Taxation and Religious Organizations: The Case of Buddhist Temple

Abstract

This academic article analyzed and compared the tax measures applicable to Buddhist temples in Thailand and religious juridical persons in Japan to identify potential legal improvements aligned with contemporary economic contexts. The study revealed that while Thailand granted broad tax exemptions to temples as public charitable organizations, it lacked clear mechanisms for taxing income derived from commercialized activities. This regulatory gap led to transparency issues and challenges in financial auditing. In contrast, Japanese law distinguishes between “religious activities,” which were tax-exempt, and “profit-making activities,” which were subject to taxation at preferential rates, even when conducted by religious entities. Japan’s approach effectively balanced the support for religious preservation with fiscal fairness. Consequently, this article proposed that Thailand should consider legislative reforms to categorize temple income types more precisely. Implementing taxes on non-religious commercial revenues would enhance financial transparency, mitigate the issues of “commercialized Buddhism,” and elevate the efficiency of temple asset management to international standards.