Bangkok: The Cabinet has approved a series of tax measures aimed at supporting small and medium-sized enterprises (SMEs) in embracing digital technology. This initiative allows businesses with an income not exceeding 30 million baht to deduct expenses twice as much over the next three years.

According to Thai News Agency, Mr. Pinsai Suraswadi, Director-General of the Revenue Department, stated that the policy is designed to encourage SMEs to integrate digital technology into their business operations and management. The draft royal decree on these tax measures was proposed to the Cabinet, targeting SMEs with a paid-up capital of no more than 5 million baht and annual income from sales and services not exceeding 30 million baht. These businesses can benefit from the ability to deduct expenses at double the rate.

The tax measures cover costs related to the purchase or wages for computer programs, hardware, smart devices, or digital services registered with the Digital Economy Promotion Agency. However, this excludes computers, and the deductible amount is capped at 300,000 baht. These expenses must be incurred between June 24, 2025, and December 31, 2027, following the Cabinet’s approval of this principle.

Mr. Suraswadi further mentioned that this tax measure is expected to enhance the operational potential and competitiveness of SMEs. It will also support entrepreneurs in the Thai digital industry to develop high-quality digital products and services, leading to growth in the Thai digital market.