Thailand Venture Capital Business Tax Structures
Update | February 2017
On 13 Feb 2017, Royal Decree (No 636) was gazetted, extending the 10 years income tax exemptions for a Venture Capital Business under Royal Decree (No 597) to a VC business that is registered with the Securities and Exchange Commission between 01 January 2017 and 31 December 2018. This Tax Insight has been updated for the extended period of time prescribed in Royal Decree (No 636).
Tax Insight | February 2016
On 24 Feb 2016, Royal Decree (No 597) was gazetted, providing income tax exemptions for Venture Capital Businesses. This Insight article summarizes the prescriptions in Royal Decree (No 597).
Venture Capital Business
A Venture Capital Business is a Thailand company or Investment trust that:
* As prescribed in Royal Decree (No 597) issued on 10 February 2016.
** As prescribed in Royal Decree (No 636) issued on 12 February 2017.
Targeted Industry Business Types
A Targeted Industry Business is a business that operates within the Government-promoted 10 targeted industries types, as follows:
The Tax Concessions
A Venture Capital Business that complies with all of the rules, procedures and conditions is entitled to exemptions from income tax under Royal Decrees (No 597) and (No 636) for 10 financial years, as follows:
Rules, Procedures and Conditions
A Venture Capital Business that wishes to claim the above tax concessions shall:
As a corporate entity claiming tax concessions in Thailand, it is likely that it will be rigorously audited by the Thailand Revenue Department's tax audit officers, and if the tax audit officers should find any of the rules, procedures and conditions has not been fully complied with, the corporate entity could lose its entitlement to the concessions and be required to pay back-taxes at the normal rates of tax plus penalty and surcharge.
This is a general information Tax Insight Article only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.