Small and medium-sized enterprises (SMEs) can get a 200% tax exemption on software purchases from now to 2019 under a measure announced by the Digital Economy Promotion Agency (Depa).
Some 150-200 local software companies are registered with Depa, and the number is expected to reach 1,000 next year, said executive vice-president Pondchai Homcheen.
He said the 200% tax exemption not only provides software developers with an opportunity to enhance their business capability and competitiveness, but also helps SMEs who buy or rent software programs from local software developers with a double corporate tax exemption for spending of up to 100,000 baht in compliance with regulatory requirements specified by the Revenue Department.
SMEs can search for local software firms registered with Depa at http://tax200.depa.or.th.
There are more than 2 million SMEs in Thailand. Depa aims to have at least 100,000 of them apply for the tax incentive within three years.
The tax break is a win-win condition for users and makers, Mr Pondchai said.
Vinit Visessuvanapoom, director of the Small and Medium Business Tax Administration Unit, said the tax break is effective immediately and covers any kinds of software program: accounting, finance, editing, ERP and so forth.
He said the tax exemption will help SMEs save on software expense and encourage local software developers to meet international standards.
The SMEs are required to purchase or use software programs from local software developers and operators registered with or listed by Depa.
The agency recently invited software developers and entrepreneurs to take advantage of the tax exemption by registering directly with Depa's database system or network.
The developers and operators are required to be certified with ISO/IEC 29110 or other approved standards.