Year-end corporate income tax review: Deductions and incentives taxpayers should not miss
22 June 2026
As companies prepare their annual corporate income tax return, they should revisit their deductible expenses and assess whether any special tax deductions, allowances, or exemptions may be available.
For companies with an accounting period ending 31 December 2025, the annual corporate income tax return, Form P.N.D. 50, must generally be filed within 150 days from the end of the accounting period. Where the return is filed electronically, the filing deadline is extended to 8 June 2026.
A timely review of available deductions and incentives may help taxpayers reduce their taxable profits and manage their overall corporate income tax position more efficiently.
General deductible expenses
Under the Thai Revenue Code, expenses incurred wholly and exclusively for business purposes may generally be deductible for corporate income tax purposes, subject to the relevant conditions and limitations.
Common deductible expenses include, among others:
ordinary and necessary business expenses;
interest expenses, except interest on capital reserves or funds of the company;
qualifying donations, generally capped at 2% of net profits;
provident fund contributions;
entertainment expenses, capped at 0.3% of the higher of gross revenue or paid-up capital at the end of the accounting period, but not exceeding THB 10 million; and
bad debts written off in accordance with the criteria prescribed under the relevant Ministerial Regulations, including Ministerial Regulation No. 186 and Ministerial Regulation No. 374.
Taxpayers should ensure that sufficient supporting documents are maintained and that the relevant tax conditions are satisfied, particularly for expenses subject to specific deductibility rules or caps.
Special deductions, exemptions, and tax incentives
In addition to general deductions, corporate taxpayers should also consider whether they are eligible for any special deduction or corporate income tax exemption programmes. These incentives are subject to specific conditions, prescribed periods, and, in some cases, prior notification or registration requirements.
| Programme | Incentive period | Tax incentive |
| Sale of carbon credits | 20 March 2023 – 31 December 2027 | A 100% corporate income tax exemption is granted on profits derived from the sale of carbon credits under the voluntary greenhouse gas reduction programme for three consecutive accounting periods. |
| Investment in Special Economic Zones (SEZs) | 10 accounting periods from the accounting period in which the incentive is claimed | A reduced corporate income tax rate of 10% applies to net profits derived from targeted business activities carried out within SEZs, subject to registration and compliance with the prescribed conditions. |
| Employment of high-potential Thai professionals | 25 March 2025 – 31 December 2029 | A 150% deduction is available for salary expenses paid to eligible Thai professionals returning to work in targeted industries, subject to prior notification to the Revenue Department and other prescribed conditions. |
| Donations to the Knowledge Management and Development Office (Public Organization) | 1 January 2025 – 31 December 2026 | A 200% deduction is available for eligible donations made through the e-Donation system, capped at 10% of net profits. |
| Donations to the Thai Red Cross Society or medical and public health foundations | 1 January 2025 – 31 December 2027 | A 200% deduction is available for qualifying donations made through the e-Donation system, capped at 10% of net profits. |
| e-Donations to temples and eligible charitable or public benefit organisations | From 1 January 2026 onwards | A 100% deduction is available for qualifying donations made through the e-Donation system to temples and eligible charitable or public benefit organisations, subject to the relevant caps, including 2% of net profits for public charity purposes and an additional 2% for education or sports purposes. |
| Digital transformation incentive for SMEs | 24 June 2025 – 31 December 2027 | A 200% deduction is available for qualifying digital expenses, such as the purchase or use of software, hardware, smart devices, or digital services, excluding computer equipment. The expenses must be sourced from DEPA-registered providers and the tax benefit is capped at THB 300,000, subject to the prescribed conditions. |
| Hotel renovation incentive | 29 October 2025 – 31 March 2026 | A 200% deduction is available for qualifying hotel renovation expenses, including additions, alterations, expansions, or improvements to hotel related assets. Expenses incurred merely for repairs or maintenance to maintain existing conditions are excluded. |
Key takeaway
Before filing the annual corporate income tax return, taxpayers should perform a final review of their expenses, supporting documents, and available tax incentives. Particular attention should be given to incentives that require e-donation records, prior notification, registration, or evidence that the expenses meet the prescribed criteria.
A proactive review may help companies reduce unnecessary tax costs, avoid missed deduction opportunities, and improve tax compliance readiness before the filing deadline.
Note: Filing deadline assumes the company has a 31 December 2025 accounting year-end and files electronically through the Revenue Department e-filing system.
Want to know more?
Naritsaporn Tanapoonsin Tax Partner - Bangkok
Pongphan Narasin Director - Taxation Practice - Bangkok
Parin Supsavaipol Tax Director - Taxation Practice - Bangkok
