Tax Insights: Thailand Corporate Tax Deductions for Investment in Machinery
On 20 January 2020, the Thai Official Gazette No. 137 introduced the Thailand Tax Royal Decree No.690 (issued under the Revenue Code regarding Revenue Exemption B.E. 2553) to give corporate entities a 50% additional expense deduction for investments made in new machinery. Corporate entities which operate the business of leasing and investing in machinery for the purpose of leasing will not qualify for this additional deduction. The deduction is only applicable to investments in machinery made from 1 September 2019 to 31 May 2020. The Machinery Registration Act B.E. 2514 (1971) defines machinery as anything which consists of a part that either generates, converts or delivers energy; however, this definition does not include vehicles registered under the Motor Vehicle Act B.E. 2522 (1979).