Friday, March 29, 2024
HomeDESTINATIONSHomestays join tax rebate scheme

Homestays join tax rebate scheme

-

BANGKOK 16 August 2018: Guests staying in homestays with four or less rooms will be eligible for an income tax rebate based on their holiday expenses.

Up until now the tax breaks have been applicable only for stays at registered hotels that could provide verifiable receipts.

But in a move to spread tourism benefits beyond mainstream hospitality providers and urban centres, the Ministry of Tourism and Sports has filed a proposal to extend the scope of income tax rebates to stays at small enterprises.

Homestsay owners are already free of most tax obligations such as VAT and are outside the scope of requirements and standards that apply to hotels and guesthouses.

Under the latest incentives the small homestay operator would need to register with the ministry to ensure that the stay receipt would be accepted by the tax office.

Last Tuesday,  the Ministry of Tourism and Sports permanent secretary, Pongpanu Svetarundra, confirmed the measure had won the approval at the weekly Cabinet meeting.

But the devil is in the details and that will require considerable input from Ministry of Finance, although tourism ministry officials are confident it can be up and running by the time the October peak season begins. It has now been forwarded to the  Ministry of Finance for processing.

The emphasis is on spreading tourism earnings down the pipeline to small operators who usually miss out on incentives designed to encouraging domestic tourism.

Domestic tourists who intend to apply for a tax rebate when they file their annual income forms need to produce receipts from registered hotels.

Pongpanu Svetarundra

Under the new rule small homestays could provide similar receipts that would be acceptable for annual tax returns, but they would have be registered homestays.

The benefits could trickle down to 55 provinces with 167 districts if the proposal gains traction and is launched later this year.

Linked to the holiday rebate plan the government will organise training sessions for villagers with homestay.

The plan could be up and running to support small homestays in Buriram province in time for the first ever Moto GP race 7 October, which will attract thousands of Thai motorcycle race enthusiasts. The MotoGP will visit Thailand for one race per season over a contractual three-year period 2018 to 2020.

“The Ministry of Tourism and Sports has been working hard on this proposal and we are proud to be part of this great policy push,” said the permanent secretary. “The people who benefit directly are locals. The revenue from the tourism sector will spread out to the community as a whole and equally. “

Must Read

International buyers splurge on Phuket homes

0
PHUKET, 28 March 2024: Phuket has seen an unprecedented invasion of international buyers, transforming the island into the world's largest leisure-branded residential real estate...