Bangkok: The government is extending significant support to hotel operators in secondary cities by allowing double deductions on renovation costs, a move aimed at boosting local economies and enhancing tourism potential. This initiative is part of a series of tax measures that will be effective from October 29, 2025, to March 31, 2026, and includes a long-term property tax exemption for 20 accounting periods.
According to Thai News Agency, Deputy Government Spokesperson Ms. Lalida Periswiwattana announced that these tax measures are part of a broader strategy by the government, under the leadership of Prime Minister Anutin Charnvirakul, to stimulate economic activity in secondary cities. The measures focus on hotel and accommodation operators, allowing them to deduct twice the actual costs incurred for renovations and improvements. These improvements might include the installation of air conditioning systems, solar cells for energy efficiency, and wastewater treatment systems to enhance environmental and workplace standards.
In addition to renovation cost deductions, the government is offering corporate income tax exemptions for assets utilized in hotel operations. This includes permanent structures and fixtures that are part of a building under the Hotel Act. The exemption can be used consistently over a span of 20 accounting periods, providing long-term financial relief to hotel operators.
Ms. Periswiwattana emphasized that these measures are designed to lower operational costs, encourage investment, and improve service quality in secondary cities. The expected outcome is a positive impact on local employment and income generation, aligning with the government’s commitment to fostering sustainable economic growth at the grassroots level.