Income Tax deductions

On 8 September 2021, the Director-General of the Thai Revenue Department has issued notification number 406 regarding Royal Decree 718 relating to Income Tax. Companies (and others) can claim an additional deduction of costs (100 percent) from 1 January 2020 to 31 December 2022 for investments in various IT systems, for example, tax payment processing.

Furthermore, certain service fees, such as e-tax remittance service, can be deducted at 100 percent. For the granting of above tax incentives, the Company is required to provide details of investment costs or payments via the website of the Revenue Department before filing of corporate income tax return. Companies that made such investments or paid related service fees should check if they are eligible for tax deductions.

Additionally, during the period of January 2021 – December 2022, any costs for purchasing of software, hiring of developers to create software, or using of software which have been paid to software firms registered with the Digital Economy Promotion Agency can be used at 100 percent for corporate income tax deduction; however, the maximum deduction is capped at THB 100,000. Eligible companies under Royal Decree number 725 shall not be granted the corporate income tax exemption on software.

Additional Expense deductions

50 percent of costs for antigen test kits for companies’ employees purchased from 14 September 2021 – 31 March 2022 can be deducted from corporate income tax.

Additional Tax Deduction for hiring Thai ex-prisoners

An additional Corporate Income Tax incentive can be granted to companies employing former prisoners (released within 3 years). 50 percent of salary costs capped at THB 7,500 per person can be granted an additional deduction exemption. However, only companies that have filed e-Withholding tax are eligible.