Depreciation rates in Thailand

Depreciation Rates

Type of assets Depreciation rate
Buildings
Permanent buildings
Temporary buildings

5% per year
100% upfront
Depleteable natural resources 5% per year
Lease
No lease agreement or unlimited lease period
Limited lease period

10% per year
(100/lease period) % per year
Rights in processes, Formulas, Goodwill, Trademarks,
Business licenses, Patents, Copyrights & other rights
Unlimited period of rights
Limited period of rights


10% per year
(100/lease period)% per year
Machinery & Equipment
Computer hardware & software
Research & Development assets
Other machinery and equipment

33.33% per year
40% upfront, then ≤ 20% per year on the remaining amount
20% per year
Vehicles
Cars & vans ≤ 10 seats
Cars & vans rented out by car rental businesses
Prototypes for R&D or performance testing purpose
Other vehicles

20% per year on the asset value up to ฿1 million
20% per year
20% per year
20% per year  
Lands N/A

Example:
Your company purchased a car for ฿2.2 million to be used by its Director. The car can be depreciated over 5 years (20% per year) but up to ฿1 million only (i.e. ฿200,000 / year). The remaining amount of ฿1.2 million could not be recorded as business expenses.

Accelerated Depreciation Rates

Conditions:
1. Total fixed assets value ≤ ฿200 million (excluding land)
2. ≤ 200 employees

Type of assets Depreciation rate
Permanent buildings 25% upfront, then ≤ 5% per year on the remaining amount
Computer hardware & software 40% upfront, then ≤ 33.33% per year on the remaining amount
Other machinery & equipment 40% upfront, then ≤ 20% per year on the remaining amount

Example:
Your company recently purchased new office desks and chairs for a total of ฿300,000. The company’s total fixed assets value does not exceed ฿200 million (excluding land) and you have less than 200 employees. This office equipment can be depreciated as follows:
1st year: ฿120,000 (฿300,000 * 40%) + ฿36,000 (180,000 * 20%) = ฿156,000
2nd year: ฿36,000 (180,000 * 20%)
3rd year: ฿36,000 (180,000 * 20%)
4th year: ฿36,000 (180,000 * 20%)
5th year: ฿36,000 (180,000 * 20%)