Thailand Offers Tax Deductions on R&D
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.
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