Thailand Introduces New Personal Income Tax Exemptions to Boost Domestic Tourism and the Visual Arts Sector
- leowatanabe5
- 4 days ago
- 4 min read
The Ministry of Finance has published two new Ministerial Regulations that introduce personal income tax (PIT) exemptions on November 19th, 2025. The visual arts purchase deduction (effective from January 1st, 2025 through December 31st, 2027) allows individual taxpayers to deduct up to THB 100,000 annually for qualifying art acquisitions. The hotel accommodation deduction (effective from October 29th to December 15th, 2025) provides up to THB 30,000 in deductions for domestic travel to secondary tourist destinations.
Foreign companies operating in the hospitality and creative sectors, and all foreign companies managing expatriate personal income tax filings, are urged to understand the mechanics and documentation requirements to benefit from these incentives.
Hotel Accommodation Tax Deduction (October 29th to December 15th, 2025)
The hotel accommodation tax deduction for secondary provinces only applies to expenses incurred during the specific 48-day period from October 29th to December 15th 2025. Travel outside these dates receives no benefit regardless of destination.
Deduction Structure:
First Tier (up to THB 10,000): Deductible for expenses in all provinces, supported by either paper tax invoices or electronic tax invoices.
Second Tier (additional THB 10,000): Deductible only in non-secondary provinces when supported by electronic tax invoices, bringing the total to THB 20,000
Secondary Province Multiplier (1.5x): Expenses in designated secondary tourist provinces qualify for a 1.5x multiplier, allowing deductions up to THB 30,000 total
The two-tier structure incentivizes businesses to adopt electronic invoicing systems and encourages taxpayers to utilize digital documentation.
Eligible Expenses: The expenses that are eligible for deductions are hotel accommodation fees, certified Thai Homestays (registered under the Department of Tourism's Thai Homestay program), registered non-hotel accommodation facilities, and restaurant service charges. All service providers must be VAT-registered and capable of issuing compliant documentation.
Secondary Tourist Provinces: The 1.5x deduction multiplier applies to 55 designated secondary tourist provinces. These include:
Northern Region (8): Chiang Rai, Lampang, Lamphun, Mae Hong Son, Nan, Phayao, Phrae, Uttaradit
Northeastern Region (19): Khon Kaen, Udon Thani, Nakhon Ratchasima, Buriram, Surin, Sisaket, Ubon Ratchathani, Yasothon, Chaiyaphum, Roi Et, Maha Sarakham, Kalasin, Sakon Nakhon, Nakhon Phanom, Mukdahan, Nong Khai, Loei, Bueng Kan, Nong Bua Lamphu
Central Region (9): Ayutthaya, Suphan Buri, Nakhon Pathom, Ang Thong, Sing Buri, Chai Nat, Lop Buri, Saraburi, Nakhon Nayok
Eastern Region (5): Chanthaburi, Trat, Prachinburi, Sa Kaeo, Rayong
Western Region (4): Tak, Kanchanaburi, Ratchaburi, Phetchaburi
Southern Region (10): Nakhon Si Thammarat, Surat Thani, Krabi, Phang Nga, Trang, Satun, Ranong, Chumphon, Phatthalung, Songkhla
The government aims to increase the share of national tourism revenue from secondary provinces from 20% to 30% making this deduction part of a broader strategy to redistribute tourism benefits across Thailand.
Visual Arts Purchase Deduction (2025-2027)
The visual arts purchase deduction incentive is available from January 2025 until December 2027 for a three-year period. Individual taxpayers in Thailand can deduct up to THB 100,000 per tax year for qualifying visual artwork purchases.
Qualifying Artwork Types: Painting, sculpture, printmaking, and new media created within the framework of visual arts. The definition is relatively specific, as the artwork must be recognized as fine art, not decorative items or mass-produced prints. Only artworks created by three artist categories qualify for the deduction. Purchases from unqualified artists receive no tax benefit, regardless of artistic merit or sales price.
National Artists (Visual Arts): Thailand's highest artistic honor, conferred by the Ministry of Culture to veteran artists who have made exceptional lifetime contributions to Thai fine arts.
Silpathorn Award Recipients (Visual Arts): Mid-career contemporary artists aged 30-50 recognized by the Office of Contemporary Art and Culture (OCAC) for demonstrated artistic excellence and contributions to Thai culture.
Artists Registered with the Office of Contemporary Art and Culture: A broader category encompassing practicing contemporary artists who have registered with OCAC.
Documentation Required: Taxpayers who wish to obtain the deduction must obtain and retain full tax invoices or receipts containing the taxpayer's name, address, and Tax Identification Number. These documents support deduction claims on annual personal income tax returns (Form Por.Ngor.Dor. 90 for employees or 91 for independent professionals). HR departments should flag this opportunity during years when expatriate staff indicate interest in art acquisitions, as the THB 100,000 annual deduction is substantial for mid to upper-level expatriate compensation levels.
Personal Income Tax Implications
Expatriate employees who are Thai tax residents can claim these deductions on their personal income tax returns (Form 90 or 91). These deductions effectively reduce the taxable income in the tax year in which the expenses are incurred (for example 2025 tax year for the October to December 2025 hotel expenses that must be filed by March 31st 2026). All individuals claiming these deductions must retain supporting documentation for tax audit purposes. The Revenue Department maintains the authority to request verification of deduction claims up to five years after return filing.
Contact us at contact@bizwings.co to find out more. BizWings offers all the business essentials for foreign SMEs to operate smoothly in Thailand, including their expats. We handle expats´ visa requirements, payroll, and personal income tax returns.
