The Board of Investment (BOI) approved new incentives to boost investments in the medical sectors through BOI Announcement No. 7/2563 dated 14 May 2020.
Keywords: Mazars, Thailand, Legal, BOI, Medical sector
27 August 2020
Key measures of the new incentives cover the following:
1. Incentives for businesses producing raw materials for medical equipment
- The scope of business category 1.16.1, ‘Manufacture of fuel from agricultural products’, is extended to cover the manufacture of alcohol from agricultural products for pharmaceutical purposes. As a result, a business manufacturing such alcohol shall be exempt from corporate income tax for 8 years.
- Greater tax benefits are granted to a business manufacturing fabric used as raw materials in the production of medical masks and devices under business category 3.2.1, by offering an exemption from corporate income tax for 5 years.
2. Encouragement to adjust existing production lines
The BOI offers an exemption from import duty on machinery to businesses receiving BOI incentives that wish to adjust their existing production lines to cover the manufacture of medical devices and parts, on the following conditions:
- The business must file an application with the BOI by September 2020 to adjust its existing production lines to cover the manufacture of medical devices and parts; and
- The machinery to be used in the manufacture of medical devices and parts must be imported in 2020.
The new BOI incentives became effective 13 April 2020.
Reference: Board of Investment