CIT benefit for purchasing or paying expenses to use software for business

To encourage SMEs to use more software in the business operation, the government is providing additional tax deduction to SMEs who purchase or pay to use software which have been registered with the Software Industry Promotion Agency (SIPA).  The SMEs will be allowed to double the deduction of expenses to purchase or to use software, but the maximum expenses shall not be more than 100,000 Baht for 3 accounting period from January 1, 2017-December 31, 2019.

Qualified SMEs shall have paid-up capital not more than 5 million Baht and Revenue not more than 30 million Baht. 

Employers need to deduct installments for repayment of Student Loan Fund

According to the Student Loan Fund Act year 2017, announced in the Royal Gazette on 27 January 2017, to ensure that the students who took out loans from the government’s Student Loan Fund (Fund), will repay their loan to the Fund, the government, from now, will require all employers whether in government or in private sectors to deduct certain amount of the employee’s monthly salary and return to the Fund through the Revenue Department, the same way as the submission of monthly income tax deduction.

The employers who fail to pay the loan installments to the revenue offices or who pay later than the deadline will have to be responsible for the penalty in the amount of 2% per month.

The Act shall be effective from 27 July 2017 onward.

Foreign Business Act:  19 service businesses exempted from Foreign Business License

On May 26, 2017, the Ministry of Commerce has issued a Ministerial Regulation prescribing business not subject to application for Foreign Business License (No.3) B.E.2560 which specify 19 types of service businesses from List Three annexed to the Foreign Business Act B.E. 2542. As a result, the foreigners can operate business activities listed below without having to acquire the Foreign Business License prior to operation:


  1. Financial institution and business activities related or necessary to the business operations of financial institutions according to Financial Institution Business Act.

         1.1       Commercial bank

         1.2       Bank representative office 

         1.3       Shariah Banking service

         1.4       Banking Agent

         1.5       Deposit service with condition of withdrawal according to customer’s order and escrow service

         1.6              Private Repurchase

         1.7      Agency service of receiving and collecting insurance premium or service charge for export                            guarantee and credit guarantee to customers.

         1.8      Providing financial services to financial institutions, companies in the financial institution                              group, the Bank of Thailand, and government sectors

         1.9      Real estate rental business

         1.10    Purchase or accept transfer of loan

         1.11    Cash management service

         1.12    Service of providing documentation related to the business of customers

         1.13    Agent service of receiving debt payment or application

         1.14    Hire-purchasing and leasing businesses

     2. Asset management business in accordance with the laws of the Asset Management Company. 

     3. Service business as a representative office

     4. Service business as a regional office

     5. Service business that has government sector as contractual party according to Budget Procedure Act

     6. Service business that has State Enterprise as contractual party according to the Budget Procedure Act


Even though the above listed businesses are exempted from the Foreign Business License; however, foreigner must obtain the 13-digit juristic person registration number from the Department of Business Development to DBD which will also be used as a Taxpayer identification number.


The minimum capital of Baht 2 million is still required for foreigner to commence the business operation in Thailand according to the Article 14 of the Foreign Business Act.


The remittance schedule is still that a) not less than 25 % within 3 months from the date of business commencement in Thailand and b) shall not be less than 50% of minimum capital within the first year, c) not less than 25 % of minimum capital must be remitted each of the two following years until the minimum capital reaches of 2 million Baht. The evidence of remittance of the minimum capital into Thailand is not required to submit to the Department of Business Development, but shall be kept as evidence for future inspection.


The Ministerial Regulation is effective from May 26, 2017 onward.