End of Year 2025 tax update 2
Corporate Income Tax Exemption for Hotel Renovation and Improvement Expenditures
On December 29, 2025, the Royal Gazette published Royal Decree No. 800, granting a Corporate Income Tax (“CIT”) exemption to corporate entities operating hotel businesses in compliance with the Hotel Act for qualifying expenditures on the addition, alteration, extension, or improvement of buildings, including permanently attached decorations or furniture but excluding repairs to maintain the original condition.
Eligible expenditures incurred during the period from 29 October 2025 to 31 March 2026 qualify for an additional 100% deduction.
Qualifying Assets
- The buildings and/or decorations or furniture permanently attached to buildings (the “assets”), which used for hotel businesses operated in accordance with the Hotel Act.
- The assets must be depreciable under Section 65 Bis (2) of the Thai Revenue Code (“TRC”) and must be acquired and ready for use on or before 31 March 2026 and located in Thailand.
- The assets must not be entitled to any other tax incentives in respect of the same asset under any other Royal Decree issued pursuant to the TRC, whether in whole or in part.
- The assets must not be used for the CIT exemption under Investment Promotion Act, National Competitiveness Enhancement for Targeted Industries Act, and Eastern Economic Corridor Act, whether in whole or in part.
Other Key Conditions
- The company is required to prepare a document of the investment and a disbursement budget and submit the notification to the Director-General of the Revenue Department.
If the corporate entity fails to comply with the rules, procedures, and conditions prescribed by the Director-General, the CIT deduction under this Royal Decree will cease. Previously deducted amounts must be included in net profit for that period, except when the asset has been sold, destroyed, or lost; in such cases, the deduction ends in the period of the event without requiring a reversal.
As of the publication of this tax update, the Director-General’s implementation guidelines have not yet been issued.
Further details are available at the following link:
https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dc800.pdf
This update is for general guidance only and should not be relied upon for specific tax matters. Professional advice should be obtained for application to your particular circumstances.