How to Claim the 200% thailand sme digital tax deduction 2026

It is a government incentive designed to accelerate digital transformation among local businesses. Eligible Thai SMEs can claim a 200% corporate tax deduction on expenses related to software, smart hardware, and digital services, up to a maximum cap of 300,000 baht per accounting year.

To qualify, the business must be a legally registered Thai entity (Company Limited or Limited Partnership) with an annual revenue not exceeding 30 million baht. Additionally, its total paid-up registered capital must remain under 5 million baht on the final day of the accounting period.

Qualifying expenses include software licenses (like Cloud ERP or CRM systems), specialized smart hardware (such as IoT warehouse scanners or connected POS terminals), and cloud hosting services. These must be purchased for direct business improvement, not standard maintenance.

No. Routine utility expenses, including monthly broadband internet bills, mobile phone plans, and general hardware repair parts, do not qualify for the 200% deduction. They can only be deducted at the standard 100% rate as normal operational expenses.

The Revenue Department strictly requires fully compliant electronic tax invoices (e-Tax) from locally registered vendors to approve the 200% claim. Purchasing software from foreign entities that cannot issue a Thai e-Tax invoice will instantly disqualify that expense from the special deduction.

By spending the maximum 300,000 baht on approved digital tools, you reduce your taxable income base by 600,000 baht. For an SME operating in the standard 20% corporate tax bracket, this translates to a direct cash saving of 60,000 baht on their annual tax liability.