Thai Boi Announces New Policy

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Press Release Source: Thailand Board of Investments

Thai BOI Announces New Policy

BANGKOK (thaivisa.com) -- In order to facilitate the transition to a knowledge-base economy, the Thailand Board of Investment (BOI), announced that projects investing in skills, technology and innovation (STI) will be eligible to receive additional tax incentives to specific activities in three target industries.

1. Fashion Industry, the BOI will consider both upstream and downstream

textile projects to support the entire garment industry value chain,

as well as projects in leather and jewelry.

2. Automotive industry, the BOI will include the manufacture of machinery

and equipment, vehicle parts, electric-powered vehicles or parts, 4-

stroke motorcycle engines, automobile engines and multi-purpose

engines.

3. Information Communication Technology (ICT) industry, the BOI will

include the manufacture of electronic products, the manufacturing part

or supplies used for electronic apparatus, and the manufacture of

material for micro-processors.

The STI criteria that will be used for projects that have not yet received investment promotion approval include:

1. R&D or design expenditures of not less than 1-2 percent of annual

total sales in the first 3 years

2. Recruitment of not less than 1-5 percent of total workforce within the

first 3 years of S&T personnel with a minimum of a bachelor's degree

in science, engineering or other technology, R&D or design-related

fields

3. Training of staff of not less than 1 percent of payroll within the

first 3 years

4. Cost of developing vendors or costs of supporting related educational

institutes must be not less than 1 percent of annual total sales

within the first 3 years

Projects that meet each of these criteria will receive one additional year's corporate income tax holiday, which will not be subject to the cap on benefits, with the total available corporate income tax holiday not to exceed eight years. In addition, machinery imported for use in these projects will be exempt from import duty.

Under this policy, projects in seven activities that directly support the development of STI in the Kingdom will be treated as priority activities and will receive maximum incentives, regardless of location. Benefits for these projects will not be subject to the cap on incentives, and imports of machinery will be duty-free.

1. Manufacture of medical supplies or medical equipment

2. Manufacture of scientific instruments

3. Electronic design

4. Research and development (R&D)

5. Scientific laboratories

6. Calibration services

7. Human resources development (HRD)

8. Science park

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Source: Thailand Board of Investments