The Board of Investment (BoI) on Monday approved a new investment package to make next year "the golden year of investment".
The new package includes a 50% reduction in corporate income tax for an additional three years after the tax holiday for large investment projects worth more than 1 billion baht, excluding land cost and working capital.
Projects applying for BoI promotional privileges are already entitled to corporate income tax exemption for 5-8 years.
Eligible projects are required to submit their proposals to the BoI from Nov 19 this year to Dec 31, 2019.
Duangjai Asawachintachit, the BoI's secretary-general, said projects that have already submitted applications to the BoI, but have not yet been implemented, are allowed to re-submit applications for the additional privileges.
The BoI meeting chaired by Prime Minister Prayut Chan-o-cha also approved promotional privileges to promote and upgrade the competitiveness of community businesses. Investors that agree to invest in community enterprises are allowed to enjoy additional corporate income tax exemption for three years from existing BoI-promoted projects.
Investors are required to invest at least 1 million baht per project. If they invest in several projects, the minimum investment is required to be at least 200,000 baht per project.
Investors are also allowed to invest in a wider scope for community businesses to cover tourism and light industries in addition to the farm sector.
Ms Duangjai said the board also approved promotional privileges for smart cities to promote investment that covers land development, smart city systems, and smart industrial estates or zones.
Investors are allowed to enjoy corporate income tax exemption for 5-8 years. If investment projects are located in the Eastern Economic Corridor they will be entitled to a 50% reduction in corporate income tax for an additional five years after the tax holiday.
The board also approved a measure to promote an innovation incubation centre and allowed the BoI to offer investment privileges to makerspaces or fabrication laboratories.
Ms Duangjai said the BoI approved measures to support BoI-promoted projects to list on the Stock Exchange of Thailand. Those agreeing to list can enjoy a 100% corporate income tax exemption on their investment capital (excluding land costs and working capital). The measure will be open from Nov 19 to Dec 30, 2020.
In another move, the board agreed to allow promoted projects to hire legal foreign workers without any limitations from Jan 1 onwards. Under the requirement, promoted products are allowed to hire only unskilled foreign workers from countries with which Thailand has entered a memorandum of understanding.