Government promotes business to invest on R&D,offering up to 300% tax rebates



BANGKOK: -- The government is moving ahead with its plans to promote research and development (R&D) by allowing tax rebates as high as 300% to businesses.

Wisudhi Srisuphan, the deputy finance minister, revealed yesterday that the ministry was coordinating with the Ministry of Science and Technology to attract more businesses in the private sector into investing in R&D programs.

The plan is to allow these companies with investment cost in R&D not over 3 million baht to then deduct these costs from their taxes.

Previously, the maximum allowance was double these costs but the new plan will allow a threefold or 300% rebate.

Meanwhile the Revenue Department is making preparations to introduce a plan to allow a twofold tax deduction for companies that hire elderly employees.

Prasong Phunthanet, the director-general of the Revenue Department, revealed that the department was preparing to introduce a plan for the Finance Ministry as well as the cabinet to approve.

The plan aims to promote the hiring of more elderly employees not exceeding 65 years of age by businesses by allowing a twofold tax rebate on the associated hiring expenditures.

These rebates however must not exceed 10% of their entire hiring costs.

However the plan is valid only for hiring elderly people not over 15,000 baht a month as the government wanted to encourage the private sector to employ only lower level employees only.

If the plan is approved, companies can take advantage of the rebates in their 2016 corporate tax year.

Source: http://englishnews.thaipbs.or.th/government-promotes-business-invest-r-doffering-300-tax-rebates/


-- Thai PBS 2016-07-07

R & D research with uneducated workers and old people for no more than 15k

besides plastic crap what has THAILAND every developed the world needs besides selling a lot of phones to the village people.

Wow, such amazing incentives.

R&D rebates but only for budgets below 90,000 USD, so thats every medium and large company excluded.

Rebate for hiring elderly but only on salaries of 15,000 baht a month or less and not exceeding 10% of hiring costs, a tax rebate on the 10% of hiring costs,, wow.

These will make such a difference and really sway the decision for companies who are deciding where to invest.

Meanwhile Vietnam has lifted restrictions and now allows 100% foreign ownership, easy visas, no minimal capital investment and no quota on hiring locals.

Which to chose,,,? It's a tough one.

allowing tax rebates as high as 300% to businesses

Rebate or deduction?

In March 2016 the Ministry of Science and Technology kicked off the CEO Innovation Forum 2016 by announcing a 300% tax deduction for companies that support research, development and innovation.

Thailand spends only 0.25% of its gross domestic product on R&D while Malaysia spends triple that and Japan spends twelve times that.

http://www.nationmultimedia.com/business/Govt-told-to-focus-on-R&D-cut-down-on-graft-to-boo-30252959.html