Thailand Offers 200% Tax Deduction for SME Digital Transformation

Brickinfo News Agency – The Thai Cabinet has approved a new tax measure allowing small and medium-sized enterprises (SMEs) to deduct 200% of expenses related to digital transformation, aiming to bolster their competitiveness and alleviate operational costs. This initiative, proposed by the Revenue Department in collaboration with the Digital Economy Promotion Agency (depa), is designed to encourage the adoption of digital technology within Thai businesses.

The approved measure allows eligible companies or partnerships with paid-up capital not exceeding 5 million baht and annual sales revenue not exceeding 30 million baht to claim a double tax deduction on specific digital expenses, up to a maximum of 300,000 baht. These expenses include the purchase, development, or use of computer programs, hardware, smart devices, or digital services registered on depa’s Digital Service Account. The deduction period runs from June 24, 2025, to December 31, 2027. This excludes general computer equipment.

Associate Professor Dr. Nuttapon Nimmanphatcharin, President/CEO of depa, stated that this measure is an enhancement of a previous 200% tax incentive. He highlighted that for hardware and smart devices to qualify, they must possess the dSURE certification, which signifies adherence to safety, functionality, and cybersecurity standards. Similarly, computer programs and digital services must meet international standards set by depa, such as ISO/IEC 29110 or CMMI Development, before being listed on the Digital Service Account. This platform serves as a curated repository of digital products and services from Thai providers that meet specified criteria for quality, standards, and reasonable pricing, aiming to build user confidence.

Dr. Nuttapon expressed depa’s anticipation that this tax measure will not only motivate Thai SMEs to integrate digital technology for improved capabilities and competitiveness but also help reduce their financial burdens. He added that it is expected to encourage Thai digital industry entrepreneurs to innovate and develop high-quality digital products and services, thereby benefiting the nation’s digital economy and society as a whole. Businesses interested in registered digital products and services can find more information on the Digital Service Account website.