Expenses incurred for staff events such as New Year parties, company outings, or annual gatherings are typically categorized as welfare expenses.

These are generally tax-deductible for Corporate Income Tax (CIT) in Thailand if they are genuinely for the benefit of all employees and promote team cohesion and welfare, not just for a select few.

General Criteria CIT Deductibility

• Organized for the collective benefit of all or a substantial group of employees.
• Not for the personal benefit of specific individuals or shareholders.
• Reasonable in terms of cost and frequency.
• Aimed at fostering good employee relations and company culture.
• Must not be disguised remuneration or hidden benefits.

Documentation Needed For CIT Deduction

• Invoices and receipts from vendors (venue, catering, activities, transportation).
• Proof of payment.
• Attendance lists or records of participants.
• Report on costs and the event to the Management/Accounting Division.
• Approval for the event and budget from the Company’s Board of Directors.
• Company policy and Internal Regulation to outline on practical implication, conditions.
• Internal memo or company announcement for the event.
• Agenda or program of the event.

References

• Thai Revenue Code, Section 65 ter (3) (General expense deductibility)
• Ministerial Regulation No. 126 (B.E. 2509) (Regarding welfare benefits)
• Revenue Departmental Instruction Paw. 118/2545 (Guidance on welfare expenses)