Asia: Thailand government introduced tax incentives to support SME

The Thai government plans to introduce more tax incentives, by way of waiving capital gains and corporate income taxes, in its bid to heighten interest in and venture into local start-ups. The draft bill is targeted to benefit venture capital and investors, as the bill is aimed to go before the cabinet this year.

For start-ups to be entitled to the tax privileges, they were required to sign up from Oct 1 to Dec 31 last year, and have a minimum registered capital of 5 million baht and an annual revenue not exceeding 30 million baht (USD $900,000).

Director for New Ventures at the National Science Technology and Innovation Policy Office, Mr Chinawat Chinaprayoon, said that the incentives are intended to help Thai start-ups compete in the international arena, with the goal to be on par with those offered in neighbouring countries. He noted that the system was implemented successfully in Israel, saying it allows start-ups to collapse and set up a new business up to five times, which gives businesses more room and opportunity to succeed.

RFi Group data for SME Banking Council (17H1) shows that four out of ten SMEs in Thailand are still relatively young and have been operating for less than 5 years. Among them there are 7% of infant SMEs which having been in operation for less than 2 years.

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