This scenario covers mobile phone expenses where the company directly contracts with the telecom service provider and the invoice is issued in the company’s name (with its tax ID).

This is the most straightforward and preferred method for Corporate Income Tax (CIT) deduction in Thailand. The company owns the contract and directly pays the bill.

General Criteria CIT Deductibility

• Clear Business Purpose: The mobile phone service must be primarily for the company’s business activities (e.g., communication with clients, suppliers, team members for work-related tasks).
• Ordinary & Necessary: The expense must be considered an ordinary and necessary cost of doing business, enabling employees to perform their duties effectively.
• No Employee Assessable Income: Since the company directly bears the cost and the invoice is in its name, it is generally not considered an assessable income or taxable fringe benefit for the employee for Personal Income Tax (PIT) purposes.

Documentation Needed For CIT Deduction

Full Tax Invoices from mobile service provider
Crucially, these must be issued to the company (containing the company’s full name, tax identification number, and address).
These invoices serve as primary evidence for the expense and for claiming input VAT (if the company is VAT registered).
• Proof of payment: Bank transfer slips, credit card statements, or internal payment vouchers demonstrating the company’s payment to the service provider.
• Company policy on mobile phone usage: A clear internal policy outlining the provision of company phones or direct payment of mobile bills for business purposes. This supports the “business purpose” argument.