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I.

NPOs and Cooperatives y Business and tax registration procedures o Regulatory agency/ies involved o Average time period for completion Application forms for tax exemption of institution (if available) o Is this obtained from the tax authority or from the specific regulatory agency? o Is the application for tax exemption done during the registration process or is it done per transaction or after the entity has already been set-up and/or licensed? Process of Application for tax deductibility of charitable donations o When is this done during the life of the organization? o Are the donations fully tax deductible? o Are there other conditions for the deductibility? Are institutions subject to tax audit? How are tax audits conducted and subjects chosen? o Is there a system in place to monitor the propriety of tax incentives claimed? o Who is in charge of such system? Law on NPOs and cooperatives Registering and certifying authorities Number of days to complete registration and certifications and approvals of exempt transactions such as importations Are institutions required to file tax returns? o Is there a difference between the tax returns filed by exempt and nonexempt institutions? Tax bases affected by incentives and tax breaks

y y y

II. For the Ministry of Finance and the Revenue Department (their BIR) Questionnaire for public finance experts (Fiscal Policy Office, Thailand) 1. In your country, which sectors are granted tax relief by law? Are non-profit organizations (NPOs) or charitable institutions, senior citizens and cooperatives granted tax relief by law? Could we obtain English versions of these laws? Do laws that provide tax relief contain sunset provisions and provisions for regular review of costs and benefits? 2. Are tax-exempt enterprises treated any differently from non-tax-exempt enterprises in terms of being audited by tax authorities? Procedures for filing of tax returns? Do you think your country can offer any best practices in terms of tax administration of exempt enterprises? 3. What are the primary motives for granting tax relief? What kind of tax relief is granted for each sector? Tax exemptions? Reduced tax rates? Tax deductions and tax credits? Others? 4. What proportion of the beneficiaries of tax relief file electronic tax returns? Does your institution have an electronic database containing information about ALL taxpayers? Will this database allow you to monitor the aggregate value of tax relief or tax expenditures in the country? 5. Apart from investments, which sectors benefit from the greatest value of tax relief? In relation to GDP, what is the value of the tax relief? What is the value of tax relief or tax expenditures granted to investments relative to the value of tax relief granted to social protection? 6. How does the composition of tax expenditures differ from that of your countrys visible budget? 7. Are tax expenditures generally consistent with your countrys policy objectives? What is your opinion regarding the efficiency, effectiveness and equity of laws that provide tax relief? Are these laws well-targeted? 8. Which tax relief or tax expenditures best attain their purpose? Why? Is there a general rule for evaluating which policy objectives to best achieve using tax expenditures and which ones to achieve using budgetary appropriations? 9. Is the sectoral allocation of the countrys visible budget designed taking into consideration the level of potential tax expenditures? 10. Do many of the goods benefiting from tax relief qualify as public goods? Do any qualify as merit goods, or goods the government wishes everybody would have?

11. Does your country estimate and publish tax expenditures or include the value of tax relief in the annual budget? If yes, what is the motivation behind publishing these? How do legislators or executives use these figures? How are tax expenditure figures used for policy purposes? 12. Is a social cost benefit analysis of tax expenditures conducted? If yes, could we obtain copies of studies? How are benefits estimated? 13. If any tax relief laws are repealed, how would any additional taxes raised be spent? 14. Are nonprofit foundations exempt from paying income tax in your country? 15. Are corporations allowed to set up their own nonprofit foundations to do charitable work? If yes, are donations by the corporation to its own foundation tax deductible? 16. If corporations are allowed to set up their own charitable foundations, what are the rules for donations from the mother corporation to the foundation? o To what extent is the deductibility? o What are the conditions for deductibility? o Are such deductible donations also exempt from donor/gift taxes? o What relevant returns have to be filed? o What agency monitors and ensures compliance of these foundations? 17. Economists justify giving subsidies to an activity if it is a public good or if it generates positive externalities. Is the Revenue Department guided by these principles for subsidizing public goods and externalities when rendering decisions or judgments about tax exemptions tax deductions or tax credits for charitable donations to foundations and foundations themselves. 18. What is the rationale/basis of providing subsidies for non-investment related activities? Legislative policy or intent? 19. Does the Ministry of Finance take an active stance in influencing legislation? What is the extent of the power of the ministry in granting subsidies/exemptions or in interpreting tax laws? 20. Which of the following donations or transactions are eligible for tax deduction or tax credits in your country? Are these also exempt from income tax and VAT? A) A corporation donates money to support the national football team B) A corporation donates money for an expensive private school of to build a gymnasium and support the needs of the same school's basketball team

C) A private corporation sets up its own savings and loan company to benefit solely its employees D) A private corporation sets up its own foundation to service the health and credit and education needs of solely its own employees, dependents and retirees. E) A group of professors sets up its own nonprofit foundation which it uses to solicit grant funding for studies about the economy F) A politician sets up his own nonprofit foundation as a conduit for pooling together election campaign contributions and financing election related expenses G) A corporation sets up a foundation to fulfill its corporate social responsibility to its host community and makes donations to the same H) Foundations and entities for charitable/educational and other purposes generate incidental income from side businesses not wholly related to their primary purposes (i.e. bookstores, sale of crops from lands held as capital assets, etc.) I) Nonprofit foundations are exempt from income taxes owning and operating their own canteens 21) How much does Parliament consult the Ministry of Finance when passing special laws granting tax relief? 22) Is Parliament guided by the same economic principles when passing special laws that grant tax relief or tax breaks for various activities or sectors of society. 23) Which of the following receive tax relief in your economy? School both public and private, hospitals, nonprofit companies, senior citizens, cooperatives, disabled people... Which special groups of people or sectors are favoured by tax breaks such as VAT exemptions? senior citizens? Disabled people? Other groups? 24) Is there a limit on the fraction of net profits that a company or person may contribute to a nonprofit foundation, NGO or public charity? 25) Given that cooperatives in Thailand are exempt from income tax, how are they required to report their activities to the revenue department? Do hospital cooperatives exist in your country? 26) Are there laws in your country that hinder or prevent the conduct of taxpayer audits by the Revenue Department? If yes, please give examples.

o Please describe the conduct and process of tax audits. o Who are those responsible for these audits? o Do the criteria for tax audits differ on a yearly basis depending on the focus of the government? o Is there a fixed monitoring system in place to monitor proper compliance? o Please give us an idea of the tax leakage, if any, brought about by possible inefficiencies in the system. o What do you believe are present inefficiencies in the tax incentive system of your country and are the any programs in place to address them?