Revenue Department to clarify temple tax and e-Donation rules

Thailand’s Revenue Department will meet the National Office of Buddhism (NOB) on September 22 to clarify the tax obligations of temples and religious institutions and ensure proper use of the e-Donation system, as authorities seek to strengthen oversight and close potential loopholes.

Revenue Department director-general Somsak Anantawat said the discussions would cover temples’ tax responsibilities, legal requirements surrounding e-Donation and measures to make donation procedures more robust.

The e-Donation system became fully mandatory on January 1, 2026. Around 46,000 religious institutions of all faiths are currently registered, including about 43,000 Buddhist temples out of approximately 45,000 nationwide.

Donations made through e-Donation across all participating organisations, including temples, schools and hospitals, totalled approximately THB34 billion in 2025. The latest accumulated figure for 2026 stands at around THB23 billion.

e-Donation intended to improve transparency

Somsak said this was the first year in which the Revenue Department required public charitable organisations to receive donations through e-Donation if donors wished to claim tax deductions.

The system allows authorities to verify that donated funds are actually received by the intended organisation while also making the donation process more transparent.

Regarding recent reports of investigations and substantial asset seizures involving religious organisations, Somsak said the department did not yet have detailed information relating to those cases because e-Donation had only become fully mandatory this year.

Temples and foundations treated as separate legal entities

Somsak stressed that temples and foundations are legally separate entities, even if the same person manages both.

He said the temple currently in the news had registered for e-Donation, while its associated foundation did not have the legal status of a public charitable organisation.

If a foundation or association that is not recognised as a public charitable organisation receives income from sources other than donations, it must file a P.N.D.55 tax return and pay tax in accordance with the law, he said.

The Revenue Department will continue examining such income.

Temples themselves also have tax-related obligations. For example, when they make payments for construction work or rent, they are required to deduct withholding tax in the same way as other entities.

Revenue Department to examine tax treatment of misappropriated funds

If money is embezzled from a foundation, the foundation, as a legal entity, must pursue legal action against the person responsible, Somsak said.

The Revenue Department’s role would be to determine whether the money constituted income belonging to the foundation or personal income, so that the correct tax assessment could be made.

Authorities would also examine whether legally required financial statements had been properly prepared and submitted to the relevant agencies.

Somsak encouraged the public to make donations through e-Donation, saying the system not only provides greater confidence that funds reach the intended temple or organisation but also increases transparency and allows donors to claim tax deductions under applicable rules.

Tax revenue exceeds target

The Revenue Department collected approximately THB2.16 trillion during the first 11 months of fiscal 2026, from October 2025 to August 2026.

That represented 88.35% of the full-year estimate, an increase of 7.2% from the same period a year earlier and 3.7% above target.

Around 50% of revenue came from income taxes, while value-added tax (VAT) accounted for approximately 45%.

Between May and August 2026, the department collected around THB970 billion, above its target of THB920 billion and approximately 11% higher than during the same period last year.

Somsak attributed the increase partly to VAT on imports, including the effects of energy prices, as well as corporate income tax, particularly from energy businesses.

“We believe revenue collection in September will meet the estimate, and overall, the department’s full-year performance will definitely be positive,” he said.

Full-year revenue expected to beat target

Somsak expects tax revenue for fiscal 2026 to exceed the target by approximately THB40-50 billion, or around 2%.

For fiscal 2027, the department has set a revenue collection target of approximately THB2.5 trillion, which he believes can be achieved.

Efforts to broaden the tax base have also exceeded expectations.

During the first 11 months of the fiscal year, the department brought more than 170,000 new taxpayers into the system, compared with a target of about 140,000.

Of these, approximately 56,000 were online sellers, reflecting greater use of data and technology to identify businesses without physical storefronts and bring them into the formal tax system.