To help improve the performance of small and medium enterprises (SMEs), which are defined as entities with no more than Baht 5 million of paid-up capital and sales revenues of no more than Baht 30 million per annum, the Thai government has approved the following tax measures:

– Corporate income tax exemption on income derived between 1 January 2012 and 31 December 2012 from the sale of machinery used in the manufacturing process or for manufacturing services, in order to purchase replacement machinery.

– The Revenue Department will provide special conditions and rates relating to amortization and depreciation of machinery used in the manufacturing process or for manufacturing services, for the period 1 January 2012 to 31 December 2012.

– A corporate tax exemption equal to 50% of the difference between wage expenses under the previous minimum wage rate and those under the current minimum wage rate (i.e. Baht 300) for the period from 1 April 2012 to 31 December 2012.

Further details on the implementation of these measures and associated regulations have yet to be announced. Contact MSNA for more updates.