BOI Privileges by Location

   

 

Investment zones have long been used to support government goals in decentralizing Thailand's industrial base. In line with the government policy of decentralization from the Bangkok Metropolitan Area, the BOI announced new "Policies and Criteria for Investment Promotion" since April, 1993, creating three Investment Promotion Zones throughout Thailand.

 

 Click here to download Summary Table of BOI Privileges by Investment Promotion Zone

 

Investment Promotion Zones are divided, as follows:

 

Projects in Zone 1 shall be granted:

50 per cent reduction of import duty on machinery that is subject to import duty of not less than 10 per cent

Corporate income tax exemption for 3 years for projects located within industrial estates or promoted industrial zones, provided that such a project with capital investment of 10 million baht or more (excluding cost of land and workng capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year.

Exemption of import duty on raw or essential materials used in the manufacturing of export products for 1 year.

 

Projects in Zone 2 shall be granted:

50 per cent reduction of import duty on machinery that is subject to import duty of not less than 10 per cent

Corporate income tax exemption for 3 years, increased to 5 years for projects located within industrial estates or promoted industrial zones, provided that such a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year.

Exemption of import duty on raw or essential materials used in the manufacturing of export products for 1 year

 

Projects in Zone 3 shall be granted:

Exemption of import duty on machinery

Corporate income tax exemption for 8 years provided that a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up-date, otherwise the corporate income tax exemption will be reduced by 1 year

Exemption of import duty exemption on raw or essential materials used in the manufacturing of export products for 5 years

 

Projects located in one of the following 36 provinces of Zone 3: Chai Nat, Chanthaburi, Chiang Mai, Chiang Rai, Chumphon, Kamphaeng Phet, Khon Kaen, Krabi, Lamphang, Lamphun, Loei, Lop Buri, Mae Hong Son, Mukdahan, Nakhon Ratchasima, Nakhon Sawan, Nakhon Si Thammarat, Phangnga, Phattalung, Phetchabun, Phetchaburi, Phitsanulok, Pichit, Prachin Buri, Prachuab Khiri Khan, Ranong, Sa Kaew, Sing Buri, Songkhla, Sukhothai, Surat Thani, Tak, Trang, Trat, Uthai Thani, and Uttaradit, shall be granted Zone 3 tax and duty privileges and further privileges, as follows: ... see map of Thailand

(1) A project located within industrial estates or promoted industrial zones is entitled to the following privileges:

(1.1) 50 per cent reduction of corporate income tax for 5 years after the exemption period;

(1.2) Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity;

(2) For a project located outside industrial estates or promoted industrial zones, a deduction can be made from net profit of 25 per cent of the project's infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.

 

Projects located in one of the following 22 provinces: Amnat Charoen, Buri Ram,Chaiyaphum, Kalasin, Maha Sarakham, Nakhon Phanom, Nan, Narathiwat, Nong Bualamphu, Nong Khai, Pattani, Phayao, Phrae, Roi Et, Sakhon Nakhon, Sathun, Si Sa Ket, Surin, Udon Thani, Ubon Ratchathani, Yasothon, and Yala shall be granted Zone 3 tax and duty privileges and further privileges as follows:  ... see map of Thailand  

(1) 50 per cent reduction of corporate income tax for 5 years after the exemption period;

(2) Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activities;

(3) Deduction can be made from net profit of 25 per cent of the project's infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.

    

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