# Can I claim Company Passenger Car as a business expense in Thailand?

**Partially claimable.** Partly. A passenger car of up to 10 seats is depreciated only on a cost of up to 1 million baht, and the VAT on it and its running costs is not claimable.

Typical amount: At the 20% rate on the 1 million baht cap, the deductible depreciation is at most 200,000 baht a year for one car, whatever the car cost.

## What Revenue Department (กรมสรรพากร) says

Under Royal Decree No. 145, a passenger car of up to 10 seats is depreciated at the 20% rate on a depreciable value capped at 1 million baht. Section 82/5 of the Revenue Code denies input VAT on buying or renting such a car and on its running costs. A van or pick-up truck used to carry goods is not a passenger car of up to 10 seats, so the cap and the VAT block do not apply to it in the same way. Your accountant confirms the class from the registration.

## When you can claim

- Depreciation on the first 1 million baht of a car used for the business
- Fuel and repairs for business use, as a cost without the VAT
- Insurance and annual registration for a car used in the business, without the VAT
- Parking and tolls on business trips

## When you cannot claim

- Depreciation on the cost above 1 million baht
- Input VAT on the car, its rental, fuel and repairs
- Private use of the car
- The cost of a car used mainly by a director's family
- Traffic fines

## Good to know

**Pro tip:** Keep a simple log of business trips. It supports the business use of the car if the Revenue Department asks.

**Important:** The cap and the VAT block cover passenger cars of up to 10 seats. Ask your accountant how your vehicle is classified. Rental of a passenger car is also blocked for input VAT, so the VAT on a car lease stays with the cost.

Source: https://www.rd.go.th/english/6044.html

## Related expenses

- [Computers and Equipment](https://accounts-os.com/th/expenses/computers-equipment-thailand)
- [Input VAT You Cannot Claim](https://accounts-os.com/th/expenses/non-claimable-input-vat-thailand)