December 3, 2021 – at the Economic Situation Management Committee Meeting on the Effects of the Outbreak of Coronavirus, led by H.E. General Prayut Chan-o-cha, Prime Minister of the Kingdom of Thailand, approved the proposal of The Digital Council of Thailand, led by Mr. Suphachai Chearavanont, Chairman of Digital Council of Thailand (DCT) and its partners, issuing a royal decree of “0% Capital Gains Tax”, a tax benefit attracting investors to invest in startups and tech companies in Thailand as a driving force for the digital economy and transformation.
The Chairman of the Digital Council of Thailand (DCT) Suphachai Chearavanont has remarked the current global challenges forcing Thailand to transform which are capital inclusiveness, digital transformation, global sustainability, and climate change. To ensure our success, we must adapt to keep up with a new technology 5.0 era, including people development, startups’ promotion, and investment’s attraction. Hence, Thai government prepares to push electric vehicles (EVs), data center and software industry which are the fundamentals that attract world-class entrepreneurs to build digital economy for the country. In addition, Thailand has a huge opportunity to export culture (Soft Power) to enquire further investment and additional value in terms of increasing the number of people with new knowledge in technologies.
Today’s approval is a part of the law and regulatory uplift that includes taxation schemes that will enable Thailand to compete with neighboring countries including Singapore, Indonesia, and Malaysia. According to DCT’s survey with startups, local and international investors, this law and regulatory uplift is considered as a major factor along with other factors such as digital skills that Thailand is urgently need. This will create the incentive to Thai startups who registered in other countries to come back to Thailand, and to attract more foreign investment in Thailand. From this point onwards, the Ministry of Finance, the Revenue Department and DCT will work together on the details of the royal decree of “0% Capital Gains Tax” scheme aiming to be enforced by early 2022. The detailed proposal of the Capital Gains Tax scheme including other schemes that will strengthening Thailand’s Ecosystem by raising investment in innovation and startups will be proposed to the Prime Minister at the Economic Situation Management Committee meeting again within one month from now.
This success from DCT and its partners in attracting more local and foreign venture capitalists to invest in Thai startups will uplift Thailand’s Digital Ecosystem as a whole. The new taxation scheme is one of the law and policy framework among important strategies that will push Thailand to be a global economy hub. Other countries in ASEAN region such as Singapore, Indonesia, and Malaysia, have introduced attractive Capital Gains Tax rate that aimed at attracting large amount of foreign investment. By introducing the new taxation scheme, Thailand will be able to accelerate its startups’ growth and its ability to compete with neighboring countries. The objective of such scheme is to push Thailand to have at least 20% of the regional investment in startups.
Collaborations from all stakeholders would help uplift the economy of Thailand. Moreover, this is the important first step, and a great opportunity to attract investors from local and abroad to add value to Thailand’s economy. From this point, DCT is promptly working with all relevant government agencies to drive this policy encouraging investment in technology, innovation, and startups to Thai entrepreneurs so that tangible outcomes would be quickly achieved.
DCT would like to express its gratitude, and compliment to the government, leading by the Prime Minister and all relevant government agencies, for emphasizing the importance of investment encouragement that will go to tech companies and startups in Thailand. This is a great beginning to show the power of collaborations from all relevant government agencies including Ministry of Finance (MOF), Office of the National Economic and Social Development (NESDC), Revenue Department (RD), Securities and Exchange Commission (SEC), National Innovation Agency (NIA), Office of National Higher Education Science Research and Innovation Policy Council (NXPO). The collaborations from private sectors include Thai Startup Trade Association, Innovation Club Thailand, Thai Venture Capital Association (TVCA), Techsauce. In addition to Thai and International venture capitalists and angel investors, there are 500 Tuktuks, Krungsri Finnovate, Openspace Ventures, Beacon Venture Capital Limited, Fuchsia Venture Capital Company Limited, and N-Vest Venture. Finally, from startups and tech SME side, there are Amity, QueQ, Omise, Daywork, Finnomena, Ookbee, Claimdi, System Stone, PEAK, My Cloud, Ira Concept, The Existing Company, Stock Radar, Snail Walk, Arincare, Chiiwii, Smart Contract, and Indy Dish.