A 50% additional deduction that applies in addition to the standard tax depreciation that can be claimed on new capital assets will apply through 31 December 2017. However, the additional deduction has been reduced to 50% for expenditures made during 2017.
The additional 50% additional deduction applies:
It is expected that the criteria and write-off period for eligible assets, as well as all the other conditions under Royal Decree No 604 and related notifications, will also apply to the extension of the tax incentive. This will be clarified once a new Royal Decree is issued.
In May 2016, the Thai government issued Royal Decree No 604 to promote and incentivize capital spending on certain eligible assets, provided the expenditure in respect of such assets was incurred during the period 3 November 2015 through 31 December 2016. On 24 January 2017, the Cabinet provided approval to extend this tax incentive for one more year. Therefore, the expenditure incurred on eligible assets during the period 1 January 2017 - 31 December 2017 will qualify for the additional deduction; however, the deduction has been reduced from 100% to 50%.
Read a January 2017 report prepared by the KPMG member firm in Thailand
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