BANGKOK, Nov 1 – Thailand’s Revenue Department has been instructed to facilitate relaxing regulations to allow additional tax deductions from taxable income for corporations and individuals who contribute financial support to research and development.
Speaking to a seminar on tax reform, Deputy Prime Minister Kittiratt Na Ranong said Thursday that he had assigned the revenue department to study the plan in detail to be implemented in the 2013 tax year.
He said the government could allow further tax deductions –more than double the existing rate– for corporations and individuals provided that they provided funding for research.
If corporations conduct in-house research or jointly with a state agency, they could be entitled for two or three times of tax deduction from their taxable incomes.
Mr Kittiratt conceded that the plan, if implemented, would see state revenues declining but the government will eventually benefit from advanced research and development. It will encourage more participation of the private sector in R&D.
In addition, the government will offer more tax benefits for those whose funding goes directly to educational institutions or to sports associations.