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Draft Laws on the Extension and Expansion of Tax Measures Supporting Electronic Tax Systems

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Draft Laws on the Extension and Expansion of Tax Measures Supporting Electronic Tax Systems

In the context of accelerating digital adoption worldwide, the Thai Revenue Department of the Ministry of Finance (the “RD“) is advancing Thailand’s digital transformation of tax administration and services by proposing two draft laws to the Cabinet on 16 June 2026. The Cabinet approved both draft laws in principle, following the affirmation of the Office of the National Economic and Social Development Council (NESDC), the Budget Bureau, and the Electronic Transactions Development Agency (the “ETDA“). The RD positions these draft laws as key mechanisms to reinforce the longstanding effort to promote electronic tax systems (the “e-Tax Systems”), encompassing e-Tax Invoice, e-Receipt, and e-Withholding Tax. The two draft laws are as follows:

Together, the two draft laws will broaden the scope of eligibility for tax incentives and extend the implementation period of existing tax measures relating to e-Tax Systems, as currently prescribed under the Royal Decree issued under the Revenue Code governing the Exemption from Revenue Taxes (No. 766) B.E. 2566 (2023) (the “Royal Decree No. 766”) and the Ministerial Regulations issued under the Revenue Code governing the Income Taxes (No. 389) B.E. 2566 (2023) (the “Ministerial Regulations No. 389”), respectively. In addition, the proposed drafts are designed to encourage greater cooperation from the private sectors — specifically, business operators acting as service providers of e-Tax Systems (the “Service Providers“) — by offering tax incentives to offset the costs associated with meeting the ETDA’s security standards and investing in the requisite electronic infrastructure. This is intended to reduce the financial burden on qualifying entities, simplify tax administration for taxpayers with limited familiarity with digital systems, and improve the overall efficiency of e-Tax Systems.

Tax Measures under Royal Decree No. 766

The measures promoting investment in e-Tax Systems were introduced under Royal Decree No. 766 and were applicable from 1 January 2023 to 31 December 2025. Companies or juristic partnerships that acted as Service Providers of e-Tax Invoice and e-Receipt services, e-Filing services, e-Stamp Duty services, or special account data collection services for electronic platforms were entitled to a corporate income tax exemption equivalent to twice the amount of qualifying investment expenses. Eligible expenses are divided into three main categories, each subject to specific terms and conditions:

  1. Expenses from investment in e-Tax Invoice and e-Receipt systems — comprising expenses incurred in the preparation of electronic data collection systems and the acquisition of software, computers, related electronic equipment, and other devices used to create, transmit, receive, or store such data. Excluded from this category are repair expenses for such equipment and expenses arising from electronic data operations that fall outside the scope of e-Tax Invoice and e-Receipt system services.
  2. Expenses from investment in e-Withholding Tax systems — comprising expenses incurred in the preparation of tax remittance systems and the acquisition of software, electronic certificate storage devices, computers, or other devices used for tax remittance. Repair expenses for such equipment are excluded.
  3. Fees for the use of e-Tax Invoice, e-Receipt, and e-Withholding Tax systems — comprising service charges or fees paid to Service Providers for the preparation or transmission of electronic data, electronic certificates, or electronic storage services for tax remittance through such systems.

Pursuant to the Royal Decree No. 766, assets or funds utilized under categories 1 and 2 above must satisfy all of the following criteria:

a. Must not have been previously used;
b. Must be eligible for depreciation deductions and must be acquired and available by 31 December 2027;
c. Must be located in Thailand;
d. Must be used in the business for not fewer than three consecutive accounting periods beginning from the first accounting period in which such assets or funds are acquired and available;
e. Must not be eligible for any other tax benefits under applicable law; and
f. Must not be eligible for tax exemptions, whether in whole or in part, under investment promotion law, the law on enhancement of competitiveness in target industries, or Eastern Economic Corridor (EEC) laws.

Draft Royal Decree and Key Amendments

Since the implementation of the tax measures under Royal Decree No. 766, Service Providers have faced increasing financial burdens arising from their legal obligation to comply with the ETDA’s security standards governing the management of electronic data received from taxpayers. These obligations entail additional costs for electronic data system audits and assessments conducted by the ETDA. According to data collected by the RD and other relevant authorities, such requirements have resulted in average annual costs of approximately THB 250,000 per Service Provider.

The Draft Royal Decree seeks to support Thailand’s digital transformation objectives while preserving the existing investment promotion framework, including the same terms, conditions, and exclusions established under Royal Decree No. 766. Accordingly, the draft law retains the three categories of eligible expenses described above. The key amendments introduced are: (1) an extension of the implementation period from 1 January 2026 to 31 December 2027, and (2) the introduction of a new fourth category of eligible expense, as follows:

  1. Fees for the use of information system audit and assessment services — comprising fees or service charges paid by a Service Provider to the ETDA for the audit and assessment of electronic data systems used in connection with the provision of e-Tax Invoice and e-Receipt services, e-Filing services, e-Stamp Duty services, or special account data submission services for electronic platform operators.

Under category 4, Service Providers will be entitled to a tax exemption equivalent to twice the amount of fees paid to the ETDA for information system audit and assessment services. This measure is designed to alleviate the financial burden arising from compliance requirements, encourage greater private-sector participation in the RD’s digital tax ecosystem, and ultimately enhance service quality for taxpayers and strengthen Thailand’s competitiveness in the digital economy.

Tax Measures under Ministerial Regulations No. 389

Under Ministerial Regulations No. 389, measures promoting the use of the e-Withholding Tax system were applicable from 1 January 2023 to 31 December 2025. These measures provided tax benefits in the form of reduced withholding tax and income tax rates for both juristic persons (excluding foundations and associations) and individuals making payments through the e-Withholding Tax system. Specifically, the applicable withholding tax rate was reduced from 5% to 3%, and the applicable income tax rate was reduced from 2% to 1%. The reduced income tax rates applied to the following categories of assessable income under the Revenue Code:

  1. Juristic persons (excluding foundations and associations) — income derived from employment duties or positions, including commission fees and bonuses; goodwill and royalty fees; rental income from assets; income from liberal professions; income from contracting services; and income from hire-of-work services, prizes from contests, competitions, or lucky draws, and other service income.
  2. Individuals — rental income from assets; income from liberal professions; income from contracting services; income from hire-of-work services, prizes from contests, competitions, or lucky draws, and other service income; and income of public entertainers resident in Thailand.

Draft Ministerial Regulations and Key Amendments

The measures implemented under Ministerial Regulations No. 389 have materially contributed to Thailand’s digital transformation and have significantly encouraged taxpayers — including businesses, foreign entities, and individuals — to manage their withholding tax and income tax obligations through the RD’s electronic platform. In recognition of this success, the RD has proposed a new Draft Ministerial Regulations to extend the application of these measures for an additional two years, from 1 January 2026 to 31 December 2027.

Pending the entry into force of the Draft Ministerial Regulations, the Ministry of Finance issued the Notification of the Ministry of Finance Regarding the Extension of the Deadline for Additional Fund Remittance through the e-Withholding Tax System, dated 6 February 2026. This notification serves as an interim measure to bridge the gap until the new regulations take effect, permitting taxpayers who made payments through the e-Withholding Tax system between 1 January and 31 March 2026 to remit any additional withholding tax by 30 April 2026, thereby preserving access to the reduced rates during the transitional period.

Summary and Key Takeaways

Businesses are advised to monitor the formal enactment of these draft laws to assess their eligibility for the extended tax incentives.

The RD has proposed two draft laws aimed at reducing compliance costs and encouraging greater private-sector participation in Thailand’s digital tax ecosystem.

The Cabinet, together with other relevant government authorities, has approved in principle both the Draft Royal Decree and the Draft Ministerial Regulations, which extend tax incentives for the use of e-Tax Systems through 31 December 2027.

The Draft Royal Decree introduces a new category of eligible expenses, allowing Service Providers to claim a tax exemption equal to twice the ETDA audit and assessment fees incurred.

Tax incentives under Royal Decree No. 766 for investments in, and the use of, e-Tax Systems — including e-Invoice, e-Receipt, and e-Withholding Tax — will continue under the extended regime.

The Draft Ministerial Regulations extend the reduced withholding tax and income tax rates applicable to qualifying payments made through the e-Withholding Tax system.

Pending the new regulations, the Ministry of Finance has issued an interim notification to preserve access to e-Withholding Tax incentives during the transitional period.

Author: Panisa Suwanmatajarn, Managing Partner.

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