On 02 March 2026, Thailand Tax Royal Decree (No 805) was enacted entitling a corporate entity to a corporate tax deduction concession for the investment in machinery and equipment assets for the saving or conserving of energy.

This Insight summarizes the entitlement under Royal Decree (No 805).

The Tax Deduction Concession under RD (No 805)

Applicability

From 03 March 2026 to 31 December 2028.

Amount

For the investment in energy saving machinery and equipment, a corporate tax deduction concession of 150%, as follows:

• The usual 100% tax deduction (as depreciation costs); plus
• An additional 50% tax deduction concession.

Rules, Procedures and Conditions

​The rules, procedures and conditions specified in the RD (No 805) are that:

1. The machinery and equipment shall be certified as being a Level 5 Energy-Saving rating by Dept. of Alternative Energy Development and Efficiency,
2. The payments for the machinery and equipment shall be made only to VAT registrants from whom electronic tax invoices (e-Tax Invoices) are received,
3. The payments for this tax deduction concession shall not be payments by a business receiving benefits under the law governing investment promotion, law governing targeted industry enhancement or law governing the Eastern Economic Corridor, and
4. The additional rules, procedures and conditions of the Revenue Dept. shall apply.

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