Tax Exemption For Carbon Credit Sales Under T-VER

The Royal Decree on Revenue Exemption (No. 760) B.E. 2566 (2023) issued by virtue of the Revenue Code has been issued for supporting and motivating the private sector to carry out the implementation of greenhouse gas emission reduction.

In line with Chapter 3 Part 3 Title 2 of the Revenue Code, this royal decree exempts companies or juristic partnerships from collecting corporate income tax on the profit generated from domestic carbon credit sales made through the Thailand Voluntary Emission Reduction Program (T-VER) governed by the Thailand Greenhouse Gas Management Organization (TGO).

The exemption will remain valid for three fiscal years or until 31 December B.E. 2570 (2027). The first fiscal year will begin on the date when TGO issues the participants with their carbon credit sales certification.

This royal decree has been published in the Gazette on 19 March B.E. 2566 (2023) and will be effective from the date after publication in the Gazette until 31 December 2570 (2027).