To claim the 150% tax deduction on energy-efficient machinery in Thailand, manufacturers must invest in equipment certified with a Level 5-star energy efficiency label by the Department of Alternative Energy Development and Energy Conservation (DEDE). Under Royal Decree No. 805 (effective March 2, 2026), businesses can deduct 100% of the equipment cost through standard depreciation plus an additional 50% bonus deduction, totaling 150%. This incentive applies to new machinery purchased and operational between March 3, 2026, and December 31, 2028.
At AirSpace Machinery Co., Ltd., we leverage over 20 years of engineering excellence and our ISO 9001-certified 4000m² facility to provide the high-efficiency Permanent Magnet Variable Frequency (PMV) Screw Air Compressors required to meet these stringent 2026 standards.
Why Is Royal Decree No. 805 a Game-Changer for Thai Factories?
Royal Decree No. 805 (B.E. 2569) is designed to accelerate Thailand’s transition to a low-carbon industrial economy. For factory owners, this isn’t just about sustainability: it’s a massive financial instrument. By allowing a 150% deduction, the Thai government is effectively subsidizing a significant portion of the capital expenditure (CAPEX) for upgrading aging, inefficient air systems.
The Financial Impact: A Comparison
If your facility invests in a high-efficiency 75hp 55kw Variable Frequency Screw Air Compressor, the tax benefit significantly offsets the purchase price.
| Investment Feature | Standard Deduction (Pre-2026) | Royal Decree No. 805 (2026-2028) |
|---|---|---|
| Total Deductible % | 100% | 150% |
| Example Investment | THB 1,000,000 | THB 1,000,000 |
| Total Tax Deduction | THB 1,000,000 | THB 1,500,000 |
| Tax Savings (at 20% CIT) | THB 200,000 | THB 300,000 |
By choosing a PMV Screw Air Compressor, you are not only capturing that extra THB 100,000 in tax savings but also reducing monthly electricity bills by up to 35% compared to fixed-speed models.
What Are the Technical Requirements for the DEDE 5-Star Label?
The Level 5-star energy efficiency label is the “gold standard” required by the Thai Revenue Department for tax eligibility. To qualify, the equipment must undergo rigorous testing by DEDE or the Electricity Generating Authority of Thailand (EGAT).
For air compressors, this typically involves:
- Specific Power Requirements: The amount of energy (kW) required to produce a specific volume of air (m³/min).
- Part-Load Efficiency: How well the machine performs when demand drops. This is where Permanent Magnet Variable Frequency (PMV) technology excels, as it maintains high efficiency even at 20-30% capacity.
- ISO 1217 Compliance: Verification of flow rate and power consumption under standardized conditions.
Addressing Thailand’s Specific Climate Challenges
When selecting a compressor for the Thai market, efficiency ratings aren’t the only factor. Thailand’s high humidity and ambient temperatures (often exceeding 40°C in industrial zones like Rayong or Chonburi) can degrade the efficiency of standard units.
AirSpace Machinery’s PMV75 Series is engineered for these “Extreme Climate” conditions. Our oversized cooling systems ensure that the compressor maintains its DEDE 5-star efficiency levels even during peak tropical heat, preventing the “thermal derating” that often plagues cheaper imports.
Step-by-Step Guide: How to Process Your 150% Claim
To ensure your claim is not rejected by the Revenue Department, follow this precise compliance sequence:
1. Verify the Seller’s VAT Status
The machinery must be purchased from a VAT-registered operator. AirSpace Machinery provides all necessary export and tax documentation, ensuring our Thai partners can issue the required e-Tax Invoices.
2. Procure New Machinery Only
The incentive strictly excludes “used” or “refurbished” machinery. It must be brand new. For those in precision manufacturing, such as electronics or food processing, we recommend our Oil-Free Scroll Compressors which meet both energy standards and purity requirements (ISO 8573-1 Class 0).
3. Obtain the e-Tax Invoice
Manual paper invoices are increasingly scrutinized. Ensure your procurement process generates a valid e-Tax Invoice as per the latest Thai Revenue Department guidelines for 2026.
4. Meet the Operational Deadline
The equipment must be installed, tested, and operational by December 31, 2028. If you are planning a large-scale facility upgrade involving multiple 180hp 132kw Fixed Speed Efficient Screw Air Compressors, factor in the lead time for logistics and customs clearance to ensure you don’t miss this window.
Common Questions from Thai Procurement Managers (Q&A)
Can I claim the deduction for a laser-cutting integrated compressor?
Yes. If you are using an All-in-One Laser Cutting 20hp 15kw Screw Air Compressor, it qualifies as industrial machinery. As long as the integrated unit meets the DEDE energy efficiency criteria, the entire “all-in-one” system (compressor, dryer, and tank) can be considered for the deduction.
Is the deduction applied all at once?
The 100% cost is depreciated over the machine’s useful life (typically 5 years in Thailand), while the 50% “bonus” is usually claimed in the year the asset is acquired and ready for use. Always consult with a local Thai tax auditor to confirm the specific filing period for your corporate structure.
Does AirSpace provide CE and ISO 9001 documentation for Thai customs?
Absolutely. Every unit we ship, from our 10hp Variable Frequency models to our largest industrial units, comes with full CE and ISO 9001:2015 certification. This ensures smooth clearance at Laem Chabang port and provides the technical foundation for your DEDE certification application.
Technical Spotlight: PMV vs. Fixed Speed in the 2026 Tax Context
Under Royal Decree No. 805, the goal is “Energy Saving.” A Fixed Speed Screw Air Compressor is reliable but often fails to reach the “5-star” efficiency rating required for the tax bonus because it wastes energy during “unloaded” states.
In contrast, our Permanent Magnet Variable Frequency (PMV) units use an IE4 or IE5 equivalent motor that adjusts its speed to match your factory’s air demand.
Key Benefits of PMV for Tax Compliance:
- Zero Inrush Current: Prevents peak demand charges from Thai provincial electricity authorities (PEA).
- Constant Pressure: Maintains a stable 8-bar or 10-bar supply, reducing artificial demand.
- Wider Frequency Range: Stays efficient even at low speeds, which is a critical metric for DEDE Level 5 labels.
Conclusion: Act Before the 2028 Deadline
The window for the 150% tax deduction is open now but will close on December 31, 2028. For manufacturers in Thailand looking to hedge against rising electricity tariffs and tighten environmental regulations, the time to upgrade is now.
By selecting AirSpace Machinery, you are choosing a partner with 20 years of engineering pedigree and a 4000m² facility dedicated to high-performance air solutions. We don’t just sell machines; we provide the technical documentation and efficiency performance required to make your tax claim a success.
Get a Proposal
Ready to upgrade your facility and claim your 150% tax deduction? Provide your requirements below for a technical consultation.
- Required Pressure: [___] bar/psi (Mandatory)
- Required Flow Rate: [___] m³/min or CFM (Mandatory)
- Application: [Industrial Manufacturing / Laser Cutting / Food & Beverage]
- Location: [Thailand / Southeast Asia / Other]
Note: Lead times vary based on configuration and custom cooling requirements for extreme climates.
Author: Penny Winston
Technical Writer, AirSpace Machinery Co., Ltd.
Reviewed by Engineering
Compliance Verified: Royal Decree No. 805 (Thailand), ISO 9001:2015, CE Standards.
Sources & Standards:
- Thailand Revenue Department: Royal Decree No. 805 (B.E. 2569).
- DEDE (Department of Alternative Energy Development and Energy Conservation): Energy Efficiency Labeling Standards 2026.
- ISO 8573-1:2010: Compressed air contaminants and purity classes.
- ISO 1217:2009: Displacement compressors : Acceptance tests.
