Thailand the “Medical Hub of Asia”
The BOI has set out a strategic policy to promote Thailand as the “Medical Hub of Asia”. The BOI supports the increased demand in the healthcare market, which may lead to greater opportunities in medical services, as well as the manufacture of pharmaceuticals and medical devices, that will contribute to Thailand being in a strong position to serve as the medical hub of Asia.
Keywords: Mazars, Thailand, Asia, Legal, BOI, Medical, SMEs, CIT
6 October 2016
After the BOI met at the end of August 2016, its Secretary-General, Ms. Hiranya Suchinai, stated that the BOI will promote the manufacture of pharmaceuticals and medical devices to strengthen competitiveness in these industries.
Currently, pharmaceutical manufacturers are not eligible for corporate income tax exemptions. However, as part of the new policy, the BOI will offer such entities a five-year corporate income tax exemption. If such entities apply for BOI privileges in 2017, they will receive a corporate income tax exemption for up to eight years.
Furthermore, the BOI will include the manufacture of medical devices in the list of activities promoted for SMEs, so that SMEs which engage in such projects will be entitled to an additional two-year corporate income tax exemption. This means that SMEs which manufacture medical devices will obtain a corporate income tax exemption for up to seven years.