Regulatory updates - Thailand

On September 14, 2025, the Royal Decree issued under the Revenue Code was published in the Thai Royal Gazette, extending the temporary reduction of the Value Added Tax (VAT) rate. The Thai Ministry of Finance, through the Revenue Department, had previously announced this measure on September 9, 2025. 

The decree reduces the VAT rate from 10 percent to 6.3 percent, or 7 percent including local taxes, for the sale of goods, provision of services, and imports. This reduction applies to all cases from October 1, 2025, until September 30, 2026. 

The continued VAT rate reduction aims to maintain and support national economic growth, facilitating the ongoing expansion of the Thai economy. 

On 17 September 2024, the Thai Revenue Department announced that the Cabinet (the Council of Ministers of Thailand) had extended the reduction of the standard VAT rate to 7% for another year until 30 September 2025.

The reasons for the continued reduction of the VAT rate are to relieve the tax burden on businesses and consumers and to ensure the Thai economy's targeted expansion.

The full press release is available here (in Thai).

Early this month, the Revenue Department published Ministerial Regulation No. 389 to encourage the use of e-Tax and e-withholding systems.

Businesses choosing to implement and continuously utilize those systems can have the following:

• Double deduction of cost on the investment in the e-Tax and e-withholding tax systems, including the fees paid to service providers;
• Withholding tax rate reduction of 1%.

The measures above apply from 1 January 2023 until 31 December 2025.