This Prakas aims to promote agricultural productivity, enhance competitiveness, and support domestic supply and export activities. The incentives apply to enterprises engaged in the cultivation, production, domestic supply, or export of the following:
Rice, corn, bean, pepper
Cassava, cashew nuts, rubber
Pailin longan, mango, banana
Aquaculture and animal husbandry
Local palm oil used as raw material for animal feed
Key Highlights
· VAT state charge mechanism continues
Suppliers delivering goods or services to enterprises engaged in eligible agricultural activities specified in the Prakas (grow, produce, domestically supply or export rice, corn, bean, pepper, cassava, cashew nuts, rubber, Pailin longan, mango, banana, aquaculture, and local palm oil which are raw materials for animal feed) must not charge output VAT, while remaining eligible to claim input VAT credits related to these supplies.
Tax incentives
Suspension of Minimum Tax, PTOI, and WHT exemptions on the service payment to suppliers who are not under the self-assessment regime to continue to support agricultural activities as mentioned above.
Compliance obligations
1. Agricultural enterprises
Obtain a VAT state charge certificate from GDT
Submit a supplier list with monthly VAT returns
Maintain proper accounting records
File accurate and timely tax returns
2. Local palm oil suppliers
Submit a purchaser list with monthly VAT returns
3. Revocation
Non-compliance may result in revocation of tax incentives.
The new Prakas is effective from 1 January 2026 and extends the incentive period through 31 December 2027.
For more details and assistance in reviewing your tax obligations under this instruction, please contact us.
