Bangkok: The government supports hotels, deducting double the renovation costs. The government is supporting hotel operators in secondary cities by offering double deductions for renovation costs, valid from October 29, 2025, to March 31, 2026, along with property tax exemptions for 20 accounting periods.
According to Thai News Agency, Ms. Lalida Periswiwattana, Deputy Government Spokesperson, revealed that the government, led by Prime Minister Anutin Charnvirakul, is moving forward with tax measures to stimulate the local economy and enhance the potential of the tourism industry, specifically targeting hotel and accommodation operators in “secondary cities.” These measures will take effect from October 29, 2025.
The key measure allows businesses to deduct twice the actual cost of renovations or improvements to their establishments. This deduction is available until March 31, 2026, for businesses in secondary cities that are in the state tax system. This deduction covers costs for upgrading standards and increasing efficiency, such as installing air conditioners and solar cell systems to reduce energy costs and promote sustainability, and establishing wastewater treatment systems to simultaneously improve environmental quality and workplace standards.
The government also provides corporate income tax exemptions for assets used in hotel operations, including permanent buildings under the Hotel Act, and permanently attached decorations or furniture that are part of the building. These tax exemptions are granted in equal amounts for 20 consecutive accounting periods.
The Deputy Government Spokesperson stated that this measure will reduce costs, increase investment incentives, and enhance service quality in secondary cities. This will directly impact employment and income flow in local communities, reflecting the government’s commitment to driving sustainable growth in the grassroots economy.