Can I claim VAT and tax relief on client entertainment in Thailand?
Partly. Entertainment is deductible for CIT up to 0.3% of gross receipts, capped at 10 million baht. The input VAT on entertainment cannot be claimed on P.P.30.
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Detailed Explanation
## Corporate tax
The Revenue Department caps entertainment at 0.3% of gross receipts and never more than 10 million baht a year. The excess is added back.
## VAT
Section 82/5 of the Revenue Code blocks input VAT on entertainment. That VAT can be treated as part of the cost for CIT.
## How AccountsOS helps
Finn tags entertainment, moves the VAT to the cost line and tracks the running total against the cap.
Source: https://www.rd.go.th/english/6044.html
Real-World Examples
Company with 20 million baht receipts
The cap is 60,000 baht. Spending of 80,000 baht means 20,000 baht is added back.
Common Mistakes to Avoid
- Claiming the VAT on client dinners
- Ignoring the cap
Frequently Asked Questions
Does the cap include VAT?
The blocked VAT becomes part of the cost; ask your accountant how it is counted.
Practical Tips
- Note who you entertained on each receipt.
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