You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

April 10, 2020

Bank of Thailand’s Economic Relief Measures for SMEs Affected By COVID-19 as of April 7

Subscribe to Updates

Faced with the specter of corporate liquidity problems brought about by the COVID-19 pandemic, the Thai government and the Bank of Thailand (BOT) have announced an array of measures to assist small and midsize enterprises (SMEs) affected by the COVID-19 pandemic. The measures range from preemptive financial support, to debt moratoria, to the granting of low interest financial assistance.

Below is a chronological summary of the measures as at April 7:

On February 28, the BOT issued guidelines to Specialized Financial Institutions (SFIs) (i.e., state-owned financial institutions established and defined under specific laws, such as the Government Savings Bank, Export-Import Bank of Thailand, and Small and Medium Enterprise Development Bank of Thailand), for providing preemptive financial support to debtors who face direct and indirect adverse impact from the COVID-19 outbreak. The guidelines include providing additional working capital, loan moratoria, packing credit or trust receipts, renewal of credit limits, and cutting interest rates. Details of the February 28 package are available here.

On March 10, the Thai cabinet approved a broad range of financial and fiscal relief measures to alleviate the impact of the COVID-19 outbreak on SMEs, including:

  1. Making a total of THB 150 billion available for low interest loans (at 2% interest for a period of two years, for not over THB 20 million per customer).
  2. Suspending payments of principal and reducing interest rates for debts owed to the Government Savings Bank and Government Housing Bank.
  3. Easing of the BOT rules for granting loans by commercial banks.
  4. The Social Security Fund making available a total amount of THB 30 billion for low interest loans (at 3% interest for a period of three years).
  5. Reducing withholding tax from 3% to 1.5%.
  6. Allowing SMEs a tax deduction equal to 1.5 times their interest expenses incurred on loans obtained under the government’s low interest soft loan initiative (item 1 above) occuring between April 1, 2020, and December 31, 2020.
  7. Allowing SMEs to deduct, for corporate income tax purposes, three times the salary expenses paid from April 2020 to July 2020 to employees who are insured under the Social Security Fund and who receive wages of not more than THB 15,000 per person per month.
  8. Acceleration of VAT refunds to domestic entrepreneurs within 15 days after filing the form.
  9. Refunding the deposit for electricity usage.
  10. Reducing contributions to the Social Security Fund by employers and employees.
  11. Reducing rental fees for state property by government agencies.

On March 20, the BOT cut the policy rate by 0.25 percentage points from 1.00% to 0.75%, the lowest so far, effective on March 23, to reduce the burdens of borrowers affected by the COVID-19 outbreak and to alleviate the liquidity problem of the financial markets.

On April 7, the BOT announced additional measures to assist SMEs affected by COVID-19. These include the following:

  1. A six-month loan payment holiday for all SMEs with a credit line not exceeding THB 100 million. The payment holiday will not be considered as a missed payment and thus will not impair credit history.
  2. Soft loans to SMEs with a credit line not exceeding THB 500 million at a concessional interest rate of 2% per annum and interest-free for the first six months.

These measures provide extensive relief for businesses impacted by the outbreak—especially when considered alongside the tax relief measures announced by the Thai Revenue Department. However, as the crisis deepens and the situation develops, it is likely that the government will continue to issue further economic stimulus measures in an attempt to soften the blow of the outbreak on the national economy. Affected companies should keep a close eye on the measures made available to them, so that they can avail themselves of these measures if necessary to maintain liquidity. Tilleke & Gibbins will continue to update you on these measures as they emerge.

Download Full Article
Related Professionals

Practices

Banking and Finance

Corporate/M&A

Dispute Resolution and Litigation

Employment

Tax

Location

RELATED INSIGHTS​ 

February 19, 2026
Thailand’s Securities and Exchange Commission (SEC) has issued a new regulation on material transactions (MTs) to govern asset acquisitions and disposals by listed companies and their subsidiaries. The new notification on MT criteria (No. TorJor. 45/2568) from the Capital Market Supervisory Board replaces the long-standing notification (No. TorJor. 20/2551) that has governed such matters. The SEC has also introduced parallel amendments to the country’s related-party transaction rules. The new regulation will take effect on July 1, 2026. Any MT matters approved by a company’s board of directors for shareholders’ approval before that date remain subject to Notification No. TorJor. 20/2551. Following that date, the new MT rules will introduce several significant changes that market participants should carefully consider. Expanded Scope of Material Transactions One of the key changes under the new regulation is the expansion of the definition of MTs, which now expressly covers financial assistance and certain lease and business lease arrangements that are not in the ordinary course of business of the listed company or its subsidiaries. For financial assistance, this includes lending, granting credit, providing guarantees, or entering into any arrangement that increases the company’s financial obligations, particularly where the recipient is facing liquidity issues or unable to repay debts. Other forms of financial support also fall within scope. However, whether the provision of collateral for others qualifies as an MT remains somewhat unclear, since no disposal of assets occurs for the provider of collateral. This issue remains to be carefully considered. For lease-related transactions, the MT rules now specifically include the lease or hire-purchase of all or part of a business or assets operated by or belonging to a listed company or its subsidiaries. New Exemptions The new regulation introduces clearer exemptions for transactions between a listed company and its subsidiaries or among subsidiaries, which
Read More
February 10, 2026
Data center and cloud investments are forming a major focus of private-sector investment in Thailand, with tech giants like Amazon, Google, Microsoft, and TikTok, as well as numerous telecom and data center companies, committing significant outlays to data center and cloud development. The country’s Board of Investment (BOI) approved projects worth THB 1.87 trillion in 2025, and THB 746 billion of this was from planned data center investments—by far the largest amount from any single industry. Thailand’s swift rise as a regional data center hub is fueled by surging demand for cloud, AI, and digital services, as well as large-scale investments from global tech firms. The country’s strategic location, competitive power costs, robust fiber infrastructure, expanding IT talent, and supportive government policies—including BOI incentives and streamlined approvals—have made it an attractive destination for scalable and sustainable digital infrastructure investments. The BOI’s proactive approach in updating promoted categories and providing both tax and non-tax incentives further ensures Thailand’s continued growth in this sector. 2025 BOI Changes for Data Centers In the middle of 2025, the BOI responded to the remarkable trend by updating investment‑promotion categories across various sectors (e.g., machinery and electrical equipment, public utilities, digital and innovative industries) to accommodate growing investment in data‑center projects. Before the change, which was detailed in a notification that has applied to investment promotion applications submitted from July 1, 2025, onward, data‑center projects under BOI promotion were granted a single A1 incentive (an eight‑year corporate income‑tax exemption) and subject to one uniform set of conditions. The July 2025 notification restructured promotion for data centers into two categories based on power‑usage efficiency: high‑efficiency data centers and other data centers. Under these rules, qualified high‑efficiency data centers are eligible for an eight‑year corporate income tax (CIT) exemption, while for other data centers this exemption is
Read More
February 9, 2026
When unauthorized credit card transactions occur, who bears responsibility—the cardholder or the issuing bank? In Thailand, a landmark 2025 ruling by the country’s Supreme Court has clarified this question, establishing a stricter standard for banks in fraud disputes and significantly strengthening consumer protections. The case centered on disputed charges where a customer claimed their credit card had been used without authorization. The bank sued to recover the amount, and both the court of first instance and the Court of Appeal ruled in favor of the bank. However, the Supreme Court overruled their judgments and decided that the customer did not need to pay for the unauthorized transactions, placing liability squarely on the bank. This ruling was based on three key findings, which are outlined below. Finding 1: Insufficient Expert Testimony In this case, the bank bore the burden of proving matters related to the credit card system’s manufacture, design, security, and operation, as required under the Consumer Case Procedure Act B.E. 2551 (2008). To meet this requirement, the bank presented testimony from two employees in its credit card department regarding ’security measures and issuance procedures. However, the Supreme Court found these witnesses unqualified as experts, as they did not present technical or academic evidence and did not possess specialized expertise in credit card technology. As a result, their testimony failed to establish that the bank’s credit card technology was sufficiently secure against fraudulent misuse. Finding 2: Contradictory Terms and Conditions The bank’s own credit card terms and conditions included a provision acknowledging that despite the card’s EMV security standards, cardholders must still exercise caution to prevent unauthorized access. The Supreme Court interpreted this clause as an explicit admission that credit card systems remain vulnerable to hacking and fraud, even with high-level security measures in place. This acknowledgment undermined the
Read More
February 4, 2026
On November 18, 2025, Vietnam’s Ministry of Finance released for public consultation a draft decree on administrative sanctions in the field of crypto assets and crypto asset markets (the “Draft Decree”), intended to implement Resolution No. 05/2025/NQ-CP dated September 9, 2025, on the pilot crypto asset market in Vietnam (“Resolution 05”). While Resolution 05 sets out who may participate and under what conditions, the Draft Decree addresses a more practical question for market participants, i.e., what happens if those conditions are not met. In doing so, the Draft Decree offers important insight into how Vietnamese regulators intend to supervise, discipline, and ultimately shape the crypto market during the pilot phase. Regulatory Scope and Overall Sanctions Architecture The Draft Decree applies to both domestic and foreign organizations and individuals engaging in crypto-related activities in Vietnam’s market. Covered entities include: (i) crypto asset issuers; (ii) crypto asset service providers, including trading platforms and market operators; (iii) Vietnamese and foreign investors participating in the pilot market; and (iv) other organizations involved in the offering, issuance, or provision of crypto-related services in Vietnam. The breadth of this scope is deliberate. It appears to reflect a regulatory view that cross-border structures, offshore platforms, and indirect participation may not necessarily insulate market actors from compliance obligations once they operate within the pilot framework. For the crypto industry, this may mark a shift from regulatory ambiguity toward a more explicit articulation of jurisdictional reach. At first glance, the Draft Decree’s monetary penalties appear restrained. The maximum fine per administrative violation is capped at VND 200 million (approx. USD 7,700) for organizations and VND 100 million (approx. USD 3,800) for individuals. However, focusing solely on fine levels risks missing the point. The Draft Decree also places great regulatory weight on supplementary sanctions and corrective measures, including: (i)
Read More