1. Thailand’s Board of Investment (BOI) offers a range of tax and non-tax incentives to foreign companies making investments that are deemed highly beneficial to the Thai economy.
2. The BOI announced a new seven-year investment promotion strategy (2015-2021) that offers special privileges to foreign investors.
3. Under the strategy, tax-based incentives are granted according to the group classification (A or B) for the activities and the merit of the project.
ACIVITIY-BASED INCENTIVES
1. A1: Knowledge-based activities, focusing on R&D and design to enhance the country’s competitiveness.
2. A2: Activities in infrastructure for the country’s development, activities using advanced technology to create value-added, with none or very few existing investments in Thailand.
3. A3: High technology activities which are important to the country’s development, with a few investments already existing in Thailand.
4. A4: Activities with lower technology than A1-A3 but add value to domestic resources and strengthen supply chain.
NON HIGH TECH INDUSTRIES (CATEGORY B1-B2)
1.The following tax incentives are granted for certain eligible activities under B1 or B2 category:
2. 50 percent corporate income tax (CIT) reduction for a maximum of ten years.
3. Deduction from net profit for ten years of up to 70 percent of the investment amount in addition to the normal depreciation deductions.
Investing in Thailand: Tax and Non-Tax Incentives
MERIT-BASED INCENTIVES
1. Projects located in twenty provinces having the lowest per capita income will receive:
2. Three additional years of CIT exemption;
3. An additional 50 percent reduction in CIT for five years;
4. Double deductions from the transportation, electricity and water supply costs for 10 years; and
5. Additional 25 percent reduction of the installation cost.
OTHER INCENTIVES
1. There are several other incentives available to businesses operating in the following regions:
2. Industrial estates/promoted industrial zones;
3. Science and technology parks;
4. Provinces of Southern Thailand or four districts in Songkhla;
5. Special Economic Zones (10 in number); or
6. Eastern Economic Corridor (EEC).
7. Permission to bring in skilled personnel and expert into Thailand to work in investment promoted activities;
8. Permission to own land; and
9. Exemption of import duty on machinery and imported raw materials.
(Source: aseanbriefing)
