The Board of Investment yesterday approved a two-year extension of investment privileges in the special promotion zones of the Eastern Economic Corridor (EEC).
Existing privileges, including a corporate income tax exemption for eight years and a 50% reduction in corporate income tax for an additional five years after the tax holiday, are scheduled to expire at the end of this year.
According to Board of Investment (BoI) secretary-general Duangjai Asawachintachit, the board meeting chaired by Prime Minister Prayut Chan-o-cha also approved an extension of the corporate income tax exemption from the existing eight years to 10 years and a 50% cut on corporate income tax for an additional five years after the tax holiday.
The new perks will be offered to investors in three special zones at the EEC, while applicants for the new privileges are also required to cooperate with educational institutes, research centres or other excellence hubs on human resource development and training of employees.
The three special promotion zones are the aviation promotion zone at U-tapao airport, the Eastern Economic Corridor of Innovation (EECi) and Digital Park Thailand (EECD).
According to Ms Duangjai, the board yesterday also approved measures to support small and medium-sized enterprises to upgrade their capability, allowing those who win BoI privileges and list on the Market for Alternative Investment (MAI) to enjoy a double corporate income tax exemption.
The board approved privileges for new investment categories, namely trading centres and integrated manufacturing centres, in a bid to promote more investment in 10 border special economic zones (SEZs).
Investment projects located in SEZs in 10 border provinces will be allowed to enjoy eight years of corporate tax waivers and a 50% reduction in corporate income tax for an additional five years after the tax holiday.
Projects located outside of SEZs will be afforded a corporate income tax exemption only for five years.
In a related development, the board yesterday approved privileges for NokScoot, a joint venture of Singapore's Scoot and Thailand's Nok Air, for a total investment of 6.57 billion baht.
Investment in the three EEC provinces (Chon Buri, Rayong, Chachoengsao) in the first nine months of 2017 totalled 104 billion baht, with investment in the 10 targeted industries making up 67.8 billion baht.
For the same period, the BoI said investment applications amounted to 370 billion baht, up 8% year-on-year.
Ms Duangjai said she remains confident that total investment applications will reach the targeted 600 billion baht in 2017, adding that many huge projects are in the process of applying for BoI privileges.
