Cabinet approves a two-year extension of tax measures allowing enhanced deductions for electronic tax system investments and a reduced 1% withholding tax rate for eligible payments made through the e-Withholding Tax system.
Thailand’s Cabinet has approved a two-year extension of tax measures designed to encourage wider adoption of the country’s electronic tax system, including incentives for investment in electronic tax infrastructure and continued preferential rates under the e-Withholding Tax system.
The decision, approved on 16 June 2026, follows proposals by the Ministry of Finance through the Revenue Department to extend existing tax incentives under the Revenue Code until 31 December 2027.
Enhanced deductions for electronic tax system investment
Under a draft Royal Decree issued under the Revenue Code on tax exemptions, companies and juristic partnerships will continue to receive tax incentives for investment in the electronic tax system.
Eligible taxpayers may deduct expenses related to investment and service fees for the e-Tax Invoice & e-Receipt system and the e-Withholding Tax system. Expenses incurred for information system assessments carried out by service providers and paid to the Electronic Transactions Development Agency (ETDA) will also qualify for a deduction equal to two times the actual expense incurred.
The measure applies to qualifying expenses incurred from 1 January 2026 through 31 December 2027.
Reduced withholding tax rate maintained
The Cabinet also approved a draft Ministerial Regulation under the Revenue Code on income tax extending the incentive for the e-Withholding tax system.
Under the measure, withholding tax rates of 5%, 3% and 2% will continue to be reduced to 1% for assessable income paid through the e-Withholding Tax system.
The reduced rate will apply from 1 January 2026 to 31 December 2027.
Revenue Department cites business benefits
According to the Revenue Department, the extended measures are intended to support the continued adoption of digital tax administration by reducing costs associated with preparing, managing and storing tax documents, while easing tax compliance obligations for businesses.
The Department said the incentives are also expected to encourage more businesses to become service providers for the electronic tax system, making digital tax services more accessible. In addition, maintaining the reduced withholding tax rate is expected to improve business cash flow, support greater circulation of funds and contribute to economic activity.
This announcement was made on 16 June 2026.
