This scenario covers taxi expenses incurred through ride-hailing applications like Grab, where the company utilizes a corporate or business account. Payments are typically managed through this account, providing a digital trail and consolidated billing.

This method offers significantly better documentation compared to cash payments, making deductibility for Corporate Income Tax (CIT) much more straightforward.

General Criteria CIT Deductibility

• Clear Business Purpose: As with all expenses, the taxi trip must be genuinely for the company’s business activities.

• Digital Traceability: The use of a Grab Business Account provides clear, auditable digital records of each trip.

• Formal Billing: Grab generally issues invoices or statements to the corporate account, which simplifies documentation.

• Input VAT Claim: If Grab (or its registered drivers) issues a valid tax invoice to the company, input VAT can be claimed by the company.

Documentation Needed For CIT Deduction

Grab Business Account Reports/Statements/Invoices: These are typically comprehensive documents provided by Grab,
detailing:

  • Date and time of trip.
  • Origin and destination.
  • Passenger/employee name.
  • Specific trip purpose (if entered by the employee).
  • Fare breakdown (including VAT, if applicable).
  • Company name and tax ID (as the account holder).

• Proof of Payment: Records of payments made from the company’s bank account to the Gran corporate account.

• Internal Expense Claim/Voucher: For individual employee trips, an internal claim for referencing the Grab trip ID, employee name, and business purpose, with manager approval. This links the specific trip to the company’s internal process.

• Company Travel Policy: Outlining the use of ride-hailing services for business travel.

References

• Thai Revenue Code, Section 65 ter (3) (General expense deductibility).
• Thai Revenue Code, Section 82/3 and 82/5 (Requirements for input VAT claim and valid tax invoices).
• General principles regarding the deductibility of expenses supported by proper invoices and clear business purpose.