Thailand’s Revenue Department has prescribed the rules, procedures and conditions for income tax exemption on income equal to expenditure on certified high-efficiency machinery or equipment, or energy conservation materials or equipment, covering investments made between 3 March 2026 and 31 December 2028.
Thailand’s Revenue Department has issued Notification of the Director-General of the Revenue Department Regarding Income Tax (No. 471), setting out how individuals and companies or juristic partnerships can claim an income tax exemption on energy-saving investment.
The Notification was issued on 30 September 2026 under Section 5 of the Royal Decree Issued under the Revenue Code Governing Tax Exemption (No. 805), B.E. 2569 (2026).
The exemption amounts to 50% of the income equal to the expenditure incurred on the investment. The machinery, equipment, materials or devices must have been certified with a five-star energy efficiency label by the Department of Alternative Energy Development and Efficiency or the Electricity Generating Authority of Thailand. They must not have been previously used, must be located within the Kingdom of Thailand, and must qualify for depreciation and wear and tear allowances under Section 65 bis (2) of the Revenue Code.
Investment expenditure must arise from a contract, purchase order, work order or similar agreement entered into, with payment made, between 3 March 2026 and 31 December 2028. The assets must be acquired and ready for use for their intended purposes by 31 December 2028.
Companies or juristic partnerships liable to corporate income tax must claim the exemption in the accounting period in which depreciation or wear and tear allowances begin to be deducted. Individuals must be liable to personal income tax under Section 48 (1) of the Revenue Code and file a return calculating expenses on the basis of actual necessity and reasonableness. They must claim the exemption in the tax year in which the assets are acquired and become ready for use.
Supporting evidence must be an Electronic Tax Invoice issued by a VAT-registered seller or service provider included in the list announced under Clause 12 of Ministerial Regulation No. 384 (B.E. 2565 (2022)).
The invoice must show the tax identification number of the income recipient who made the investment. It must also state that the goods are certified with a five-star energy efficiency label, for example, with the wording “Five-Star Energy Efficiency Label” or similar. Proof of investment within the specified period must be provided to the assessment officer.
Taxpayers who have claimed the exemption but fail to comply with the conditions will lose the entitlement. The exempted income must then be included in the calculation of personal income tax, or added to revenue for the calculation of net profit subject to corporate income tax. Taxpayers who file an amended return for the relevant tax year or accounting period will also be liable to a surcharge under Section 27 of the Revenue Code.
The Notification takes effect from 3 March 2026.
The exception is the second paragraph of Clause 2 (5), on the statement required in Electronic Tax Invoices, which applies to invoices issued on or after the date of the Notification. The measure gives eligible investors a defined window to claim relief on certified energy-saving assets, provided the documentary conditions are met.
