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 |
|
| Half of the investment or expenditure |
|
Read a May 2022 report prepared by the KPMG member firm in Thailand
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