Tax Newsletter MARCH 2026

Tax Newsletter

Dharmniti Law Office Co., Ltd.

Issue No. 176 March 2026

Tax Law Updates

     1.Exemption of corporate income tax (“CIT”) equivalent to expense paid for the purchase, hire of work, or service fees for computer programs, hardware or smart devices, and the use of digital services

     The Royal Decree issued under the the Revenue Code (“TRC”) regarding the tax exemption (Issue No. 802) B.E. 2569 (2026), prescribing the exemption of corporate income tax for Small and Medium-sized Enterprises (juristic partnerships and companies) (SMEs) is equal to 100% of the expenses paid for the purchase, hire of work, or service fees relating to computer programs, hardware, or smart devices, and the use of digital services, excluding computers. Such expenses shall be paid to the sellers, contractors, or service providers registered in the Thailand Digital Catalog of the Digital Economy Promotion Agency (“DEPA”). This tax exemption shall only apply to applicable expenses not exceeding 300,000 Baht which are incurred during the period from 24 June 2025 to 31 December 2027, subject to the criteria, procedures, and conditions prescribed by the Director-General.

     For more details, please see: https://bit.ly/4sL80Gc

     2.Prescribed deductible expenses from the assessable income under Section 40 (6) of TRC

     The Royal Decree issued under TRC regarding Prescribed Deductible Expenses from Assessable Income (Issue No. 803) B.E.2569 (2026) prescribes deductible expenses at the rate of 60% for income derived from the liberal professions of arts of healing, and fine arts. Income derived from other liberal professions is entitled to a deduction at the rate of 30%, unless the taxpayer is able to provide evidence to the assessment official proving that the actual expenses incurred were higher, in which case the deduction shall be allowed to the extent that such expenses are necessary and reasonable.

     For more details, please see: https://bit.ly/47yD5Va

     3.Exemption of corporate income tax for expense paid for organising domestic training seminar

     The Notification of the Director-General of Revenue Department regarding Income Tax (Issue No. 467) regarding Prescribed Criteria, Procedures, and Conditions for the Exemption of Corporate Income Tax (“CIT”) for Expenses Paid for Organising Domestic Training Seminars prescribes an exemption of CIT for companies or juristic partnerships in respect of expenses paid for organising domestic training seminars conducted during the period from 29 October 2025 to 15 December 2025, subject to criteria, procedures and conditions as prescribed by the Director-General.

     For more details, please see:  https://bit.ly/4bWZbSt

     4.Extension of the deadline for additional tax remittance through the electronic withholding tax (E-Withholding tax) system

     The Notification of the Ministry of Finance regarding the Extension of the Deadline for Additional Tax Remittance through the Electronic Withholding Tax (e-Withholding Tax) System dated 6 February B.E.2569 (2026), prescribes an extension of the deadline for tax remittance made through the electronic withholding tax system conducted during the period from 1 January B.E. 2569 (2026) to 31 March B.E. 2569 (2026), such that the deadline shall be extended until 30 April B.E. 2569 (2026).

     For more details, please see:  https://bit.ly/4v4VL97

Tax News Updates

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Highlighted Supreme Court Judgment

The Supreme Court Judgment No. 4498/2543

Between                  Company T.                                 Plaintiff

                     Revenue Department                     Defendant

Subject                    Discount expense granted to customers

Disputed issue         : Can a discount expense granted to customers be regarded as a deductible expense for the purpose of calculating net profit?

Abbreviated judgment: The Plaintiff operated a business relating to the leasing of machinery used for the production of food containers and packaging. The Plaintiff leased such machinery from a company in Singapore and subsequently subleased it to the customers in Thailand. The customers subleased the machinery from the Plaintiff to produce containers for milk and fruit products.

The Plaintiff charged the sublease fees based on the number of boxes produced and the sale of products packaged in such boxes, which were recorded monthly by the machine meter. In this regard, the Plaintiff granted discounts to its customers as a sales incentive of the company. The criteria for granting such discounts were clearly determined and generally applied to all customers of the Plaintiff. The details of the customer discount are as follows:

     (1) Customers who package and sell more than 5 million boxes of the company’s products shall be granted a discount at the rate of 2% of the raw material price.

     (2) Customers who package and sell more than 75 million boxes of the company’s products shall be granted a discount at the rate of 3% of the raw material price.

     As for the discount granted, if the customer was able to package and sell the product in a greater volume of products, then the Plaintiff would derive increased income. Therefore, the discount granted by the Plaintiff to the customer in accordance with such criteria would constitute expenses incurred for the purpose of the Plaintiff’s business operations, and thus are directly related to the Plaintiff’s business. Accordingly, the Court ruled that Plaintiff was entitled to regard such discount expenses as deductible expenses for the calculation of net profit, and such expenses were not to be treated as prohibited expenses under Section 65 Ter (13) of TRC.

     Furthermore, the Court ruled that the mere fact that the Plaintiff itself did not notify all of its customers of the discount plan did not result in the discount granted being deemed an expense of a personal, gift, or charitable nature in accordance with Section 65 Ter (3) of TRC, which would otherwise be regarded as a non-deductible expense for the net profit calculation.

Legal opinion : The writer agrees with the aforementioned Supreme Court Judgment. Non-deductible expenses that are not allowed to be deducted in accordance with Section 65 Ter (3) and (13) of the TRC shall have the nature of a personal expense or an expense that is not for the purpose of making profits or for the business specifically. The consideration as to whether an expense is of a personal nature, or has no purpose for making profits or for the specific business, is the relationship between the expense and the business operation, as well as the necessity and propriety of the operation. Given the fact that the discount was granted as a sales incentive, it caused the Plaintiff to earn more income. Moreover, the Plaintiff had clearly established criteria for granting the discount, which were applied to all of the Plaintiff’s customers in general. The discount granted to the customers shall thus be deemed an expense for the Plaintiff’s business operation. Moreover, despite the fact that the Plaintiff did not notify all of its customers of the discount plan, such discount shall not be deemed as an expense of a personal, gift, or charitable nature, which is prohibited under Section 65 Ter (3) and (13) of the TRC.

     Please note that the above legal commentary only represents the writer’s legal opinion regarding the case. Tax law requires factual analysis, and the results of a legal interpretation of the same legal provision can vary based on different points of view. The writer presents this Supreme Court judgment in order for the reader to gain a deeper understanding of Thailand’s tax laws so that they can pay tax correctly.

Munja Boonchuay