last updated 3/19/2026 10:50:59 AM

Tax Updates Q1 of 2026 #2

On 2 March 2026, the Royal Gazette published Royal Decree No. 805, which grants income tax incentives in two key areas: Solar power generation systems for residential use High-efficiency machinery or energy-saving equipment.

 

The measures apply to qualifying expenditures incurred between 3 March 2026 and 31 December 2028 and form part of the government’s broader policy to promote energy sustainability and support Thailand’s transition toward carbon neutrality and net-zero greenhouse gas emissions.

 

The key tax incentives are summarized below.

 

1. Tax Incentives for Individuals

 

Solar Rooftop System Installation (Personal Income Tax Deduction)

 

Individuals who install Solar power generation systems and related installation equipment at their residence during the period from 3 March 2026 to 31 December 2028 are eligible to claim a personal income tax deduction based on the actual cost of purchasing and installing the system, subject to a maximum deduction of THB 200,000.

 

Key conditions

 

• The system must be installed on the roof, rooftop, or any part of a residential building that can be occupied or utilized.
• It must be fully connected to the power grid of the Metropolitan Electricity Authority (MEA) or the Provincial Electricity Authority (PEA).
• Payments must be made to VAT-registered suppliers, and electronic tax invoices (e-Tax Invoices) must be issued.
• The same expenditure cannot be claimed under other tax incentive schemes.
• Additional rules, procedures, and conditions prescribed by the Director-General shall apply.

 

 

2. Additional Corporate Tax Deduction for Energy-Saving Machinery or Equipment

 

Investments in energy-saving machinery or equipment made between 3 March 2026 and 31 December 2028 qualify for a 150% corporate tax deduction, comprising the normal 100% depreciation and an additional 50% incentive deduction.

 

Key Conditions

 

• The machinery and equipment must be certified with Energy-Saving Label Level 5 by the Department of Alternative Energy Development and Efficiency.
• The payments or investments must be made to VAT-registered suppliers, and the tax invoices must be issued through the electronic tax invoice system.
• Businesses receiving incentives under the Thailand Board of Investment (BOI) or the Eastern Economic Corridor (EEC) are not eligible to claim this tax deduction incentive.

 

To qualify for the additional deduction, corporate entities must comply with the rules, procedures, and conditions prescribed by the Director-General.

 

Further details are available at the following link:

 

https://www.rd.go.th/fileadmin/user_upload/kormor/newlaw/dc805.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.