Thailand’s government last month approved corporate income tax exemptions for investments in local startups if they operate in one of the 14 government-promoted industries.
Corporate venture capital (CVC) funds can be registered in Thailand or abroad and these benefits are available until June 30, 2032.
Corporate income tax (CIT) exemption is for profits derived from the transfer of shares in Thai startups.
Prior to the transfer of shares, the shareholder must have held the shares for at least 24 months. Further, the startup must engage in one of the target industries and derive at least 80% of its revenue from the targeted activities in two consecutive accounting periods before the shares are transferred.
The targeted industries for startups are divided into three groups:
New S-Curve industries:
- Aviation and logistics;
- Biofuels and biochemicals;
- Robotics;
- Digital economy; and
- Medical hub.
S-Curve industries:
- Smart electronics;
- Medical and wellness tourism;
- Affluent tourism;
- Agriculture and biotechnology; and
- Food for the future.
Additional industries:
- Defence and education; and
- Human resource development.
