200% Tax Deduction on Digital Software Including Cloud ERP Through 2027 — How Thai SMEs Claim It

What This Measure Is — And Why a 200% Deduction

The government has issued a Royal Decree promoting digital transformation among SMEs, approved on 24 June 2025. Its intent is to push small and medium-sized businesses into investing in genuine digital tools, not just running an online storefront because the recurring problem is that SMEs have some systems in place but have never brought digital into their back-office processes such as accounting, stock control and tax document issuance, which keeps operating costs high and makes it hard to trace anything after the fact.

The mechanism is a 200% expense deduction — meaning that every 1 baht of qualifying digital expenditure can be deducted as 2 baht when computing net taxable profit. The goal is to lower the corporate income tax burden on SMEs that commit to investing, so that "putting a proper system in place" becomes more worthwhile in tax terms, and to encourage SMEs to move from paper and Excel to a central platform such as an ERP system where data actually connects end to end.

The measure is available to both Thai and qualifying foreign-owned SMEs as specified — provided the legal entity meets the registered capital and revenue conditions, and the expenses claimed fall within the categories the law covers.

The Benefit at a Glance — Rate, Cap, Window and SME Criteria

The table below summarizes the essentials of the measure from the angle that finance teams and executives need to understand before committing to an investment:

As you can see, the SME thresholds under this measure are fairly "small" — the focus is on businesses with paid-up registered capital of no more than THB 5 million and annual revenue of no more than THB 30 million. That is precisely the group that usually still lacks a central system and stands to gain the most from putting one in place. If your business is looking to tighten up its accounting before scaling, it is worth reading our guidance on accounting systems for business alongside this article.

Which Expenses Qualify — And Which Do Not

The heart of claiming this benefit correctly is that "the expense you deduct at 200% must fall into a category the law covers." The following table helps finance teams classify expenses more clearly (although the details should always be confirmed against official sources):

The point that deserves emphasis is the phrase "registered with DEPA" — this measure does not extend to every piece of software on the market; it is tied to the list registered with the Digital Economy Promotion Agency (DEPA). So before signing any agreement to purchase or subscribe to software, ask the vendor to confirm its registration status and keep that evidence on file to support your claim.

A Worked Example of the Tax Saving (Hypothetical)

To show how the "200% deduction" works in practice, consider the following example — please note that this is a hypothetical illustration of the principle only; it is not Saeree ERP pricing or any form of offer. The corporate income tax rate that actually applies depends on the size of your profit and the status of your business, so your auditor should run the numbers on your real figures:

The principle is that a qualifying expense is deducted from taxable profit at twice its value, with the additional portion capped at THB 300,000. So the more profitable the business and the higher the rate at which it is taxed, the more the extra deduction reduces the tax burden, but the actual saving has to be calculated from each company's own tax rate, which is why your auditor should review it before you finalise an investment plan. Putting a system in place that lets you close the books quickly and accurately also reduces your risk during an audit — see our guidance in the article on period-end closing for more.

How to Claim, Step by Step

For SMEs planning to claim, the main steps are summarized below (the practical detail follows the guidance issued by the Revenue Department and DEPA):

1. Check whether your business meets the SME criteria — paid-up registered capital of no more than THB 5 million as at the end of the accounting period, and revenue of no more than THB 30 million per year
2. Choose software/services registered with DEPA — ask the vendor to confirm registration status in writing
3. Make sure the expense is incurred within the window — between 24 June 2025 and 31 December 2027
4. Keep complete documentation — tax invoices/receipts, the contract, and evidence of DEPA registration
5. Record the entries and compute the additional deduction — have your auditor calculate the 200% deduction within the THB 300,000 cap
6. File your corporate income tax return — claim the benefit using the forms and conditions prescribed by the Revenue Department

Why This Matters for Organizations Using Saeree ERP

Saeree ERP, by Grand Linux Solution, has worked continuously with SME and enterprise customers in Thailand, and this 200% deduction bears directly on how SMEs approach a system investment, in several ways:

• Saeree has two product lines — Standard for SMEs and Enterprise for larger organizations, so a business can size the system to match its budget and readiness
• Supports both on-premise and cloud — SMEs that want a cloud ERP can have one, while organizations that prefer to keep data in-house can choose on-premise (see the on-premise vs cloud comparison)
• Issues e-Tax Invoices to the ETDA standard — the accounting system can issue electronic tax invoices to the applicable standard (see the e-Tax Invoice guide)
• Admins can manage master data themselves — add, inactivate, and set valid from–to dates for vendors, items and prices without waiting for a vendor patch, which cuts both the time and the cost of setting the system up
• Lays a data foundation ready to scale — start with accounting and inventory, then build out from there (see our guidance on ERP implementation)

As for the 200% claim itself, which hinges on DEPA registration — you can ask the Saeree team directly to check registration status with DEPA and to help assemble the supporting documentation for a claim. That said, final confirmation of any tax benefit should go through your auditor and be based on the official conditions set by DEPA and the Revenue Department. We will not claim more than we can verify.

A tax incentive is a good motivator, but the heart of any system investment is still "a system that genuinely gets your data talking to each other" — the SMEs that get the most out of this measure are the ones that choose software on business fit first and treat the tax benefit as a bonus, rather than choosing software simply because they want the deduction.

- Saeree ERP Team

Conclusion — Your Checklist Before Claiming the 200% Deduction

1. Check your own SME status — paid-up registered capital of no more than THB 5 million and revenue of no more than THB 30 million per year
2. Verify the software's DEPA registration — obtain written confirmation from the vendor before signing
3. Control the timing — make sure the expense is incurred between 24 June 2025 and 31 December 2027
4. Keep complete documentation — tax invoices/receipts, the contract, and evidence of DEPA registration
5. Consult your auditor or tax adviser — have them calculate the 200% deduction within the THB 300,000 cap using your real figures
6. Choose software that fits the business first — the tax benefit is a bonus, not the main reason to pick a system

If your organization is an SME planning to invest in an ERP system for SMEs, an accounting system or a cloud ERP, and you would like advice on choosing a system that fits your business — along with help checking DEPA registration status and assembling the documentation for a claim — the Saeree team is ready to advise. You can contact our consulting team directly.

References

• Thailand SME Policy Updates 2026 — Lex Nova Partners
• Thailand Digital Economy Trends 2026 — Enersys
• Digital Economy Promotion Agency (DEPA)
• The Revenue Department