IPO and the care of elderly and clinical research
Based on a decision by the Board of Investment (“BOI”) to boost investment in Thailand by reinstating the International Procurement Office (“IPO”) and launching new investment projects for the care of the elderly and clinical research business activities, the BOI issued Notification No. Sor. 1/2021 dated 13 January 2021 adding new business activities to business category 7 and prescribing the related conditions and incentives.
Keywords: Mazars, Thailand, Legal, BOI, IPO, CIT, CRO, CRC, Elderly and clinical research
23 March 2021
Details are as follows:
Business categories | Key incentives |
7.28.5 Hospital for the elderly | A3 – Exemption from CIT for 5 years. |
7.28.6 Nursing homes for the elderly and dependent people | A4 – Exemption from CIT for 3 years only for revenue derived from a service providing residence to and care for the elderly. |
7.37 International Procurement Office (IPO) | B1 – No corporate income tax incentive |
7.38 Clinical Research | |
7.38.1 Contract Research Organization (CRO) | A1 – Exemption from CIT for 8 years |
7.38.2 Clinical Research Center (CRC) | A1 – Exemption from CIT for 8 years |
(*) CIT = Corporate income tax |
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A company interested in applying for a BOI certificate under the reinstated IPO must meet the following criteria:
- Must procure raw materials, parts, and components used in the manufacturing process.
- Must own or rent a warehouse operated by a specific warehouse management system.
- Must conduct procurement activities under adequate management, i.e., quality control of products and packaging.
- Must procure products from various sources, but from at least one domestic source.
- Must be a business wholesaling in Thailand and / or exporting.
- Must have registered capital of at least THB 10 million.
- Not eligible for merit-based incentives.
Reference: BOI’s website
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