The new Royal Decree is enacted to offer the accelerated depreciation for tourism business operators. On the asset acquisition date, a tourism business operator may claim depreciation for the immovable property as defined in Article 4(5) of the Royal Decree No. 145 except vehicles at the rate of 60% of the cost of the asset that the tourism business operator purchases or takes transfer the ownership of the asset for the purpose of using in its own business.
For the remaining cost of the asset, the tourism business operator may claim depreciation at a regular rate of 20% of the cost of the asset per one year.
It is noted that this accelerated depreciation cannot be used in conjunction with other tax privileges, i.e. an asset under an energy conservation privilege, an asset used in a BOI tax exempt business, an asset derived from research and development expenses that are eligible and claimed for double deduction, and an asset derived from the expense that a listed company claims for tax exemption.
For more details, please contact our lawyer for consultation.
NARIT & ASSOCIATES NEWSLETTER No.47Edition October 2010
