The Thai government announced this week three tax amendments aimed at improving competitiveness within mid- to large-sized companies.
The first change concerns venture capital. At the moment, companies enjoy income and dividend tax exemptions associated with investments in small and medium-sized enterprises (SMEs) only if the investment period is no less than seven years. The new rules reduce the required investment period to five years, and three years if firms list SMEs on the bourse.
The second of these measures exempts Thai companies with a 25 per cent stake (or greater) in an overseas firm from the 15 per cent withholding tax levied on dividends.
Under the third amendment, corporates relocating their plants to industrial estates to reduce pollution will be reimbursed from the special-business tax.
The exemption will last five years from the date of implementation.
Source: Asia Intelligence Wire
