The Board of Investment (BoI) yesterday approved a raft of tax measures for investment projects that aim to upgrade the quality of life for both Thai and foreign workers, while also driving the country's technological development.
Duangjai: Eye on science, technology development
The BoI is offering promotional privileges for a new investment category -- a smart logistics hub in the Eastern Economic Corridor (EEC). Qualifying investors will receive eight years of corporate tax exemptions on revenue incurred from offering international logistics services.
Qualifying candidates are required to invest at least 1 billion baht and hire at least 20% Thai staff working in artificial intelligence, smart warehouses, data centres, data science, data analytics and digital transactions.
Investors are also required to offer training on big data and data analytics and conduct R&D for educational institutes in Thailand.
Duangjai Asawachintachit, secretary-general of the BoI, said to promote investment in science and technology, investors in the Eastern Economic Corridor of Digital or Eastern Economic Corridor of Innovation will be entitled to the maximum corporate income tax exemptions for 13 years, up from 10 years.
Meanwhile, those who invest in the Science and Technology Park, which is located outside of the EEC, will also be allowed to enjoy corporate tax exemption for 12 years.
The board also approved tax privileges for smart city development to facilitate investment in transport projects, education, safety, the ease of doing business, state services, the energy sector and the environment.
Qualifying investors will enjoy eight years of corporate tax exemption.
Developers or industrial estate operators who build smart cities are also required to invest in infrastructure such as fibre optics, public WiFi and open data platforms.
In addition, the board also endorsed promotional privileges for construction of housing for both Thai and foreign workers. The lodgings must comply with International Labour Organisation standards.
Investors will be allowed to operate nationwide, with three years of corporate income tax exemption, except those investing in the special economic zones (SEZs) in 10 provinces, where corporate income tax exemption of six years is allowed.
In a related development, yesterday the board also approved the extension of its promotional privileges for those SEZs, which are due to expire on Dec 30, for another two years.
The ten SEZs are Tak, Trat, Mukdahan, Sakaeo, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat.
Ms Duangjai said investment applications submitted to the BoI in the first quarter covered 366 projects, up 27% from 288 projects in the same period last year, with investment worth 205 billion baht, up 247% from 59.1 billion.
The investment in the EEC during the first quarter totalled 160 billion baht covering 66 projects, up from 59 projects worth 12.34 billion baht in the same quarter of last year.
The BoI is aiming for 720 billion baht in investment applications this year, up from 640 billion last year, with investment applications in the EEC targeted at 300 billion, up from 290 billion.
The BoI yesterday approved investment privileges for six projects valued at 37.7 billion baht.