Policies for investment Promotion
To relieve the fiscal burden of the government and to respond to current and future economic situations, the Board of Investment (BOI) prescribes policies for investment promotion as follows:
1. The efficiency and effectiveness of tax privileges given will be enhanced. Privileges will be granted to projects that actually benefit the economy and good governance will be used to manager and supervise the application of tax and duty privileges. Promoted entities will report the operating results of their promoted projects to the BOI for review prior to the application of tax and duty privileges for that year.
2. To promote development of quality and production standards to enhance competitiveness in the world market, every promoted project that has an investment capital of 10 million baht or more (excluding cost of land and working capital) must obtain ISO 9000 certification or similar international certification.
3. Previous conditions on exports and use of local materials are repealed so that the criteria for promotion will be in line with international trade and investment agreements.
4. Special investment promotion will be given to regions or areas with low income and inadequate investment facilities. Maximum tax and duty privileges will be given to these regions or areas.
5. Priority is given to small and medium industries by applying a minimum level of investment capital of 500,000 baht (excluding cost of land and working capital) for activities as per the announcement of the BOI no. 1/2553 and of not less than on million baht (excluding cost of land and working capital) for other activities.
6. Priority is given to agricultural activities and agricultural products, projects related to technological and human resource development, public utilities, infrastructure and basic services, environmental protection and conservation and targeted industries.
Incentive
Tax incentives
• Exemption/reduction of import duties on machinery.(section 28/29)
• Reduction of import duties for raw or essential materials.(section 30)
• Exemption of juristic person’s income tax and dividends.(section 31 and 34)
• A 50 percent reduction of the juristic person’s income tax.(section 35(1))
• Double deductions from the costs of transportation, electricity and water supply.(section 35(2))
• Additional 25 percent deduction of the cost of installation or construction of facilities.(section 35(3))
• Exemption of import duty on raw or essential materials for use in production for export.(section 36)
Non-Tax incentives
• Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities.(section 24)
• Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.(section 25 and 26)
• Permit to own land.(section 27)
• Permit to take out or remit money abroad in foreign currency.(section 37) Next
