According to a report published by Thairath, the government of Thailand is committed to promote its digital economy, and as a result, has declared that the income taxes and dividends of venture capital (VC) firms will be waived for a period of 10 years.
This is to encourage investors to invest in startups and businesses within the 10 supported industries, which include robotics for industry; smart-electronics; food; aviation and logistics; medical services; biofuels and biochemicals; medical and wellness tourism; agriculture and biotechnology; digital; and next-generation cars.
Additionally, the Ministry of Science and Technology, in collaboration with several venture capital companies, has agreed to the creation of a VC fund worth $14 million (500 million baht), and has dedicated it to these startups.
Deputy Minister of Finance Wisuth Srisuphan says, the tax exemption also extends to individuals who have contributed to the partnered VC funds, and will be eligible for new businesses and startups established between the 1st of October to the 31st of December this year.
“The government will be establishing a dedicated asset management firm to manage the fund, which will be directed mainly at technology businesses within the 10 core industries,” said Minister of Science and Technology, Pichet Durongkaveroj. He added, “These two bills represent the government’s desire to push Thailand towards a sustainable economy. The government hopes to encourage VCs to have a part in the development of the business sectors, which will not only help to establish a digital market base in Thailand, but also to help hasten its growth as well.”
Currently, the Ministry of Science and Technology is proposing a bill which will enable VC companies to effortlessly deliver patents to businesses in an effort to help them reach their full potential. This is an effort to hasten the patent sharing between businesses and research institutions, so that the latter can constantly provide the former with the needed research and innovation. If this bill passes, it will mean that government research funds will be accessible to the private sector for the purpose of developing and researching new technology.