Thailand introduces tax incentives for businesses investing in large commercial electric vehicles (EVs) like buses and trucks, promoting eco-friendly transportation solutions.
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| Thailand’s new tax breaks aim to accelerate the adoption of electric buses and trucks, contributing to the country’s green transportation and sustainability goals. Image Courtesy: BP |
Bangkok, Thailand – March 29, 2025:
The government of Thailand has approved a groundbreaking initiative to encourage businesses to invest in large commercial electric vehicles (EVs), offering significant tax incentives to support the transition to greener transportation. Deputy Finance Minister Julapun Amornvivat announced the approval of this new policy during Thursday's cabinet meeting, outlining a draft emergency decree aimed at boosting the adoption of electric buses and trucks, reads a Bangkok Post report.
Under the new measure, companies and juristic partnerships will receive a corporate income tax exemption for expenses incurred when investing in commercial EVs. This includes electric buses and trucks, which are expected to play a crucial role in reducing emissions and supporting sustainable transport across the country. The tax exemption will be applicable until December 31, 2025.
One of the key features of the decree is that businesses investing in commercial EVs manufactured or assembled in Thailand will be allowed to deduct expenses at twice the actual cost. For fully assembled and imported electric vehicles, the deduction will be 1.5 times the actual cost.
To qualify for the tax breaks, companies must submit detailed investment projects and payment plans for the electric vehicles they plan to purchase. Additionally, the vehicles must meet the legal requirements of Thailand’s Department of Land Transport and be newly manufactured. They must not already be used in activities that benefit from other corporate income tax exemptions or investment promotion schemes.
The new measures are part of Thailand's broader efforts to promote the adoption of sustainable technologies and enhance the national competitiveness of targeted industries, particularly in the Eastern Economic Corridor. The government aims to support the introduction of 10,000 commercial electric vehicles, including 6,000 electric buses and 4,000 electric trucks, by 2025, which will significantly contribute to the country's environmental goals.
This tax incentive program aligns with global trends of reducing carbon emissions and promoting cleaner, more efficient transportation solutions, making Thailand an attractive destination for green investments in the commercial EV sector.