The New BOI Act promotes technology and offers additional incentives
published : 31 Mar 2017 at 09:48
Investment in Asia, especially in Thailand, is growing significantly. Therefore, the Thai government, under the leadership of Prime Minister Gen. Prayut Chan-o-cha, has encouraged related government agencies to take measures to boost investment in the country, improve the investment environment to be ready for "Thailand 4.0" and to become the world’s investment destination.
The Office of the Board of Investment or the BOI is the government agencies playing an essential role in promoting investment in Thailand and propelling the Thai economy in accordance with the 12th National Economic and Social Development Plan, which puts emphasis on developing human capital, science, technology and innovation as well as strengthening the country’s economy.
BOI has forged new investment tools for attracting investment to the country by launching the Amended Investment Promotion Act (No. 4), which entered into force on January 25, 2017. This amended Act from the BOI has specified 10 targeted industries and gives first priority to "Human Resources and Technologies".
The main objective of this Amended Investment Promotion Act B.E. 2560 is to grant maximum incentives to projects in high-tech industries, which are categorized as follows:
1. Targeted Core Technologies: Incentives will be granted to 4 groups of business activities related to 4 core technologies, (1) Bio-Technology (2) Nano-Technology (3) Advanced Material Technology and (4) Digital Technology
2. Enabling Services for Targeted Core Technologies: Incentives will be granted to the following investment activities: R&D, Vocational Training Centers (specialized in science and technology), Electronics Design, Engineering Design, Scientific Laboratories and Calibration services
New BOI's Investment Incentives
- Corporate Income Tax Exemption up to 13 years
- 50 Percent reduction of Corporate Income Tax rate up to 10 years
- Exemption of import duty on machinery, raw and essential material (used for export products) and products used for R&D purposes
- Non-Tax incentives e.g. rights to own land, permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities