Thai government has initiated many incentive programs to attract investment in SEZ by giving top priority for private sector.
These includes tax reductions and various kinds of support according to targeted industry and types of entrepreneur. There are three important points of SEZ: leading to fast development, building concrete collaboration in ASEAN and increasing potential and create opportunity of investment for entrepreneurs.
SEZ’s operation guidelines are 1) supporting and facilitating investment, 2) enhancing economic activity in local areas, 3) providing economic and social infrastructure, 4) supporting people to participate in development, 5) improving community enterprise and private sector in the areas and 6) managing natural resource and environment.
Target Industrial Sectors
1.General activities under Board of Investment Office (BOI) eligible activities
- Exemption of corporate income tax for a period of 3 years, but altogether not exceeding 8 years.
- For projects in A1/A2, which are entitled to 8 years tax exemption, an additional 50% reduction for 5 years will be granted.
2.In case of targeted activities
- Exemption of corporate income tax for a period of 8 years (not exceeding 100% of investment excluding cost of land and working capital).
- Additional 50% reduction of corporate income tax in a period of 5 years.
3.For both activities
- Exemption of import duty on machinery.
- Exempt import duty of materials used in export manufacture.
- Permission to hire foreign unskill labor.
- 25% deduction of project installation/ construction costs from the project capital (in addition ot the deduction in depreciation)
- Double deduction from the cost of transportation, electricity, and water supply.
- Other non-tax incentives such as land ownership, bringing foreign skilled labor or experts.
4.Easing conditions for SMEs
- Minimum project investment of 500,000 baht (excluding the land cost and working capital).
- Allow to use the used machines, but not exceeding 10 million baht and must use new machines not less than 50% of total machines cost.
*These BOI’s incentives will be valid until December 30, 2020
Incentive from other organizations
1.The Revenue Department
- Reduction of corporate income tax from 20% to 10% in 10 of accounting periods.
- Extend submission application by December 30, 2020.
2.The Customs Department
- Reduction of registered capital for bonded warehouse from 10 million baht to 5 million baht.
- Free zone registered capital must value at least 10 million baht.
For more information please contact:
Office of the National Economic and Social Development Council Tel: 0-2280-4085
Office of the Permanent Secretary, Ministry of Industry Tel: 0-2202-3156