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%)