Tax exemptions for flood payments

The cabinet has approved a tax exemption for corporate income derived from insurance payouts to policyholders affected by this year’s floods.
Speaking after the cabinet meeting on Tuesday, government spokesman Jirayu Houngsub said for companies in areas affected by flooding that have insurance coverage against floods, those that received payouts will be exempt from income tax calculations, according to the Finance Ministry.
For business operators seeking loans to repair their businesses from flood-related damage, the ministry is offering soft loans totalling 50 billion baht.
These loans have an interest rate of 3.5% for the first two years, with a maximum loan amount of 40 million baht per borrower.
Applications can be submitted through state financial institutions and the 16 commercial banks in the country.
For businesses applying for loans that lack sufficient collateral, the Thai Credit Guarantee Corporation (TCG) is expected to provide loan guarantees.
TCG will offer guarantees for this programme totalling 1 billion baht, with guarantees ranging from 10,000 baht to 2 million baht per borrower.
The guarantee fee is 1.25% and the guarantee period is up to 10 years, making it easier for small businesses to access credit.
Other measures to assist those affected by the floods include the Government Savings Bank’s plan to offer a principal repayment holiday and suspension of interest for six months for loans of up to 10 million baht per borrower.
The government also requested private financial institutions reduce the minimum payment for credit cards to 3% for three billing cycles.
According to Mr Jirayu, this year’s floods have affected up to 50 provinces, with the northern region of the country particularly hard hit.
The Thai Chamber of Commerce and the University of the Thai Chamber of Commerce have estimated the cost of flood damage in 2024 at 30-40 billion baht, or 0.21% of GDP.
As of Sept 18, the assessment found the agricultural sector was severely affected, with damage estimated at 27.4 billion baht, followed by the service sector (9.2 billion) and industrial sector (287 million baht).