Thailand announces a tax incentive for Voluntary Emission Reduction Program

Thailand announced “Notification of Director-General of Revenue Department (No. 394) regarding Standards, Procedures, and Conditions on Exemption of Corporate Income Tax for a Corporate Entities Implemented Voluntary Emission Reduction Projects” on 4 February 2021. The notification was published followed by the Royal Decree (No. 694) gazette on 22 June 2020 to prescribe the details of the tax incentive scheme.

Industries who conducted greenhouse gas emission reduction projects registered with the Thailand Greenhouse Gas Management Organization (TGO) are entitled to claim a corporate income tax exemption on net profits derived from the sale of carbon credits for three consecutive financial years under the Thailand Voluntary Emission Reduction Program (T-VER). The project shall be registered with the TGO between 23 June 2020 and 31 December 2021.

Thailand Voluntary Emission Reduction Program (T-VER) was launched in 2013 by TGO as a project-based voluntary scheme to encourage GHG reduction and promote the carbon market in Thailand. The scheme is harmonized with international standards, IDO 14064-2 and ISO 14064-3. A carbon credit can be traded in the domestic carbon market.

Download original text of the Notification (No. 394) at

http://www.ratchakitcha.soc.go.th/DATA/PDF/2564/D/010/T_0073.PDF

Download original text of the Royal Decree (No. 694) at

http://www.ratchakitcha.soc.go.th/DATA/PDF/2563/A/045/T_0005.PDF