Maximise your digital investment: How SMEs can benefit from the new 200% tax deduction

Eligibility criteria for the Digital Transformation tax incentive 

Eligible taxpayers must be registered as a company or juristic partnership and meet both of the following conditions: 

• Paid-up capital not exceeding THB 5 million; and 
• Annual revenue not exceeding THB 30 million. 

Which digital expenses qualify for double deduction? 

Eligible entities may claim a 200% tax deduction on qualifying digital transformation expenses, subject to the conditions outlined below. 

1. Eligible expenses  

The deductible expenses must arise from the purchase, hiring, or use of services related to:  

• Computer software  
• Hardware  
• Smart devices  
• Digital services 

2. DEPA registration requirement 

Expenses relating to software, hardware, and smart devices must involve items or services that are registered with the Digital Economy Promotion Agency (DEPA) in order to qualify for the additional tax deduction. However, this incentive does not cover computer equipment.  

3. Maximum deductible 

Amount Although expenses may be deducted at 200%, the maximum allowable deduction is capped at THB 300,000 for the applicable tax years. 

4. Eligible period 

Only expenses incurred between 1 June 2025 and 31 December 2027 qualify for the incentive, in accordance with the rules, procedures, and conditions prescribed by the Director-General of the Revenue Department. 

Key limitations of the measure 

While the Digital Transformation tax incentive offers significant benefits, it does not apply to businesses that already receive tax incentives under other special legal regimes, whether in whole or in part. As a result, overlapping benefits are not permitted. 

Excluded regimes include incentives granted under: 

• The law on enhancing national competitiveness for targeted industries 
• The Eastern Economic Corridor (EEC) legislation 
• Investment promotion laws administered by the Board of Investment (BOI) 

Turning incentives into strategic advantage with Forvis Mazars 

This tax incentive offers SMEs a valuable opportunity to accelerate digital transformation and contribute to the growth of Thailand’s digital economy. Forvis Mazars supports businesses in applying this incentive accurately and efficiently by providing eligibility assessments, tax compliance and documentation support. 

Reference (in Thai): 

• The Revenue Department News No. PorChorSor 27/2568.Retrieved from The Revenue Departmen 
• Royal decree issued under the Revenue Code on tax exemption No. 802.Retrieved from The Royal Gazette