tax Incentive for Hiring Former Convicts – From 1 January 2021 to 31 December 2021, companies and juristic persons who employ former convicts of Thai nationality who have been released from prison less than three years since the date of release are entitled to record taxable expenses of the expense used for the purpose of hiring the former convicts at an additional 50% based on the portion of expense not exceeding THB 15,000 per person per month. A draft implementing legislation is being finalized and expected to be issued soon.
Apart from the above measures, it is expected that additional relief measures may be introduced in the near future to alleviate the impact of the worsening COVID-19 situation. We will keep you posted on further developments on this matter.