On 01 June 2023, Thailand Tax Royal Decree (No.766) was gazetted extending an entitlement for corporate entities to claim a corporate tax deduction concession for e-Tax computer system costs.

This Tax Insight has been updated for the prescriptions in RD (No 766).

The Tax Concessions under Royal Decree (No 766)

A corporate tax deduction concession for e-Tax computer system costs was first granted for a period of time in the 2019 year. It was extended for the 3 years of 2020 to 2022 and Royal Decree (No 766) extends it for another 3 years period of time to 2025, as follows:

Applicability

From 01 Jan 2023 to 31 Dec 2025.

The Tax Deduction Concessions

1. For purchases of computer equipment and software for:

• eTax Invoice and eReceipt computer systems, and/or
• eRemittance and eWithholding Tax computer systems,

a double (200%) corporate tax deduction (i.e. double depreciation deductions).

2. For services fees paid to services providers of:

• eTax Invoice and eReceipt computer systems, and/or
• eRemittance and eWithholding Tax computer systems,

a double (200%) corporate tax deduction (i.e. double deduction for the fee costs)

Rules, Procedures and Conditions

1. For purchases of eTax computer system assets, the computer system assets:

• Shall be assets that have never been used before;
• Shall be assets entitled to depreciation claims under Section 65 bis (2) and purchased and ready for use by 31 Dec 2025; and
• Shall be assets that are situated in Thailand.

And the tax deduction concession:

• Shall be claimed over a period of not less than 3 financial years;
• Shall not be claimed in addition to any other tax deduction concession that may be provided under another Royal Decree, in whole or in part;
• Shall not be claimed by any business that is exempt from tax under the law governing investment promotion, the law governing targeted Industries, or the law governing the Eastern Economic Corridor; and
• Shall be claimed in accordance with the Revenue Department's additional rules, procedures and conditions.

2. For payments of services fees to services providers, the deduction concession:

• Shall be claimed in accordance with the Revenue Department's additional rules, procedures and conditions.

Caution

If the Revenue Department's tax audit officers find any of the rules, procedures or conditions have not been met, the entitlement to the concession may be lost, and back-taxes plus penalty and surcharge could be payable.

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