The Thai Revenue Department (“TRD”) released news on additional tax deductions to support the use of renewable energy and energy conservation as follows:
1. Tax measure to promote the installation of solar rooftop for residential homes
Benefits:
Individuals, excluding partnerships or non-juristic body of persons, can deduct the cost of purchasing equipment and installing of solar rooftop for residential house according to the actual payments, but not exceeding THB 200,000.
Conditions:
The deduction can be utilized once for no more than one system throughout the duration of the measure;
The deduction can be utilized in the tax year in which the connection to the power grid of Metropolitan Electricity Authority (“MEA”) or Provincial Electricity Authority (“PEA”) is completed; and
Tax invoice in electronic form (“e-Tax invoice”) must be maintained as supporting document for deduction.
Period:
From the day following the date of its publication in the Royal Gazette to 31 December 2028
2. Tax measure to promote high-efficiency machinery, equipment, and materials for energy conservation
Benefits:
Individuals, deriving assessable income under Section 40(5)-40(8) of the Revenue Code (“TRC”), and juristic persons can take deduction on the cost of investment of the assets for 1.5 times of the actual payments.
Conditions:
- The assets must be new and located in Thailand;
- The assets must be depreciated according to Section 65 bis (2) of the TRC, and being acquired and ready to use by 31 December 2028;
- The assets must not be used under
- other tax privileges granted under the TRC,
- other business exempted from corporate income tax, whether wholly or partially, according to
- the Investment Promotion Act;
- the Act on Promotion of Competitiveness Enhancement for Targeted Industries; and
- the Eastern Economic Corridor Act.
- E-Tax invoice must be maintained as supporting document for an extra deduction.
Period:
From the day following the date of its publication in the Royal Gazette to 31 December 2028
(Source: The Revenue Department’s news No. PorChorSor. 3/2569, released on November 25, 2025)
Author’s Note:
Individuals and businesses should review that the requirements and documentation obtained during the tax privilege period comply with the forthcoming Royal Decree and Notification of the Director-General of the Revenue Department. This is essential to qualify for the applicable tax deductions.
It is also to note that the TRD continues to encourage businesses to be under e-tax system since e-Tax invoice is required to be used as evidence for utilizing recent tax measurements issued by the TRD. This enables the TRD to closely monitor compliance and ensure more accurate tax collection.
[Contact Person: Ms. Thirapa Glinsukon, Partner and Ms. Susama Thaveesin, Director]