Gifts provided to staff for special occasions like anniversaries or New Year parties are considered employee welfare benefits.

Under Thai tax regulations, if these gifts are given as a general company policy and are not excessive, they can generally be deductible for Corporate Income Tax (CIT). However, there are specific limitations and conditions that apply to ensure deductibility.

General Criteria CIT Deductibility

• Provided as a genuine employee welfare benefit.
• Given as a general policy, non-discriminate and not on an individual basis for specific performance.
• Value is reasonable and not excessive for the purpose.
• Not considered personal taxable income for employees if of small value and customary.
• Purpose is to foster good employee relations and morale.

Documentation Needed For CIT Deduction

• Receipts or invoices for the purchase of gifts.
• Proof of payment (e.g., bank transfer slips).
• Company policy and internal regulations outlining the provision of such gifts.
• List of recipients, occasion, and value of gifts distributed.
• Minutes of meetings if approval was required for the expense.
• Event records / picture or movie clips

References

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