Extension of Capital Expenditure Corporate Tax Deduction

Under the Royal Decree No. 604 of 2016 (B.E. 2559), tax benefits were given to companies or partnership’s expenses of domestic investment. On 24^th January 2017, the cabinet approved a one year extension of this tax measure, that is for the period from 1^st January 2017 until 21^st December 2017.

It should be noted that the privileges have been amended, in particular, the multiple for the calculation of tax expenditure deduction has been reduced from 2 to 1.5.

Accordingly, under this tax measure, expenses can be deductible 1.5 times if they were incurred for the investment in the following assets: –

• Machinery, parts, equipment, tools, appliances, decorations, and furniture;
• Computer programs;
• Vehicle except for less than 10 seater cars; and
• Permanent building, which includes land and housing.

Eligible for deduction are the following assets:

• New assets that are invested in 2017 and will be ready for use by 31st December 2017 (but not including machinery and permanent buildings, which may be ready for use afterwards).
• Assets that have already obtained the 2 times deduction from the Royal Decree no. 604, if the assets’ expenses for investment have not been completed and are still carried on in 2017. The multiple of 1.5 will then apply for the deduction under this tax measure.

Please be informed that the company or partnership that applies for this benefit must prepare an investment project and expense plans and present these to the Revenue Department.

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