The Board of Investment (BoI) agreed on Wednesday to upgrade investment privileges for projects in the government's flagship Eastern Economic Corridor (EEC) to make them more enticing and promote human resource development.
Duangjai Aswachintachit, secretary-general of the BoI, said the upgraded version extends privileges to cover investment projects located outside the EEC's industrial estates and promotion zones. The privileges also cover investment in target technology development categories such as biotechnology, nanotechnology, advanced materials and digital, as well as electronic design, R&D and scientific testing services.
Under the upgraded privileges, investment projects located outside the EEC's industrial estates and promotion zones will be entitled to a corporate income tax exemption for 5-8 years. They will also be allowed to enjoy an additional 50% reduction of corporate income tax for three years if they invest in human resource development.
Ms Duangjai said investment projects located in special promotion zones such as EEC of innovation (EECi), EEC of digital (EECd), EEC centre of aviation (EECca) and the EEC medical centre (EECmd) at Thammasat University's Pattaya campus will be also allowed to enjoy an additional 50% reduction of corporate income tax for two years.
"The government is hopeful the upgraded privileges will attract more investment in human resource development to address a labour shortage in the area," she said.
Ms Duangjai said to qualify for the upgrade, investors who want to set up their factories outside the EEC's special promotion zones should submit their applications from Jan 2, 2020, to December 2022.
There is no expiry date for investment applications in the EECd, EECi, EECca and EECmd.
She said the board also approved extending promotional packages to small and medium-sized enterprises until February next year from the end of this year.
The board also instructed the BoI and related agencies to speed up improving investment packages for agriculture, tourism and services. Details of the perks should be proposed at the next BoI meeting in February, said Ms Duangjai.
The board approved investment applications for four projects worth a combined 30.2 billion baht in ethanol production, car and motorcycle tyres and metal extraction.