BANGKOK, 30 January 2018 (NNT) The cabinet has approved tax cuts for private donations to the government's innovation funds until 31 December 2019.

Prime Minister's Office Advisor Nattaporn Jatusripitak revealed the cabinet has approved the reduction in the personal income tax and corporate tax due to the donations provided to the government's foundation for science and technology development, the foundation for research support, the foundation for meteorology development, and the foundation for public health system development.

The tax scheme is offered to encourage more support from the private sector on national research and development, as well as scientific and technological development.

Donations to applicable foundations can be used to deduct from the taxable income at twice the actual amount, but no more than 10 percent of the annual income when combined with donations to educational purposes.

Donations will be counted as eligible from the date on which the scheme is officially effective, until 31 December 2019. The government expects to lose some 60 million baht in tax revenue under the scheme, but will ensure the availability of funding for the research sector, which will help raise the country's competitiveness.

Thailand currently only has 0.7-0.75 percent allocated financial support for research from all kinds of financial support.

The cabinet has also approved tax benefits for investors in start-up businesses, so called angel investors, which allow investment expenditure on start up businesses from 1 January 2018 to 31 December 2019 to be reduced from the taxable income by a maximum of 100,000 baht each.

National News Bureau Of Thailand | Tax cuts provided for private donations to govt's innovation funds