Depreciation Allowance for Energy Saving Assets

The Thai Revenue Department has announced that energy saving assets will receive an additional 25% depreciation allowance (i.e. 125% depreciation on the acquisition cost). This is granted as a tax deduction for the computation of both personal and corporate income tax.

Keywords: Corporate Income Tax, Personal Income Tax, Tax Allowance, Depreciation, Thailand, Revenue Department

The assets include equipment or machinery which contribute to energy saving. The assets must meet the following criteria:

  • Never have been previously used;
  • Purchased and ready to be used during the period 1 January 2011 to 31 December 2012;
  • Subject to a rate of depreciation that reflects a useful life of not less than 5 years; and
  • Not used for R&D, used by a company receiving BOI privileges or used by a company in the process of applying for promotional privileges from the government sector.

Revenue Department announcement: