Siena:The government has proposed to extend the tax incentives for angel investors by four more years. This initiative aims to encourage more investors to provide capital funding to technology start-up companies during their pre-seed and seed stages.

According to BERNAMA News Agency, The Finance Ministry's tax measures document indicates that angel investors who invest in ordinary shares of technology start-ups at these stages are eligible for a tax exemption. This exemption applies to the individual aggregate income equivalent to the investment amount made in these companies. Originally, the tax incentive was available for investments made from January 1, 2013, to December 31, 2026. The extension means it will now apply to investments made from January 1, 2027, to December 31, 2030.

Additionally, the government has proposed extending the Accelerated Capital Allowance (ACA) on capital expenditure for plant, machinery, and information and communications technology (ICT) equipment. This measure is intended to boost domestic direct investment and accelerate the adoption of digital technology in businesses. The ACA provides an initial allowance of 20 percent and an annual allowance of 40 percent on qualifying capital expenditure, allowing companies to fully claim it within two years.

Qualifying capital expenditures cover the procurement of heavy machinery, plant and general machinery from local manufacturers, and purchases of ICT equipment and computer software packages. The expenditures also include consultation, licensing, and incidental fees related to the development of customized computer software. Previously, this tax incentive covered capital expenditure incurred from October 1, 2025, to December 31, 2026. With the extension, it is now applicable for qualifying capital expenditure from January 1, 2027, to December 31, 2030.