"TURN EXPERIENCE TO VICTORY"

BOI Zoning

BOI Zoning

Sep 30, 2013

BOI Zoning

As decentralization is a major theme in devising the BOI incentive scheme, the country is divided into three zones base on economic factors (with earnings and primary facilities as criteria of each province.)

Zone 1: Bangkok, Nakhon Pathom, Nonthaburi, Pathoum Thani, Samut Prakan and Samut Sakhon

Zone 2: Ang Thong, Ayuthaya, Chachiengsao, Chon Buri, Karnchanaburi, Nakorn Nayok, Ratchaburi, Samut Songkhram, Saraburi, Supanburi, Phuket and Rayong

Zone 3*: 36 Provinces; Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chaing Mai, Trang, Trat, Tak, Nakhon RAtchasima, Nakorn Si Thammarat, Nakhon Sawon, Prachuab Khiri Khan, Prachin Buri, Phangnga, Phattalug, Pichit, Phitsanulok, Phetchaburi, Phechabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Keaw, Sing Buri, Sukothai, Surat Thani, Uttaradit and Uthai Thani.

22 Provinces; Kalasin, Nakhon Phanom, Narathiwat, Nan, Buri Ram, Patani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakhon Nakhon, Satun, Nong Bua Lamhu, Chaiyaphum, Nong Khai, Ubon Ratchathani, Udon Thani and Amnatcharoen.

Note: *The remaining 58 provinces with low income and with less developed infrastructure which are designated as Investment Zone.

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Summary of Basic Tax incentives

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Type of investment

Section 1: Agriculture and Agricultural Products.
Section 2: Mining, Ceramics and Basis Metals.
Section 3: Light Industry.
Section 4: Metal Products, Machinery and Transport Equipment.
Section 5: Electronic Industry and Electrical Appliance.
Section 6: Chemicals, Paper and Plastics.
Section 7: Service and Public Utilities.

Investment Opportunities

1. Ethanol Industry in Thailand.
2. Mould Making Industry Project.
3. Aircraft Manufacturing and repair Industry in Thailand.
4. Electronic and Electrical Industries.
5. Chemical Industry in Thailand.
6. The role of BOI in promoting SMEs.
7. Logistics Thailand.

New Policies for 2010-2012
“Investment for Sustainable Development”
(Application submission deadline: December 31, 2012)

1. Special incentive for 3 groups of targeted activities (except Bangkok)
1.1 Manufacture of eco-friendly material and product, e.g. bio-plastics
1.2 Energy saving and alternative energy
1.3 High technology activities e.g. industrial electronics, electronic parts for vihicles, biotech, nano-tech, functional fiber etc.
Incentives:

• Exemption of import duties on machinery
• 8 year exemption of corporate income tax with no cap
• 5 year 50% reduction of corporate income tax on net profit
• 10 year double deduction of transportation, electricity and water supply costs
• Deduction from net profit 25% of investment in infrastructure installation and construction costs in addition to normal capital depreciation

2. Measure to promote energy conservation, alternative energy utilization or reduction of environmental impacts incentives
2.1 Import duty exemption on machinery
2.2 3 year corporate income tax exemption on the revenue of existing projects, accounting for 70% of the investment under this measure excluding cost of land and working capital

3. Measure to promote production efficiency improvement by technology upgrade for manufacturing of new products. Next