The 200% Rebate: Mastering the thai sme digital tax deduction in 2024

It is a government incentive approved by the Thai Cabinet that allows small and medium enterprises to deduct 200% of their expenses for software, smart hardware, and registered digital services from their taxable corporate income.

To qualify, a business must meet strict SME criteria set by the Thai government: it must generate no more than 500 million baht in annual revenue and employ a maximum of 200 staff members, based on the previous accounting period.

Eligible expenses include both software and hardware that modernize operations. This covers cloud ERP systems, digital accounting platforms, smart point-of-sale (POS) terminals, barcode scanners, and IoT sensors that replace manual workflows.

Using a registered partner ensures compliance. The Revenue Department requires clean e-Tax invoices and proof that the technology is from an approved digital service provider. Buying unverified overseas software directly often leads to audit rejections.

By claiming double the expense, a company reduces its taxable profit significantly. For a 100,000-baht software purchase, claiming a 200,000-baht deduction at a standard 20% corporate tax rate yields 40,000 baht in actual tax savings.