Asset Depreciation: Turning Investments into Tax Savings

When your company buys a large asset—like a fleet of delivery trucks, office furniture, or computer servers—you don't deduct the cost all at once. Instead, you use Depreciation to spread the tax benefit over several years.

 

Standard Thai Depreciation Rates

The Revenue Department sets specific maximum rates for different asset types:

• Computers & Software: 33.33% per year (Fully depreciated in 3 years).
• Vehicles: 20% per year (5 years).
• Furniture & Office Equipment: 20% per year (5 years).
• Buildings (Permanent): 5% per year (20 years).

 

Immediate Deductions for SMEs

If your company is an SME (less than 5 million THB capital and 30 million THB revenue), you may be eligible for accelerated depreciation. For example, you might be able to deduct 40% of a computer's cost in the very first year.

 

The Strategic View

Asset depreciation is a "non-cash" expense. It lowers your taxable profit on paper, saving you CIT, without requiring you to spend more money this month. As you review your 2025 numbers, ensure your Asset Register is accurate so you aren't missing out on these automatic deductions.

 

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Related Service: Accounting & Tax Compliance — Management of your fixed asset register and depreciation schedules.