The Eastern Economic Corridor (EEC) Office is scheduled to sign a memorandum of understanding (MoU) next week with the China Development Bank (CDB) and the Japan Bank for International Cooperation (JBIC) for financial support of investment projects.
Nathporn Chatusripitak, spokesman for Deputy Prime Minister Somkid Jatusripitak, said the cabinet on Tuesday approved the draft MoU that is scheduled to be signed by the three parties next Tuesday in Beijing.
CDB is a state-owned bank focusing on providing loans and investment for infrastructure projects and other development projects in China. CDB also supports overseas development projects in response to the government policy for sustainable growth and Chinese companies' active overseas expansion.
JBIC is a policy-based financial institution with shares wholly owned by the government. It aims to contribute to the sound development of the Japanese and international economies.
Mr Nathporn said two foreign agencies will support financing the high-speed rail linking the three major airports of Don Mueang, Suvarnabhumi and U-tapao, as well as an aviation city and a smart city, and logistics development in the Greater Mekong Subregion.
In a related development, he said the cabinet approved reinstating the corporate income tax cut to 10% from 20% for 10 years for those investing in special economic zones in 10 provinces.
The private sector can submit requests until Dec 30, 2020. The government implemented the tax incentive the past decade, expiring in 2017.
The government is expected to lose 4 million baht worth of revenue from the tax cut.
The cabinet also approved a corporate income tax exemption for companies that participate in a scheme to reduce the greenhouse effect, especially for selling carbon credits both domestically and abroad.