Cabinet Approves Investment Incentives For The Special Development Zone In The South

[Jai Dee]

Cabinet approves investment incentives for the special development zone in the South

The Cabinet yesterday approved the measures to reduce personal income and corporate income taxes for the five southernmost provinces to stimulate economy and investment in the region.

The measures will become effective from January 1st, 2007 to December 31st, 2009. During the three-year period, corporate income tax will be reduced to three percent, from 30 percent previously, while personal income earned from businesses indicated in Article 40(7)(8) is not required to be calculated in the annual tax payment.

As for the property sector, business tax will be reduced from three percent currently to 0.1 percent for property sale, while tax on the transfer and mortgage registration fee will be cut to 0.01 percent.

The Ministry of Commerce will also reduce other trading fees by half, such as registration fee and document inspection and copying fees. The government will also help businesses pay the insurance against terrorism on the part that is in excess of 0.5 percent.

In terms of low-interest credits, the government decided to expand the enforcement areas to cover Satun and four districts of Songkhla, apart from the three southernmost provinces.

The Ministry of Labour will also give special leniency to alien workers in all aspects in order to attract more workers in the region. This follows a complaint by the business sector about labour shortage which causes their inability to meet the supply order.

Source: Thai National News Bureau Public Relations Department - 20 December 2006