BOI incentives amended

The BOI recently updated two policies: producing animal fee and promoting Thailand as an aerospace cluster.

Keywords: Mazars, Thailand, Legal, BOI, Animal Feed, Aerospace Clusters

7 December 2016

Animal Feed

The BOI recently approved a policy to promote Thailand as a centre for the manufacture of animal feed or animal feed mixes. Such manufacturers which were previously ineligible for investment incentives since December 2014 are now eligible for them. This will encourage these manufacturers to make Thailand a base for research and development of the production of animal feed in the region.

Manufacture of animal feed or animal feed ingredients Incentives
In case the project have the production of animal feeds Group B1: only the non-tax incentives
In case the projects have the investment for Research Development and Innovation

- Corporate income tax exemption: The BOI stipulates additional incentives based on merits of the projects.

- Non-tax incentives

Aerospace Clusters

In addition, the BOI revoked the condition stating that aerospace clusters receiving BOI incentives must be located in one of the 14 provinces with an airport or near a shipping port. New large-scale and SME factories for aircraft parts no longer need to be located near an airport, but can provide parts to customers wherever they are located.

Manufacture or repair of aircraft, including aircraft parts and equipment or on board equipment Incentives
Airframe, airframe parts, major aircraft appliances, e.g. engine, aircraft parts, propeller, and avionics

Group A1

- 8-year corporate income tax exemption without being subject to a corporate income tax exemption cap

- Exemption of import duty on machinery

- Exemption of import duty on raw or essential materials used in manufacturing export products

- Non-tax incentives

Other aircraft parts, and on board devices and equipment (except Disposable and reusable aircraft utilities and supplies)

Group A3

- 5-year corporate income tax exemption, accounting for 100% of investment (excluding cost of land and working capital) unless specified in the list of activities eligible for investment promotion that the activity shall be granted corporate income tax exemption without being subject to a corporate income tax exemption cap

- Exemption of import duty on machinery

- Exemption of import duty on raw or essential materials used in manufacturing export products

- Non-tax incentives

Repair of aircraft, parts and equipment

Group A2

- 8-year corporate income tax exemption, accounting for 100% of investment (excluding cost of land and working capital)

- Exemption of import duty on machinery

- Exemption of import duty on raw or essential materials used in manufacturing export products

- Non-tax incentives

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