Finance to speed up law to promote joint venture startups

The National Start Up Committee says it is speedily drafting a legislation that will exempt capital gain tax for start-up business that is jointly invested by Thai and foreign investors.

The move is aimed at attracting more foreign investors to the joint venture so that Thai investors will be strengthened.

The legislation was revealed at the meeting of the National Startup Committee yesterday.

The meeting also agreed to forward the legislation to the Finance Ministry for consideration before tabling it for Cabinet approval.

The Finance Ministry will also be asked to propose the prime minister to exercise Section 44 of the interim Constitution to speed up the promulgation procedure so that the legislation could be enforced within this year.

Director of the National Innovation Agency Mr Phan-art Chairat said the law will give tax privileges to joint venture startups, particularly the exemption of capital gain tax from stock tradings in the stock market up to five years.

He said this tax incentive would help to strengthen Thai startup business and attract more foreign investors to invest in Thai startups.

He said qualified startup for the tax privileges must be registered as juristic body for at least 60 months and must be an innovative business and has its own research and debelopment plan.

The law does not specify the amount of startup capital.

Currently there are 500 startups that can mobilize funds to develop their business from a total of 1,500 startups that have registered.

There are also 8,500 startups that have not yet registered as juristic bodies.

Source: Thai Public Broadcasting Service (Thai PBS)

Post Author: thailandmirror.com