Corporate tax incentives approved to promote the use of e-buses and e-trucks

Corporate tax incentives approved to promote the use of e-buses and e-trucks:

The Thai Cabinet has approved in principle a draft Royal Decree to be issued under the Revenue Code granting corporate income tax deductions to promote the use of large commercial electric vehicles.

The draft royal decree was proposed by the Ministry of Finance, in accordance with the resolution of the National Electric Vehicle Committee.

Companies or juristic partnerships would be eligible to claim a 100% tax deduction (effectively 2 times) for the purchase of large commercial electric vehicles (electric buses and electric trucks) that are produced or assembled in Thailand, while a 50% deduction (effectively 1.5 times) would be available for the purchase of such electrical vehicles that are fully assembled and imported. The right to claim a tax deduction would be subject to criteria, methods and conditions announced by the Director-General of the Revenue Department.

The electric buses or electric trucks must comply with certain conditions and qualifications, such as:

1. The vehicle must be able to apply to be licensed to operate to transport passengers or transport animals or objects under the Land Transport Act;
2. The vehicle must never have been used before;
3. The vehicle must not have received any tax benefits under another royal decree issued under the Revenue Code;
4. It must be a vehicle that is depreciable under Section 65 bis (2) of the Revenue Code and must have been acquired and in a condition ready for use as intended by 31 December 2025;
5. It is not a vehicle used in a business that is exempt from corporate income tax under the law promoting investment, the law increasing the country's competitiveness for target industries, or the law on the Eastern Special Development Zone, whether in whole or in part.

This measure is expected to cover 10,000 vehicles (6,000 buses and 4,000 trucks), resulting in an estimated tax loss of Baht 10.6 billion. However, it is also anticipated to drive local production and employment growth in the EV sector while advancing Thailand’s goal of achieving zero-emission from vehicles.