How to Claim the 200% SME Digital Transformation Tax Deduction 2027

It is a Thai government policy allowing small and medium enterprises to deduct 200% of their eligible digital and software expenses from their corporate taxable income, up to a maximum limit of ฿300,000, valid until the end of the 2027 fiscal year.

According to the Thai Revenue Department, an eligible SME is defined as a registered corporate entity with an annual total revenue not exceeding ฿30 million and employing no more than 50 employees during the accounting period.

Eligible expenses strictly include enterprise-grade business software. This covers Customer Relationship Management (CRM) systems, recurring cloud software subscriptions (like accounting or ERP tools), and e-commerce platform developments. Entertainment or non-business software is excluded.

No. The 200% deduction applies exclusively to software licenses, digital services, and cloud subscriptions. Hardware purchases such as laptops, physical servers, or networking equipment only qualify for standard 1x corporate tax deductions and depreciation.

Manual workflows incur high hidden labor costs, increased human error rates, and lost revenue due to slow operational speeds. Automated cloud software replaces these variable labor costs with a predictable, lower monthly subscription fee while virtually eliminating transcription errors.

You must obtain a compliant full e-Tax Invoice from the software vendor containing your exact corporate name and tax ID. The vendor must be VAT-registered in Thailand or compliant with e-Service tax laws, and all payments must be made from a corporate bank account.