TL;DR New tax measure offers up to ฿300,000 in enhanced deductions for digital investment, available until 2027.
Introduction :
On 24 June 2025, the Thai Cabinet approved a new income tax incentive designed to accelerate the digital transformation of small and medium-sized enterprises (SMEs). Under the proposed Royal Decree, eligible businesses can claim a 200% tax deduction on qualifying digital expenses, up to a cap of ฿300,000, incurred between 24 June 2025 and 31 December 2027.
This measure forms part of the government’s wider strategy to build and develop a strong digital economy and promote competitiveness among Thailand’s SMEs, which represent a significant portion of the Thai economy.
Points clés
- 200% tax deduction available for SMEs who can claim double the value of qualifying digital expenses as a tax deduction, capped at ฿300,000 per business until December 2027.
- Only SMEs with paid-up capital under ฿5 million and annual revenue below ฿30 million qualify for the incentive.
- All qualifying digital products and services must be registered and approved by the Digital Economy Promotion Agency to be eligible for deductions.
- Deductions apply to registered digital software, smart devices (excluding general computers), digital business services, and DEPA-approved computer programs.
- SMEs must maintain official tax invoices, proof of payment, and DEPA registration confirmation to successfully claim deductions during tax filing.
Who is Eligible to This Tax Deduction?
The tax incentive is aimed at SMEs formally registered in Thailand. To qualify, businesses must meet all of the following financial criteria:
- Paid-up capital of not more than ฿5 million at the end of the accounting period
- Annual revenue from sales and services of not more than ฿30 million
This definition aligns with standard SME classifications under Thai tax regulations and ensures the incentive specifically targets businesses that may otherwise lack the capital to invest in digital upgrades. Both Thai-owned and foreign-owned SMEs that meet the criteria are eligible.
Juristic partnerships and limited companies are covered under the scheme, provided they are in good standing with the Department of Business Development and compliant with existing tax and financial reporting obligations.
Note: Businesses must be able to demonstrate that their claimed expenses directly support digital transformation goals. Proper invoicing, proof of payment, and vendor registration with the Digital Economy Promotion Agency (DEPA) will be essential for audit and compliance purposes.
What Expenses Qualify?
The tax deduction is available only for specific digital-related expenditures. The purpose of the deduction is to encourage SMEs to adopt technologies that improve business efficiency, digital capacity, and data management.
A 200% deduction is available that allows companies to deduct double the value of the actual expense when calculating their taxable income. However, the total benefit is capped at ฿300,000 per entity over the life of the incentive period (from 24 June 2025 to 31 December 2027).
Qualifying expenses include the purchase, rental, or subscription of the following:
- Registered digital software (e.g. cloud-based ERP, accounting systems, CRM platforms)
- Smart devices and digital hardware, excluding general-purpose computers (e.g. barcode scanners, POS systems, IoT-enabled machinery)
- Digital services that directly enhance business processes (e.g. e-commerce platforms, AI-enabled analytics, cybersecurity services)
- Computer programs officially registered with DEPA
To qualify for the deduction, these products and services must be registered and approved by DEPA. This ensures consistency in quality and limits abuse of the incentive by preventing the inclusion of general IT or consumer electronics.
Oversight and Implementation
To ensure effective implementation, the Ministry of Digital Economy and Society has been appointed as the supervisory authority under the Decree. By appointing the Ministry of Digital Economy and Society, the government aims to ensure that companies do not take advantage of the incentive, while at the same time promoting digital capability among SMEs.
The key responsibilities of the Ministry of Digital Economy and Society include:
- Educating the public on the scope and procedures of the incentive
- Monitoring uptake and effectiveness, including tracking the number of SMEs utilising the scheme and the types of digital investments made
- Annual reporting to the Ministry of Finance, including a fiscal impact analysis measuring actual revenue foregone against projected economic benefits
It is expected that the Ministry will collaborate with DEPA to publish clear registration procedures and updated lists of qualifying technologies, ensuring that compliance remains practical and transparent.
How does this Affect Business Owners?
For eligible SMEs, this is a significant opportunity. The easier access to digital tools can help reduce inefficiencies, enhance decision-making, and enable data-driven growth. The double deduction lowers the cost of digital adoption, helping small businesses stay competitive in an environment where the technology is constantly changing and evolving.
To make sure businesses make the most of this deduction they should review their current operations to identify areas where digital upgrades, such as CRM systems, inventory management software, or e-commerce platforms, could be updated or introduced.
How can SMEs Claim the Tax Deductions?
To successfully claim the deduction, SMEs will need to ensure the following steps are followed:
- Confirm eligibility based on their capital and revenue thresholds
- Make purchases from registered vendors whose products or services have been approved by DEPA
- Retain documentation including:
- Official tax invoices
- Proof of payment
- Registration or approval confirmation from DEPA
- File claims as part of their annual tax return.
Failure to comply with the registration requirements or Revenue Department standards may lead to the deduction being rejected or possible penalties such as fines.
Businesses are advised to consult with tax professionals or legal advisors to ensure eligibility and compliance.
Nos réflexions
This new Tax incentive is a significant step to help Thai SMEs catch up with digital trends and stay competitive, especially for smaller businesses that may have delayed tech upgrades due to cost. It’s a practical way to reduce risk, cut expenses, and build a more future proof business.
Veuillez noter que cet article est fourni à titre d'information uniquement et ne constitue pas un avis juridique.
Thailand SME Digital Transformation Tax Deduction – Frequently Asked Questions
What is the new 200% tax deduction for SMEs in Thailand?
The Thai Cabinet approved a new income tax incentive on 24 June 2025 that allows eligible SMEs to claim a 200% tax deduction on qualifying digital expenses. This means businesses can deduct double the value of their digital investments when calculating taxable income, with a cap of ฿300,000 per business. The incentive is available for expenses incurred between 24 June 2025 and 31 December 2027.
Which businesses qualify for Thailand’s SME digital transformation tax deduction?
To qualify for this tax incentive, businesses must be SMEs formally registered in Thailand with paid-up capital of not more than ฿5 million and annual revenue from sales and services of not more than ฿30 million. Both Thai-owned and foreign-owned SMEs that meet these criteria are eligible, including juristic partnerships and limited companies in good standing with the Department of Business Development.
What digital expenses qualify for the 200% tax deduction in Thailand?
Qualifying expenses include registered digital software (cloud-based ERP, accounting systems, CRM platforms), smart devices excluding general computers (barcode scanners, POS systems, IoT-enabled machinery), digital services that enhance business processes (e-commerce platforms, AI-enabled analytics, cybersecurity services), and computer programs officially registered with DEPA. All products and services must be registered and approved by the Digital Economy Promotion Agency to be eligible.
How much can Thai SMEs save with the digital transformation tax deduction?
SMEs can claim up to ฿300,000 in enhanced deductions over the entire incentive period from 24 June 2025 to 31 December 2027. The 200% deduction allows companies to deduct double the value of actual qualifying digital expenses when calculating their taxable income. For complex tax planning and to maximize these benefits, consider consulting with experienced tax professionals like Lex Nova Partners.
What documentation do Thai SMEs need to claim the digital tax deduction?
SMEs must maintain official tax invoices, proof of payment, and DEPA registration confirmation for all qualifying digital expenses. They need to make purchases from registered vendors whose products or services have been approved by DEPA, and file claims as part of their annual tax return. Proper documentation is essential for audit and compliance purposes.
Who oversees Thailand’s SME digital transformation tax incentive program?
The Ministry of Digital Economy and Society has been appointed as the supervisory authority under the Royal Decree. Their responsibilities include educating the public on the incentive scope and procedures, monitoring uptake and effectiveness, and providing annual reporting to the Ministry of Finance with fiscal impact analysis. They collaborate with DEPA to ensure compliance remains practical and transparent.
How can Thai SMEs successfully claim the 200% digital tax deduction?
SMEs should first confirm their eligibility based on capital and revenue thresholds, then make purchases from DEPA-registered vendors. They must retain all required documentation including official tax invoices, proof of payment, and DEPA registration confirmation, then file claims as part of their annual tax return. Given the complexity of tax compliance, businesses are advised to consult with tax professionals like Lex Nova Partners to ensure proper eligibility and compliance.
What happens if Thai SMEs don’t comply with the digital tax deduction requirements?
Failure to comply with the registration requirements or Revenue Department standards may lead to the deduction being rejected or possible penalties such as fines. This is why proper documentation and vendor verification through DEPA is crucial. To avoid compliance issues and potential penalties, SMEs should work with qualified legal and tax advisors throughout the process.
How does Thailand’s digital transformation tax incentive benefit SME business owners?
This incentive provides significant opportunities for eligible SMEs by making digital tools more accessible and affordable. The double deduction lowers the cost of digital adoption, helping small businesses reduce inefficiencies, enhance decision-making, and enable data-driven growth. It helps SMEs stay competitive in an environment where technology is constantly evolving, making it easier to invest in CRM systems, inventory management software, or e-commerce platforms.