Tax exemptions and deductions available to corporations

As the tax season approaches, it is essential for taxpayers to prepare diligently for their upcoming filings. Whether you are an individual or a business owner, leveraging available tax exemptions and deductions can significantly reduce your tax liabilities.

In this month’s article, we provide a concise overview of key tax benefits applicable to corporate income tax, helping you navigate the process with ease and efficiency. 

Deductions available Deduction amounts 
Sale of carbon credits A 100% CIT deduction is granted on profits from selling carbon credits under the voluntary greenhouse gas program for three consecutive accounting periods.1 
E-donation to the Forest Department A 100% CIT deduction for electronic donations to the Forest Department for climate projects, with the donated amount, whether in cash or property, can be claimed. This must not exceed 10% of net profit before deducting expenses for public charity, public benefits, or education and sports costs under Section 65 Ter (3)(b) of the Revenue Code.2 
E-tax systems A 200% CIT deduction is available for companies on fees paid to providers of e-tax invoices, e-receipt, and e-tax WHT systems.3 
E-donations to Educational Institutions A 200% CIT deduction for companies donating electronically to educational institutions, with the donated amount, whether in cash or property, can be claimed. This must not exceed 10% of net profit before deducting expenses for public charity, public benefits, or education and sports costs under Section 65 Ter (3)(b) of the Revenue Code.4 
E-donations to the Innovation and Research Development Fund A 200% CIT deduction for companies making electronic donations to support the Innovation and Research Development Fund, with the donated amount, whether in cash or property, can be claimed. This must not exceed 10% of net profit before deducting expenses for public charity, public benefits, or education and sports costs under Section 65 Ter (3)(b) of the Revenue Code.5 

1 Royal Decree No. 760 

2 Royal Decree No. 761 

3 Royal Decree No. 766 

4 Royal Decree No. 768 

5 Royal Decree No. 770 

 

Deductions available Deduction amounts 
E-donations to the Red Cross Society or foundations A 200% CIT deduction for companies donating electronically to the Thai Red Cross Society or foundations, with the donated amount, whether in cash or property, can be claimed. This must not exceed 10% of net profit before deducting expenses for public charity, public benefits, or education and sports costs under Section 65 Ter (3)(b) of the Revenue Code.6 
E-donations to support sports A 200% CIT deduction for companies donating electronically to support sports, including the Sports Authority of Thailand, provincial sports committees, and sports associations, with the donated amount, whether in cash or property, can be claimed. This must not exceed 10% of net profit before deducting expenses for public charity, public benefits, or education and sports costs under Section 65 Ter (3)(b) of the Revenue Code.7 
Employment of ex-convicts 50% of expenses for hiring ex-convicts released within three years can be deducted, up to THB 15,000 per person per month.8 
Investment in machinery and software for automated systems 100% of expenses for investments in machinery and computer programs for automated systems are exempt from CIT, excluding repairs to restore them to their original condition.9 
Employment of highly skilled personnel A 50% CIT deduction for companies in target industries on salaries paid to highly skilled employees in science, technology, engineering, or mathematics, can be claimed, up to THB 100,000 per month per person.10 
Enhancing employee’s development 150% CIT deduction for expenses incurred when sending employees for education or training, or for providing training in accredited courses.11 
Digital Token Corporate Transfers CIT exemptions apply to revenues from transferring digital investment tokens under the Digital Asset Business Act, limited to the Investment Token portion of hybrid tokens.12 

6 Royal Decree No. 771 

7 Royal Decree No. 772 

8 Royal Decree No. 774 

9 Royal Decree No. 776 

10 Royal Decree No. 777 

11 Royal Decree No. 778 

12 Royal Decree No. 779 

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