Two options to book depreciation cost
Companies extended tax allowance for machinery replacement will be allowed to book 45-77 per cent of machinery value as depreciation cost in the first year.
Satit Rungkasiri, director-general of the Revenue Department, said that the rest would then be booked in the period of four to five years.
Such tax allowance to factories suffering from floods and in need of machinery replacement would be considered by the Cabinet tomorrow. The Cabinet will consider the tax package for corporate and individual flood victims. For corporates, the tax allowance for machinery replacement would be 125 per cent of the actual value. At present, the allowance is 100 per cent of actual value and the beneficiaries need to book the depreciation cost in five years.
Under the proposal to the Cabinet, two options are offered to the companies. If they should to book 45 per cent of allowance in the first year, they can book the remainder in five years (20 per cent each). Should they book 77 per cent in the first year, they can book the rest in four years (12 per cent each).
Households would also be given tax allowance up to Bt100,000 for home repairs. Vehicle owners will get up to Bt30,000 for car repairs.
Flood victims are advised to keep all receipts or obtain a copy of ID card of contractors or car mechanics.
The tax allowance is given to expenses paid in this and next year, Satit said.
Satit today signed an agreement with Siam Commercial Bank, allowing the bank’s clients to pay taxes through their credit cards. The service fee will be waived.
SCB has issued about 1.8 million credit cards, said Yol Phoksasub, senior executive vice president of the SCB.
