Cabinet approves extension of tax measures to end of 2027 to promote adoption of electronic tax systems

The Thai Cabinet has approved proposals from the Ministry of Finance to extend tax measures to promote businesses to invest in electronic tax systems that expired on 31 December, 2025.  

The Cabinet approved a draft royal decree to grant an additional deduction for corporate income tax purposes to companies or juristic partnerships from January 1, 2026 to December 31, 2027 for the following expenses:  

1 Investment in e - Tax Invoice & e - Receipt systems  

2 Investment in e - Withholding Tax system  

3 Expenses incurred from service providers from using the e - Tax Invoice, e - Receipt and e - Withholding Tax systems.  

4 Expenses for the use of information system evaluation services provided by service providers who prepare or submit electronic data, paid to the Electronic Transactions Development Agency (ETDA).  

1% withholding tax rate extended to 31 December 2027 

A draft Ministerial Regulation was also approved to extend the tax measures to promote the use of the e - Withholding Tax system by reducing withholding tax rates from 5%, 3%, and 2% to 1% for payments of assessable income to legal entities (excluding foundations or associations) and individuals through the e - Withholding Tax system from January 1, 2026 to December 31, 2027.