NSDA for Employers: How Thai Companies Can Access Government AI Training

The Business Case for NSDA AI Training

Thailand's government has created one of Southeast Asia's most employer-friendly training incentive systems. The combination of the 200% tax deduction under the Revenue Code, free training at DSD centres, and depa digital transformation grants means that AI workforce development in Thailand can be essentially free — or even generate a net financial benefit through tax savings.

For Thai companies, the question is not whether to invest in AI training, but how to structure that investment to maximise government support. According to the World Economic Forum's Future of Jobs Report, Thailand ranks among the ASEAN countries with the highest demand for AI-skilled workers, yet also faces one of the largest skills gaps. Government incentives are designed to close this gap rapidly, and companies that act now gain both a competitive advantage and significant financial benefits.

The 200% Tax Deduction: Thailand's Most Powerful Training Incentive

How It Works

Under Section 6 of the Thai Revenue Code, as enhanced by Royal Decree No. 437, employers who conduct training that meets Department of Skill Development standards can deduct 200% of qualifying expenses from their corporate income tax base. This is not a tax credit — it is a deduction from taxable income, which means the actual financial benefit depends on your corporate tax rate.

Example:

• Company spends THB 500,000 on approved AI training
• Tax deduction: THB 1,000,000 (200% of actual cost)
• At the standard 20% corporate tax rate, this saves THB 200,000 in taxes
• Net cost of THB 500,000 training: THB 300,000 (40% effective discount)

Larger example for enterprise-scale training:

• Company trains 200 employees at THB 15,000 per person = THB 3,000,000 total cost
• Tax deduction: THB 6,000,000 (200%)
• Tax saving at 20% rate: THB 1,200,000
• Net cost: THB 1,800,000 — effectively THB 9,000 per employee for AI training

Qualifying Criteria

To qualify for the 200% deduction, training must meet all of the following requirements:

• Be registered with the Department of Skill Development prior to delivery (Form SDP 1)
• Follow an approved curriculum aligned with DSD or TPQI standards
• Be delivered by registered trainers or accredited training providers who meet DSD qualification standards
• Include formal assessment of learning outcomes (not just attendance)
• Be documented with attendance records, assessment results, and training reports
• Be reported to DSD after completion (Form SDP 2 within 60 days)

How to Register Training with DSD

1. Submit Form SDP 1: The employer training notification form must be submitted to DSD at least 15 days before training begins. This form includes the course title, detailed curriculum, schedule, trainer qualifications, expected number of trainees, and training venue.
2. Include training details: Attach the full curriculum document, trainer CVs and qualifications, assessment methodology, and training materials list. The more detailed the submission, the faster the approval.
3. Receive approval: DSD reviews and approves within 10-15 business days. For standard programmes that align closely with existing TPQI standards, approval is typically straightforward. For novel or highly specialised AI courses, DSD may request additional information or curriculum modifications.
4. Deliver training: Conduct the programme exactly as approved. Maintain daily attendance records signed by both participants and the trainer. Document any changes to the schedule or content and notify DSD if significant deviations are necessary.
5. File Form SDP 2: Post-training completion report must be submitted to DSD within 60 days of training completion. Include actual attendance records, assessment results, participant feedback, and any certificates issued.
6. Claim deduction: Include the 200% deduction amount in your annual corporate income tax filing with supporting documentation. Keep all records for at least 5 years for potential Revenue Department audits.

Skill Development Promotion Act Obligations

The 50% Training Requirement

Companies with 100 or more employees must ensure that at least 50% of their total workforce receives skills training annually. This is a legal requirement under the Skill Development Promotion Act B.E. 2545, and it applies to all industries and company types.

Key points:

• Training must be at least 6 hours per employee per year to count toward the 50% threshold
• AI and digital skills courses count toward the requirement, making it an opportunity to build valuable capabilities while meeting legal obligations
• Both in-house and external training qualify, including DSD centre courses, university programmes, and private provider training
• Online and blended learning qualifies if it meets DSD standards and includes assessment
• The requirement applies to the total headcount including both Thai and foreign employees with work permits

Consequences of Non-Compliance

Companies that fail to meet the 50% training requirement must pay a levy to the Skill Development Fund:

• The levy is calculated as 1% of the total annual wages of employees who did not receive training during the year
• The levy is collected by the Department of Skill Development and is not tax-deductible
• Failure to pay the levy on time results in a 20% surcharge per month on the outstanding amount
• For a company with 200 employees at an average monthly salary of THB 30,000, failure to train any employees could result in a levy of approximately THB 720,000 annually — far more than the cost of training

Strategic Approach

Smart companies turn this legal obligation into a strategic advantage:

• Train employees in AI skills that directly improve business operations and productivity
• Claim the 200% tax deduction for a net financial benefit that exceeds the training cost in tax savings
• Avoid the skills development levy entirely while building competitive capabilities
• Build a culture of continuous learning that attracts and retains top talent
• Create internal AI champions who drive innovation across the organisation

Enterprise Training Models

In-House Training with DSD Registration

The most flexible option for large employers who want full control over training content and schedule:

• Design your own AI curriculum aligned with DSD standards, customised for your industry and specific business challenges
• Use internal trainers who meet DSD requirements (relevant educational background, professional experience, and teaching qualifications) or engage external DSD-registered training providers
• Train at your own facilities on your preferred schedule, including weekends, evenings, or intensive workshop formats
• Full 200% tax deduction applies to all qualifying costs including trainer fees, materials, equipment rental, and venue costs
• Best for companies with 50+ employees to train, where economies of scale justify curriculum development costs

DSD Centre Partnership

Partner directly with government training centres for cost-effective foundational training:

• Send employees to DSD Institute of Skill Development centres for structured courses in AI, data analytics, programming, and digital skills
• Training is free for Thai employees at government centres — no tuition, no fees
• DSD provides state-of-the-art facilities, equipment, certified instructors, and nationally standardised curriculum
• Company covers only employee time, transportation, and accommodation costs (if the centre is in another province)
• Ideal for foundational AI literacy training before progressing to advanced in-house or provider-led programmes

Enterprise-University Collaboration

Thailand's leading universities offer customised enterprise training with academic rigour:

• Joint development of AI curricula specific to your industry, leveraging university research expertise and industry knowledge
• Access to university labs, AI research facilities, GPU computing clusters, and specialised software
• Co-certification with university credentials that carry prestige and professional recognition
• Many university enterprise programmes qualify for the 200% tax deduction when properly registered with DSD
• Particularly valuable for advanced AI capabilities (deep learning, NLP, computer vision) where university expertise adds significant value

depa Enterprise Digital Transformation

depa offers structured support specifically designed for enterprise digital skills development:

• Digital Pack: Subsidised access to digital tools and training platforms for SMEs, including AI productivity tools and learning management systems
• Digital Transformation Grants: Mini grants up to THB 100,000 for digital skills programmes, midi grants up to THB 1,000,000 for comprehensive transformation projects
• Industry-Specific Digital Workshops: Sector-focused AI training for groups of companies in the same industry, enabling knowledge sharing and benchmarking
• Digital Talent Pipeline: Programmes connecting companies with Coding Thailand graduates and university-trained AI professionals

Maximising Government Support: A Layered Approach

Thai companies can stack multiple incentives for maximum training value. The key is layering free and subsidised programmes with tax deductions to minimise — or even eliminate — net training costs:

1. Layer 1 — Free DSD Training: Send employees to government centres for foundational AI skills (cost: zero). This builds a baseline of AI literacy across your workforce.
2. Layer 2 — depa Grants: Apply for up to THB 100,000 (mini) or THB 1,000,000 (midi) to cover advanced training costs. This funds more specialised, business-specific AI training.
3. Layer 3 — 200% Tax Deduction: Register all qualifying training with DSD for the double tax deduction, providing an effective 40% discount on remaining training costs.
4. Layer 4 — BOI Incentives: Companies with Board of Investment (BOI) privileges may claim additional training incentives under their investment promotion certificates, including extended tax holidays for significant training investments.
5. Layer 5 — EEC Support: Companies operating in EEC zones can access additional workforce development subsidies specific to the Eastern Economic Corridor programme.

Case Study — Combined Incentive Calculation: A mid-size manufacturing company (BOI-promoted, EEC zone) trains 100 employees:

• 50 employees attend free DSD courses: THB 0
• 50 employees receive advanced AI training: THB 1,500,000
• depa mini grant: -THB 100,000
• Net training cost: THB 1,400,000
• 200% tax deduction: THB 2,800,000 deduction = THB 560,000 tax saving
• Effective net cost: THB 840,000 for 100 employees = THB 8,400 per person

Common Mistakes to Avoid

1. Not registering training with DSD before delivery: The 200% deduction requires prior registration via Form SDP 1 at least 15 days before training. Retroactive approval is not available, and this is the most common reason companies miss the deduction.
2. Ignoring the 50% threshold: Companies with 100+ employees who miss the annual training requirement face the 1% levy with compounding monthly surcharges. This can quickly become a significant financial penalty.
3. Using unqualified trainers: Training delivered by trainers who do not meet DSD qualification standards does not qualify for the tax deduction, even if the content is excellent. Verify trainer qualifications before engaging.
4. Poor documentation: Keep detailed records including Form SDP 1, SDP 2, daily attendance sheets, assessment results, trainer qualifications, and training materials. Revenue Department audits require complete documentation, and incomplete records can result in the deduction being disallowed.
5. Missing the Form SDP 2 deadline: The completion report must be filed within 60 days. Companies that deliver training but forget to file the completion report lose their deduction eligibility.
6. Not counting all qualifying expenses: In addition to direct training costs, qualifying expenses can include trainer fees, training materials, equipment rental, venue costs, and assessment fees. Capture all eligible costs to maximise the deduction.

Pertama Partners Enterprise Training

Pertama Partners is a registered training provider delivering NSDA-aligned AI programmes for Thai enterprises. We handle the full compliance process so you can focus on building AI capabilities:

• DSD registration and Form SDP 1/SDP 2 preparation and submission
• Curriculum design meeting TPQI occupational standards with customisation for your industry
• Certified trainers who meet all DSD qualification requirements for the 200% tax deduction
• Complete documentation package for Revenue Department filing including attendance records, assessments, and certificates
• depa grant application support for eligible SMEs
• Post-training assessment and recommendations for continuing development

Contact us to design a cost-effective AI training programme that maximises your government incentives while building real business capabilities.