The government has approved tax measures to support the use of large commercial electric vehicles (EVs) by businesses.
According to Deputy Finance Minister Julapun Amornvivat, Thursday’s cabinet meeting approved in principle a draft emergency decree that offers tax measures to promote the use of large commercial EVs.
The key provision of this measure is a corporate income tax exemption for companies or juristic partnerships for income equivalent to their expenses incurred when investing in large commercial EVs (such as electric buses or trucks).
This exemption applies from the date of cabinet approval in principle until Dec 31, 2025.
Expenses for investments in large commercial EVs that are manufactured or assembled in Thailand can be deducted at twice the actual cost.
Expenses for investments in fully assembled and imported large commercial electric vehicles can be deducted at 1.5 times the actual cost.
This measure was proposed by the Finance Ministry.
To qualify for the corporate income tax exemption, companies or juristic partnerships must prepare an investment project, a payment plan, and details for the large commercial EVs.
They must also report this information to the director-general of the Revenue Department, following the criteria, procedures, conditions and timelines specified in the announcement.
Regarding the conditions and qualifications for the commercial EVs, they must meet the legal requirements of the Department of Land Transport, be newly manufactured, and must not be used in activities that already receive corporate income tax exemptions under investment promotions. They must also enhance the national competitiveness of targeted industries, or Eastern Economic Corridor development, either in full or in part.
According to the ministry, this measure is expected to support the adoption of 10,000 commercial EVs, comprising 6,000 electric buses and 4,000 electric trucks.
