Thailand SME 200% Tax Deduction for Digital Spend (2025–2027)

Thailand’s 200% Tax Deduction for SMEs’ Digital Investments (2025–2027)

The Cabinet has approved in principle a 200% tax deduction for eligible SMEs on qualifying technology expenses paid to digital service providers registered with DEPA. Qualifying spend includes purchases, outsourcing, and service fees for software, hardware, and related digital equipment. The double deduction applies to eligible expenses up to THB 300,000 per accounting year during 24 June 2025–31 December 2027. Any spend above THB 300,000 remains deductible at the normal rate (without the double benefit).

Note: “Approved in principle” means the measure is subject to final implementing regulations and guidance. Businesses should confirm detailed criteria and claiming procedures once the Revenue Department issues official rules.

Who qualifies and what expenses are covered

• Eligible taxpayers: SMEs that meet the scheme’s criteria (to be specified in implementing rules).
• Eligible spend:
  • Purchase of computer programs, hardware, and related digital equipment.
  • Outsourced development or customization of software/systems.
  • Service fees (e.g., SaaS, support, maintenance) for digital solutions.
• Vendor requirement: Payment must be made to a digital service provider registered with DEPA (Digital Economy Promotion Agency).

Key thresholds and timing

• Deduction rate: 200% (double deduction) on qualifying spend.
• Annual cap: Up to THB 300,000 of qualifying expenses per year is eligible for the 200% deduction.
• Excess amounts: Expenses above THB 300,000 are deductible at the normal rate (no double benefit).
• Eligible period: Expenses incurred from 24 June 2025 to 31 December 2027.

Summary at a glance

• Eligible taxpayers: SMEs (per scheme criteria)
• Qualifying costs: Software, SaaS, hardware, equipment, digital services
• Vendor status: Must be DEPA-registered digital provider
• Deduction: 200% of eligible spend
• Annual cap (eligible base): THB 300,000/year
• Period: 24 Jun 2025–31 Dec 2027
• Amount above cap: Normal deduction (no double)

 

 

To qualify for the SME 200% tax deduction, payments must be made to DEPA‑registered providers (TECHHUNT)

1. Visit https://techhunt.depa.or.th
2. Ensure JavaScript is enabled (use a modern browser).
3. Search or browse for the provider/product to confirm DEPA registration status.
4. For data validation, use the Open Data links on the site to download the latest provider dataset (e.g., CSV/XLSX) and cross-check entries. As of 19 July 2025, TECHHUNT lists 300+ registered digital products/services.
5. Save evidence (screenshots of the listing and/or the Open Data file) for your records.

Practical example

• Scenario: An SME incurs THB 380,000 of qualifying digital spend in a year with a DEPA-registered provider.
• Double deduction base: First THB 300,000 qualifies for 200% deduction.
• Tax deduction computation:
  • Double deduction portion: 2 × 300,000 = 600,000
  • Normal deduction on excess: 80,000
  • Total deductible amount: 680,000

Documentation and compliance checklist

• Contract/quotation with a DEPA-registered provider (showing scope: software, hardware, services).
• Tax invoice/receipt with accurate taxpayer details and VAT ID (if applicable).
• Proof of payment (bank transfer slip, receipt).
• Evidence of DEPA registration (screenshot/printout and/or Open Data record, with access date).
• Internal schedule that tracks:
  • Date incurred (must be within 24 Jun 2025–31 Dec 2027).
  • Amount earmarked for the 200% deduction (up to THB 300,000/year).
  • Any excess amount is treated under normal deduction.
• Accounting/tax treatment notes:
  • For operating expenses (e.g., SaaS, services), the additional 100% deduction is typically claimed via a tax add-back/extra deduction schedule in the corporate income tax return for the relevant period.
  • For capital items (e.g., hardware), follow the implementing rules once issued—treatment (full cost vs. depreciation basis) may be specifically prescribed. Keep fixed-asset registers and invoices ready.

Common pitfalls to avoid

• Using a vendor that is not DEPA-registered at the time of purchase/service.
• Invoicing or payment dates falling outside the eligible period.
• Exceeding the THB 300,000 annual cap for the double deduction without tracking the normal-deduction portion.
• Missing documentation to substantiate vendor eligibility and the nature of the digital spend.
• Assuming eligibility without confirming SME status under the scheme’s criteria.

Next steps for SMEs

• Confirm SME eligibility under the forthcoming detailed rules.
• Shortlist DEPA-registered providers via TECHHUNT and obtain formal quotations/contracts.
• Set up an internal ledger to track the “double deduction base” (up to THB 300,000/year).
• Retain all supporting evidence for tax filing and potential audits.
• Consult your tax advisor once implementing regulations are published to finalize treatment, especially for capital assets and carry-forward implications.