Tax Relief Measures for BOI Companies Announced

The Board of Investment (‘BOI’) has announced tax relief measures for factories affected by the floods whose investment privileges have not yet expired.

Keywords: Tax Reliefs, BOI, Flood, Thailand, Machinery, Factory

A BOI promoted company with machinery and/or a factory building damaged by floods is eligible for the following tax incentives:

Type A – If Tax Holiday Capped at 100% of the Investment Amount

Privileges of existing project Privileges for the new investment
Tax incentives Amount of tax to be exempted Tax incentives
3-8 years tax holiday 150% if investment located in the same province 8 years tax holiday
100% if relocates to another province 8 years tax holiday

Type B – If Tax Holiday not Capped

                  Privileges for the new investment
Additional Tax holiday Additional 50% reduction on corporate income tax after the tax holiday
Additional 3 years tax holiday, but not more than 8 years in total Remaining tax holiday          is  5 - 6 years 2 years
Remaining tax holiday     is  6 – 7 years 4 years
Remaining tax holiday          is  7 - 8 years 5 years

The promoted companies entitled to the privileges under Type B can also receive the privileges under Type A, although not both incentive packages.

In addition to the above, any industrial estate investing in flood-prevention systems are eligible for an eight-year tax holiday capped at no more than 200% of the investment.