Thailand Tax and Regulatory Updates - Corporate Tax News (CTN), November 2026

Thailand Tax and Regulatory Updates - Corporate Tax News (CTN), November 2026
Thailand’s latest tax and regulatory measures offer opportunities for businesses and, in some cases, individuals investing in digital technologies, energy efficiency, and sustainability. They also extend existing tax relief and update compliance and employment-related obligations.
The following highlights key incentives, eligibility conditions, and implementation dates, together with practical considerations for investment planning and compliance.

Tax Incentive for Digital Technology Investments
Royal Decree No. 802 provides a corporate income tax (CIT) incentive for eligible small and medium-sized enterprises (SMEs)¹ investing in digital transformation. Qualifying investments include computer software, hardware, smart devices, and digital services registered with the Digital Economy Promotion Agency (DEPA).
Eligible SMEs may claim the incentive subject to the following conditions:
  • An additional 100% CIT deduction is available for qualifying expenditure of up to THB 300,000 on computer software, hardware, smart devices, and digital services, excluding computers.
  • Payments must be made to providers of qualifying software, hardware, smart devices, or digital services registered with DEPA.
  • Qualifying software, hardware, smart devices, or digital services must not be used, wholly or partly, to claim income tax exemptions under another Royal Decree issued under the Revenue Code or in a business granted a CIT exemption under investment promotion, national competitiveness enhancement, or Eastern Economic Corridor (EEC) legislation.
  • The incentive applies to expenses incurred from 24 June 2025 to 31 December 2027.
¹ Eligible SMEs are companies or juristic partnerships with paid-up capital not exceeding THB 5 million on the last day of the accounting period and income from sales of goods and provision of services not exceeding THB 30 million for that period.

Tax Incentives for Solar Power Systems and Energy-Efficient Investments
Royal Decree No. 805 provides personal and corporate income tax incentives for investments in solar power systems and high-efficiency machinery or equipment to promote renewable energy and energy efficiency. The energy-efficient investment incentive is subject to the following key conditions:
  • Payments must be made to a VAT-registered operator and supported by an e-Tax Invoice issued in accordance with the Revenue Code.
  • Qualifying expenses must not be used, wholly or partly, to claim another income tax exemption under a Royal Decree or Ministerial Regulation issued under the Revenue Code.
  • Qualifying machinery, equipment, or materials must not be used, wholly or partly, in a business granted CIT exemption under investment promotion, national competitiveness enhancement, or EEC legislation.
  • The incentive is subject to rules, procedures, and conditions prescribed by the Director-General.
The following tax benefits are available:
  • Solar power systems — individuals
    • Individuals may claim a personal income tax (PIT) deduction for the actual cost of solar equipment and installation, up to THB 200,000. The deduction may be claimed once, in the tax year in which the grid connection is completed.
    • The system must be installed on a house, building, or condominium unit owned or occupied by the individual and connected to the grid of the Metropolitan Electricity Authority (MEA) or Provincial Electricity Authority (PEA).
    • Eligible expenses must be incurred from 3 March 2026 to 31 December 2028.
  • Energy-efficient investments — individuals¹, companies, and juristic partnerships
    • An additional 50% tax deduction is available for qualifying investments in high-efficiency machinery or equipment, or energy-conservation materials or equipment, that result in energy savings.
    • Qualifying machinery, equipment, or materials must carry the Energy Efficiency Label No. 5 (5-star level), certified by the relevant authorities.
    • Eligible expenses must be incurred from 3 March 2026 to 31 December 2028.
¹ Individuals earning assessable income under Section 40(5)–(8) of the Revenue Code.

CIT Incentives for Electronic Tax Systems
Royal Decree No. 808 provides an additional CIT incentive for companies and juristic partnerships making qualifying investments in electronic tax systems from 1 January 2026 to 31 December 2027. The incentive supports business digitalization and more efficient, transparent tax administration.
Eligible expenditures for the additional tax deduction include:
  • Investments in e-Tax Invoice and e-Receipt systems.
  • Investments in the e-Withholding Tax system.
  • Service provider fees for using e-Tax Invoice, e-Receipt, and e-Withholding Tax systems.
CIT Exemption for Carbon Credit Sales
Royal Decree No. 760 provides a CIT exemption for net profits from carbon credit sales in Thailand under the Thailand Voluntary Emission Reduction Program for three consecutive accounting periods. Claims are subject to rules, procedures, and conditions prescribed by the Director-General of the Thai Revenue Department.
  • The first accounting period begins on the date the Thailand Greenhouse Gas Management Organization issues the participant’s carbon credit sales certification.
  • Separately, the government plans to reduce taxes on recycling to encourage environmentally friendly business practices and support a circular economy.
  • The incentive applies for the period from 20 March 2023 to 31 December 2027.
Additional BOI Tax Incentives Granted for Listed Investment-Promoted Companies
Board of Investment (BOI) Announcement No. 10/2569, effective from 11 September 2026, introduces additional CIT incentives to encourage investment-promoted companies to list on the Stock Exchange of Thailand (SET), the Market for Alternative Investment (MAI), or the Live Exchange (LiVEx).

Key Criteria
  • Projects must be promoted under BOI Notifications No. 8/2565 and 9/2565, have Group A incentives, and have remaining CIT exemption entitlements in terms of both exemption period and amount at the time of application.
  • Companies must be listed on the SET, MAI, or LiVEx before applying. Companies listed before the measure’s effective date are not eligible.
  • Projects with a total CIT exemption period exceeding eight years are not eligible for additional CIT reductions. The combined CIT reduction period under this and other BOI measures must not exceed five years.
  • Projects promoted under special measures for existing operations, including the Industry Upgrading Measure and the Investment Promotion Measure for Community and Social Development, are not eligible.
  • Additional tax incentives depend on the eligible company’s BOI activity classification.
Double Deduction for Donations to the Thai Red Cross Society and Designated Foundations Expanded
Royal Decree No. 806 amends Royal Decree No. 795 to extend the 200% tax deduction for qualifying donations to the Thai Red Cross Society and designated foundations through 31 December 2027. It also adds nine foundations to the list of eligible recipients. The incentive remains subject to prescribed conditions and limits.

Key Criteria
  • Eligible recipients: The Thai Red Cross Society and designated foundations, including nine newly added foundations.
  • Eligible donors: Individuals, companies, and juristic partnerships.
  • Donation requirements: Donations must be made through the e-Donation system to qualify for the enhanced deduction.
  • Applicable periods:
    • 1 January 2025 – 31 December 2027: Donations to the Thai Red Cross Society and existing eligible foundations.
    • 26 May 2026 – 31 December 2027: Donations to the nine newly added foundations.
Indirect Tax Relief: Transactions relating to qualifying donations are exempt from VAT, Specific Business Tax, and Stamp Duty, provided the relevant costs or expenses are not claimed again as deductible expenses for tax purposes.

Double Deduction for Donations to Educational Institutions Extended
Royal Decree No. 809 retroactively extends the 200% tax deduction for eligible donations made through the e-Donation system from 1 January 2025 to 31 December 2027. The previous incentive expired on 31 December 2024.
Key Criteria
  • Individuals and companies may claim a 200% deduction for donations made through the e-Donation system to eligible educational institutions, subject to applicable deduction limits.
Indirect Tax Relief: Transactions relating to qualifying donations are exempt from VAT, Specific Business Tax, and Stamp Duty, provided the related costs or expenses are not claimed again as deductible expenses for tax purposes.

Double Deduction for Donations to Sports Organizations Extended
Royal Decree No. 810 retroactively extends the 200% tax deduction for eligible donations made through the e-Donation system from 1 January 2025 to 31 December 2027. The previous incentive expired on 31 December 2024.

Key Criteria
  • Individuals and companies may claim a 200% deduction for donations made through the e-Donation system to eligible sports organizations, subject to applicable deduction limits.
  • Eligible recipients include qualified sports organizations recognized by the relevant authorities.
Indirect Tax Relief: Transactions relating to qualifying donations are exempt from VAT, Specific Business Tax, and Stamp Duty, provided the related costs or expenses are not claimed again as deductible expenses for tax purposes.

Reduced Withholding Tax Rate under the e-Withholding Tax System Extended
Ministerial Regulation No. 402 extends the reduced 1% withholding tax rate for qualifying payments made through the e-Withholding Tax (e-WHT) system.
  • Qualifying payments include commissions, royalties, rent, professional service fees, payments under contracts for work, advertising fees, and other service fees, subject to prescribed conditions and exclusions.
  • The reduced rate applies to qualifying payments made from 1 January 2026 to 31 December 2027.
7% VAT Rate Extended Through September 2027
  • Royal Decree No. 807 extends Thailand’s 7% VAT rate for sales of goods, provision of services, and imports through 30 September 2027. The rate was due to expire on 30 September 2026. The extension is intended to support economic stability and domestic consumption.
Employee Welfare Fund Enforcement Postponed
A Royal Decree announced on 22 October 2026 further postponed the commencement of Employee Welfare Fund (EWF) contributions from 1 October 2026 to 1 January 2027.

Key Changes
  • First fund contribution: Postponed from 1 October 2026 to 1 January 2027.
  • First filing: Postponed from 15 November 2026 to 15 February 2027.
Employer Responsibilities
  • Contribute every pay cycle: Employers must deduct employees’ fund contributions from salary and contribute at the same rate. Contributions must be remitted to the EWF within the first 15 days of the following month.
  • Establish written rules and procedures governing the payment of welfare fund benefits: Written rules must specify, at a minimum, employee and employer contribution rates, collection and verification procedures, calculation of returns, and the conditions and timing for benefit payments.
  • Post-Termination Responsibilities: Upon termination of employment, the employer must return the employee's deposit account and issue a certificate confirming the termination of employment within 30 days.
BDO Insights
These measures highlight Thailand’s focus on digital transformation, sustainability, and investment-led growth. Businesses may have opportunities to reduce tax costs through qualifying investments and donations, but eligibility depends on the specific conditions of each measure. Electronic tax and donation systems also remain central to accessing several of the benefits.

Practical Considerations
Businesses should review current and planned investments in digital technologies, electronic tax systems, renewable energy, carbon credits, and BOI-promoted activities against the relevant eligibility conditions. Review the use of e-Tax Invoice, e-Receipt, e-Withholding Tax, and e-Donation systems, and check restrictions on claiming overlapping incentives.
Employers should use the EWF postponement period to review payroll systems, contribution procedures, and operational readiness. Before claiming tax benefits, businesses should confirm applicable deadlines and deduction limits, retain supporting documentation, and review the relevant implementing rules.
 
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