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 eTax computer system costs.

The corporate tax deduction concession for eTax computer system costs was first granted for a period of time in the 2019 year, then extended for a 3 years period of time from 2020 to 2022, and Royal Decree (No. 766) extends it another 3 years period of time from 2023 to 2025.

A summary of the deduction concession under Royal Decree (No.766) follows:

Applicability

From 01 Jan 2023 to 31 Dec 2025.

eTax Computer System Costs

Tax Deduction Concession

In addition to depreciation deductions, an exemption from corporate tax for 100% of the costs, i.e. a double 200% corporate tax deduction concession for purchases of:

1. Computer equipment and software for eTax Invoice and eReceipt (eTax Invoice and eReceipt computer system assets); and
   
2. Computer equipment and software for eTax Remittances (eRemittances including eWithholding Tax computer system assets).
   

Rules, Procedures and Conditions

The Royal Decree (No. 766) prescribes for the eTax computer system costs:

1. The eTax computer system assets:

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

2. The tax deduction concession:

1. Shall be claimed over a period of not less than 3 financial years;
2. 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;
3. Shall not be claimed by any business exempt from corporate tax under the law governing investment promotion, the law governing targeted Industries, or the law governing the Eastern Economic Corridor; and
4. Shall be claimed in accordance with the Revenue Department's rules, procedures and conditions.

eTax Service Provider Fees

Tax Deduction Concession

An exemption from corporate income tax for 100% of the costs, (i.e. a double 200% corporate tax deduction concession) for the following:

1. Fees paid to service providers of eTax Invoice and eReceipt systems; and
   
2. Fees paid to service providers of eTax Remittance systems.
   

Rules, Procedures and Conditions

The Royal Decree (No. 766) prescribes for Fees paid to service providers that the tax deduction concession:

• Shall be claimed in accordance with the Revenue Department's 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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