Thailand Offers Tax Deductions on R&D

May 4, 2014 Posted by ASEAN Briefing Reading Time: 2 minutes

Thailand’s National Science and Technology Development Agency (NSTDA), in conjunction with the Revenue Department and Ministry of Science and Technology, has launched an online expense certification service to help businesses demonstrate they meet the qualifications necessary for a 200 percent research and development (R&D) tax deduction.

While several companies in Thailand are eligible for an R&D tax deduction, only a small proportion of those companies with qualifying R&D investments have requested tax exemptions due to inconveniences and inefficiencies in the current system and concerns over confidentiality.

According to the NSTDA, the new online system is “fast, provides data security, and is convenient to monitor with follow up and support.” Because of this, many more businesses are expected to qualify for and claim an R&D tax deduction.

The new system is expected to reduce the project approval period to one or two months and bolster R&D to around one percent of Thailand’s GDP within the next three years.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email thailand@dezshira.com or visit www.dezshira.com.

Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.

Related Reading

The Gateway to ASEAN: Doing Business in Singapore 2014 (Second Edition)
Dezan Shira & Associates’ Singapore business guide will provide readers with an overview of the fundamentals of investing and conducting business in Singapore. The 2014 edition explains the basics of company establishment, annual compliance, taxation, human resources, payroll and social insurance in the city-state, in addition to how a company established there can be used to conduct business in the wider ASEAN and Southeast Asian region.