Tax-exempt startup investment

           Tax measures to promote fundraising for Thai startups have been officially announced, with personal or corporate income tax exemptions for capital gains tax for Thai startups, effective for 10 years (until June 2032).

           Such measures make it easier for Thai startups to raise more funds from investors and will have a positive effect on the country’s economic growth.

The requirements for tax privileges for the investments in Thai startups are as follows:

1.  Businesses must use technology and must engage in targeted industries as stipulated by the government;

2.  Income derived from the use of technology must account for 80% of total income;

3.  The business must be certified by NIA or NSTDA or DEPA with one of the following characteristics:

• Technology is applied in the production process or service provision in the core business. The business requires technology as a base in the production or service process, or else business operations would be impractical;
• Technology is used to significantly increase the value of products or services.

Targeted industries with tax privileges include the following:

1)  Modern automotive industry;

2)  Smart electronics industry;

3)  Quality tourism industry;

4)  Agriculture and biotechnology industry;

5)  Food processing industry with high added value;

6)  Robotics industry;

7)  Aviation industry;

8)  Biofuel and biochemical industry;

9)  Digital industry;

10)  Comprehensive medical industry;

11)  National defense industry;

12)  Industries that directly and significantly support the circular economy, such as fuel production from waste, water resource management, etc.;

13)  Human resource development and research and development for targeted industries;

14)  Other targeted industries in line with the 20-year national strategy as approved by the Policy Committee.