Thailand: Tax incentives to support implementation of digital technology

Three-year corporate income tax exemption for 50% of the investment capital invested in implementing certain digital technologies

Three-year corporate income tax exemption

The Board of Investment announced in March 2021 a three-year corporate income tax exemption for 50% of the investment capital (excluding cost of land and working capital) invested in implementing the following digital technologies:

  • Software, programs or information technology used to be internally integrated or externally connected, or both, with at least three functions of data link for resource management
  • Artificial intelligence (AI), machine learning, and utilizing big data or data analysis
  • Software, programs or information technology that connects with the government’s online services

The minimum investment capital or expenditure of each project must not be less than 500,000 baht (excluding cost of land and working capital) for small and medium enterprises (SMEs), and the minimum investment capital of each project must not be less than 1,000,000 baht for non-SMEs.

Applications for the relief must be submitted by 30 December 2022, and implementation of the project must be completed within three years of the date the promotion certificate is issued.

The calculation of investment capital or expenditure (excluding cost of land and working capital) under this program is as follows:

 

Full investment or expenditure
  • For utilizing software, programs or information technology according to item (a) and (c) which is developed or improved by entrepreneurs in Thailand certified by related agencies.
  • For applying AI, machine learning, and utilizing big data and data analytics according to item (b).
  • For renting/using a cloud service or a data center in Thailand.
Half of the investment or expenditure
  • For utilizing software, programs or information technology according to item (a) and (c) which is developed or improved by entrepreneurs in Thailand not certified by related agencies, or entrepreneurs in foreign countries. 
  • For renting/using a cloud service or a data center in foreign countries.


Read a May 2022 report prepared by the KPMG member firm in Thailand 

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.