The Thai Cabinet approved a royal decree on 27 March 2025, offering corporate income tax deductions to encourage investment in commercial electric vehicles (EVs), such as electric buses and trucks. The tax relief will be available until 31 December 2025.
Under the new initiative, companies investing in EVs manufactured or assembled in Thailand can deduct costs at double the actual amount, while those investing in fully imported EVs can claim a 1.5 times deduction. To qualify, businesses must submit an investment proposal and payment schedule, ensuring the vehicles meet Department of Land Transport standards and are newly produced. The vehicles must not already benefit from other corporate income tax exemptions.
Additionally, the Cabinet noted a proposal from the Electric Vehicle Policy Committee’s meeting on 21 February to expand EV support measures under phase 2 (EV 3.5). This expansion would include passenger vehicles with up to 10 seats, aligning them with other passenger vehicle specifications and subsidies.
