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Property Purchase Pitfalls

07 Mar Property Purchase Pitfalls

Purchasing Property In Thailand It is recommended that you discuss your options and the process of purchasing in Thailand as a foreigner as it is essential to know the legalities involved in such an a...
Lebensqualität unter tropischer Sonne

6 Oct Lebensqualität unter tropischer Sonne

Thailand erfreut sich unter vermögenden Europäern großer Beliebtheit und so steigt der Wert luxuriöser Eigentumswohnungen in der Metropole Bangkok und in Ferienorten kontinuierich. Während auslä...
Regulatory Framework For Accounting in Thailand

20 Oct Regulatory Framework For Accounting in Thailand

This article Regulatory Framework For Accounting in Thailand outlines which business entities have to keep accounts, what accounting data they must report, and to whom they must report. ...
 Tax Incentive for New Startup Businesses

Tax Incentive for New Startup Businesses

Another generous tax incentive for investors in Thailand is now launching. On 18th April 2016, Royal Decree (No. 603) was promulgated to support and promote Small and Medium Enterprises (“SMEs”) by exempting a broad range of SME activities from Corporate Income Taxes for 5 fiscal periods.  The purpose for the incentive is to strengthen the country’s competitive capabilities by encouraging investments in SMEs which use technology and innovation in a list of targeted businesses.

Who is entitled for this incentive?

A company or juristic partnership newly formed under the laws of Thailand satisfying the following conditions:

1. Set up and registered between 1st of October 2015 to 31st of December 2016;

2. Paid-up registered capital is not more than THB 5 million in the fiscal period;

3. Income derived from the sales of goods and service is not more than THB 30 million in the fiscal period, and

4. Not less than 80% of its total income must be derived from the sales of goods and/or services in a “New Engine of Growth” business or from a connected business thereof.

What is a New Engine of Growth business?

A New Engine of Growth business is an industrial business whose technological base will be used for producing goods and providing services, and those business shall be certified by the National Science and Technology Development Agency (“NSTDA”). The following are the industrial businesses which are entitled to obtain the tax incentives:

1. Food and Agriculture

2. Saving energy, Production of alternative and clean energies

3. Biotechnology Base

4. Medical and Public Health

5. Tourism, Service and Creative Economy

6. Advanced Materials

7. Textile, Garment and Decorations

8. Automotive and Parts

9. Electronic, Computer, Software and Information Service

10. Research, Development and Innovation or New Industrial

If the SMEs’ operators meet the specified conditions above, they can apply for inclusion in the incentive program via www.rd.go.th within 31st December 2017. The Revenue Department will notify the applicant of approval or rejection within 15 working days.

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