Page 118 - Social Enterprise A New Business Paradigm for Thailand

dissolution. In the case of a corporation or partnership dissolution, two-thirds of remaining
assets must be donated to another social enterprise or public fund.

7. If the organization generates profit, at least two-thirds of the profit must be allocated to social
objectives.
8. No one may use the term “social enterprise” in their business name unless officially certified.
Violators are subject to a fine of up to 10 million won (Articles 20 and 23).

Promotion and Support for Social Enterprises
Social enterprises may receive the following types of support:

1. The Minister of Employment and Labor may provide consulting services and information

essential for the establishment and operation of social enterprises, covering areas such as
business management, technology, taxation, labor relations, and accounting. Additionally, the
Minister may provide education and training programs to develop specialized skills and
enhance the capabilities of social enterprise personnel. These duties may be delegated to
government institutions or private organizations designated by Presidential Decree.
2. The central government and local governments may provide subsidies or financial support to
cover expenses related to land acquisition and the purchase, rental, or use of state-owned

land and facilities required for the establishment and operation of social enterprises.
3. Heads of public agencies are required to promote procurement of goods or services produced
or provided by social enterprises. They must also report their action plans for increasing the
share of social enterprise procurement, along with the performance results from the previous
year, to the Minister. The Minister must compile and publish this procurement information
and historical data to the public.
4. The government and local governments may reduce or exempt national and local corporate
taxes for social enterprises in accordance with laws governing corporate tax, special tax
treatment, and local taxation.
5. The government may partially subsidize social enterprises for costs related to employment

insurance premiums and compensation for employees in the event of work-related accidents,
under the laws governing social security, workers’ compensation, health insurance, and
pensions.
6. The Minister may initiate applications and selection processes for identifying social
enterprises that provide social services deemed eligible for financial assistance. This support
may cover personnel costs, operational expenses, consulting fees, and other expenses related
to their business operations.

7. The government and local governments may reduce or exempt national and local taxes for
associated enterprises, legal entities, or individuals who donate money or assets to social
enterprises. This is subject to the laws governing corporate tax, income tax, special tax
restrictions, and local taxation.

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