Petrol expenses for company-owned cars are a common operational cost. These expenses are generally deductible for Corporate Income Tax (CIT) if the vehicles are used for the company’s business activities.

However, the Revenue Department scrutinizes car-related expenses to ensure they are genuinely for business and not for personal use.

General Criteria CIT Deductibility

• The car must be owned by the company (registered in the company’s name).
• The car must be used for the purpose of the company’s business.
• Expenses must be reasonable and directly related to business travel.
• For passenger cars with seating capacity not exceeding 10 persons, the depreciation (for the car’s cost) is limited to a maximum of THB 1,000,000. However, actual petrol expenses are generally fully deductible if for business.

Documentation Needed For CIT Deduction

• Tax Invoices from petrol stations: Must contain the company’s name, tax ID, address, date, and amount.
• Logbook (strongly recommended): Detailed records of car usage including date, destination, purpose of travel, mileage, and driver’s name. This is crucial to prove business use.
• Proof of payment (e.g., credit card statements linked to fuel cards).
• Company car policy: Documenting guidelines for vehicle use.