BOI measures to enhance investments in large-scale projects

The BOI recently announced special short-term measures to enhance investments in large-scale projects to boost the Thai economy. The main measure is the ability to claim an additional 50% reduction in corporate income tax for 5 years, with the key conditions being as follows.

Keywords: Mazars, Thailand, Legal, Economy, BOI, Corporate income tax

10 June 2020

  • All provinces are specified as investment promotion zones.
  • The business activities conducted must be in categories A1, A2, and A3, except for businesses that have no fixed place of business, such as air transportation services, maritime services, and businesses in categories 2.17, 6.15, 6.16, 6.17 and 7.24 established in special economic development zones.
  • The project must be submitted for BOI approval from 2 January 2019 to the last working day of December 2020.
  • The project must be entitled to a corporate income tax exemption for no more than eight years under all applicable investment promotion measures.
  • Investment in the project, excluding land and working capital, must be:
    • not less than THB 500 million from 6 February 2020 to 30 December 2020; or
    • not less than THB 1 billion from 6 February 2020 to 30 December 2021.
  • The investor must submit evidence of the actual amount of the investment by the last working day of June 2022.

The period for importing machinery is not extended, but the period of time needed to reach full operational capacity shall be extended, as appropriate.

Source: The Royal Gazette  

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