SEZ, EEC perks get cabinet nod

SEZ, EEC perks get cabinet nod

Tax measures to spur private investment

Government spokeswoman Naruemon Pinyosinwat
Government spokeswoman Naruemon Pinyosinwat

The cabinet on Tuesday approved additional tax measures to boost private investment in 10 special economic zones (SEZs) and the flagship Eastern Economic Corridor (EEC).

Government spokeswoman Naruemon Pinyosinwat said one of the two measures is a reinstated corporate income tax of 10%, down from 20%. The previous 10% rate expired in December 2017.

The 10-year measure will be offered for investment projects located in the 10 SEZs. Interested investors are required to register with the Finance Ministry by Dec 31 this year.

With the tax cut, the Finance Ministry estimates forgone revenue at 4 million baht a year. The perk is meant to boost private investment in SEZs and create more jobs in border areas.

The other measure is a tax deduction of up to three times annual revenue for private companies that contribute or donate to EEC human resource development institutes focused on Industry 4.0. The tax deduction must not exceed 100 million baht.

This measure will be implemented between Jan 31 and Dec 31, 2020.

The cabinet on Tuesday approved an exemption from value-added tax (VAT) and special taxes for private companies located in the EEC area. The Finance Ministry estimates the VAT exemption to cost 120 million baht in forgone revenue.

Last Thursday, the Board of Investment (BoI) approved a number of stimulus measures to spur investment in domestic projects.

The measures were designed to attract investment in large-scale projects that have significant economic impact from actors of all sizes, from large corporations to community-run businesses.

The measures are a follow-up to the Thailand Plus stimulus package announced by the BoI last September.

Companies will be exempt from paying corporate income tax for 5-8 years, with a 50% corporate tax deduction for the following five years, if they invest at least 500 million baht this year and a minimum total of 1 billion baht by the end of next year in large-scale projects approved by the BoI.

Applications must be submitted by Dec 30.

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