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Land and Building Tax Act in Thailand

11 Oct Land and Building Tax Act in Thailand

On June 7th 2016, the draft of the Land and Building Tax Act was approved by the Thai government. This Act became effective in January 2017 and will replace the existing and old Building and Land Tax ...
Getting Married in Thailand

07 Mar Getting Married in Thailand

Getting married in Thailand – a place where surreal views and pristine waters surround the country. A place full of different cultures and ethnicity, it’s no wonder that many wish to get married h...
Christian with DELSK management team in Beijing June 2016

30 Jun In Beijing J&C meets Delsk and China’s leading law firm

Our German lawyer Christian has travelled to Beijing from 15th to 17th June 2016 to meet with the management team of China's leading second residents company DELSK and with our future partner law firm...
 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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