24 May 2016
THAILAND: Tax Breaks Mooted for Investors in 10 High-tech Sectors
Tax breaks are to be introduced for investors in 10 high-tech sectors in Thailand. The move will see any venture capital fund or private equity firm investing in such sectors exempt from corporate income tax and dividend tax for 10 years.
The 10 designated sectors are:
- Next-generation cars
- Smart electronics
- Affluent, medical and wellness tourism
- Agriculture and biotechnology
- Robotics for industry
- Logistics and aviation
- Biofuels and biochemicals
- Digital services
- Medical services
Qualifying VC funds and PE firms have until 31 December to register with Thailand’s Securities and Exchange Commission and demonstrate minimum capital of Thai Baht 20 million (US$0.56 million) to qualify for the tax waiver.
The tax incentives have been introduced as part of the Thai government’s bid to boost investment in technology start-ups in the designated sectors, according to Science and Technology Minister Pichet Durongkaveroj. The minister also announced plans to set up a Thai Baht 500 million (US$13.6 million) capital fund by the end of 2016. This will invest in technology start-ups in the selected sectors in partnership with private sector investors.