Thailand Extends e-Tax Invoice and e-Withholding Tax Incentives to 2027 and Restores the 1% Withholding Rate for e-WHT Payments
Companies in Thailand can again claim two incentives for moving invoicing and withholding online until 31 December 2027. Royal Decree No. 808 restores a 200% deduction for spending on e-tax systems. Ministerial Regulation No. 402 brings back a 1% withholding rate for payments made through e-Withholding Tax. For foreign-owned SMEs, the second measure will matter more day to day as it improves cash flow on every qualifying payment.
What the e-Tax Invoice and e-Withholding Tax systems are
Both systems are voluntary Revenue Department programmes. They change how tax documents and withheld tax reach the Revenue Department, not the tax rules themselves.
e-Tax Invoice and e-Receipt
VAT-registered businesses can issue tax invoices, receipts, debit notes and credit notes electronically. A valid e-Tax Invoice supports an input VAT claim just like a paper one.
There are two routes. The full route uses a digital signature and XML data, which the supplier reports to the Revenue Department by the 15th of the following month. The simpler e-Tax Invoice by Email route uses a time stamp from the Electronic Transactions Development Agency (ETDA) instead. It is open only to businesses with income of THB 30 million or less a year.
In practice, most foreign SMEs under that threshold can start with the email route at little cost.
e-Withholding Tax
Thai companies normally withhold tax when they pay suppliers for services, rent or advertising. They then file a monthly PND 3 or PND 53 return and issue a withholding tax certificate (the “50 Tawi”).
e-Withholding Tax (e-WHT) moves this work to the bank. Acting as the payer’s agent, a participating bank pays the supplier and remits the withheld tax to the Revenue Department within 4 working days. The payer remains responsible for withholding the correct amount.
The bank’s confirmation replaces the certificate. These payments also drop out of the payer’s manual PND 3 and PND 53 filings.
What changed in October 2026
The previous incentives expired on 31 December 2025. For most of 2026, companies had neither benefit. The Cabinet approved a renewal on 16 June 2026 and the implementing laws followed in October.
Royal Decree No. 808 (B.E. 2569) was published in the Royal Gazette in October 2026. It grants the 200% deduction for qualifying e-tax system spending.
Ministerial Regulation No. 402 (B.E. 2569) was published in the Royal Gazette in October 2026. It sets the 1% withholding rate for e-WHT payments.
Both instruments cover 1 January 2026 to 31 December 2027. Spending and payments made earlier this year are therefore covered.
The 200% deduction in practice
Royal Decree No. 808 exempts company income equal to the qualifying expense. In effect, the spend is deducted twice. Three types of cost qualify:
Software and hardware bought for the e-Tax Invoice and e-Receipt system
Investment in e-WHT systems used to remit tax
Fees paid to approved service providers for either system
Repair costs do not qualify for the 200% deduction.
A company that spends THB 200,000 on e-Tax Invoice software and service fees in 2026. It deducts the THB 200,000 as a normal expense and claims a further THB 200,000 exemption. The extra deduction saves THB 40,000 at the standard 20% corporate income tax rate.
Companies should document their spend now and confirm the procedure before filing their FY2026 return.
The 1% e-WHT rate in practice
Ministerial Regulation No. 402 sets a 1% withholding rate for payments made through e-WHT. It replaces the usual 5%, 3% and 2% rates. Payments to companies and individuals qualify while payments to foundations and associations do not. Common examples include:
Rent on buildings and other property, normally withheld at 5%
Service fees, professional fees and contract work, normally 3%
Advertising fees, normally 2%
The benefit falls mainly on the supplier. Withholding tax is a prepayment rather than a final tax. The total tax bill stays the same and only the timing of cash changes.
A Thai subsidiary pays a supplier a THB 100,000 service fee. At the normal 3% rate, it withholds THB 3,000 and the supplier receives THB 97,000. Through e-WHT, it withholds THB 1,000 and the supplier receives THB 99,000. The supplier keeps an extra THB 2,000 instead of waiting to recover it through its annual return. For service companies that are routinely over-withheld, this means fewer and smaller refund claims.
Practical steps for foreign companies
Foreign companies can act on both measures before they close FY2026.
Map qualifying spend. List e-tax software, equipment and service fees paid since 1 January 2026. Keep the invoices and proof of payment.
Choose the right e-Tax route. Companies with income under THB 30 million can use the email route. Larger ones need the full digital-signature route or a service provider.
Enrol for e-WHT. Set up the service with your main bank. Then ask key suppliers if they want to be paid this way.
Update the accounting setup. Separate e-WHT payments from PND 3 and PND 53 filings and from certificate runs.
BizWings (Thailand) Co., Ltd. provides outsourced accounting support to foreign SMEs in Thailand. Our real-time bookkeeping process lets us deliver a 10-day month-end close for our clients.
We also keep clients up to date on regulatory changes such as these. We can support their move to e-Tax Invoice and e-Withholding Tax. In practice, this means less reliance on paper documents and fewer manual withholding filings.
Comments