Revised investment incentives in EEC

By virtue of the Investment Promotion Act, the Board of Investment (“BOI”) issued BOI Announcement No. 2/2020 on 15 January 2020, revising the investment incentives to be offered to private investors who conduct business in the EEC area, which covers three provinces: Chachoengsao, Chonburi, and Rayong.

Keywords: Mazars, Thailand, Legal, EEC, BOI, R&D, Corporate Income Tax, Tax Holiday, Tax Incentives, Investment Promotion Act

2 March 2020

Activities eligible for additional tax incentives cover the following 5 categories:

1. Knowledge-based activities focusing on R&D and design to enhance the country’s competitiveness (“A1”);

2. Infrastructure activities for the country’s development, and activities using advanced technology to create added value, with no or very few such investments in Thailand (“A2”);

3. High-technology activities which are important to the development of the country, with a few such investments already existing in Thailand (“A3”);

4. Activities supporting the development of targeted technology and innovation, such as biotechnology, nanotechnology, advanced material technology, and digital technology (“Section 8”); and

5. Activities supporting the development of targeted technology and meeting the conditions for cooperation set out by the BOI (“Activities combining with Section 8”), including:

  • Business category 5.6 – The manufacture of electrical products
  • Business category 7.11 – Research and development
  • Business category 7.13 – Engineering design
  • Business category 7.14 – Scientific laboratories
  • Business category 7.15 – Calibration services
  • Business category 7.19.1 – Vocational training centres

The additional tax incentives to be offered to investors under this announcement will be determined based on the human resource development programme provided in the investor’s project and the zone in which the investor’s project is located. The details are summarized below:

1. Human resource development programme related to science and technology – The investor must cooperate with educational institutions or others in a manner approved by the BOI. For instance, in the areas of talent mobility, work-integrated learning, and dual vocational training.

2. Location of the BOI project – The investor’s project must be located in Chachoengsao, Chonburi, or Rayong Provinces, and in any of the following designated zones:

A. Investment incentive zones for special activities (“Zone A”)

1. Eastern Airport City (“EECa”)

2. The Eastern Economic Corridor of Innovation (“EECi”)

3. Digital Park Thailand (“EECd”)

4. The Medical Hub of Thammasat University in Pattaya (“EECmd”)

B. BOI-promoted industrial estates or Industrial zones (“Zone B”)

The tax incentives offered to qualifying investors in the EEC area are summarized in the table below:

Targeted industries

tax incentives

Additional tax incentives

Human resource development programme

Location of BOI project

Zone A

Zone B

A1, A2

8-year CIT exemption

+ 50% reduction in CIT for 3 years

+ 50% reduction in CIT for 2 years



5-year CIT exemption

+ 50% reduction in CIT for 3 years

+ 50% reduction in CIT for 2 years

+ 1-year CIT exemption

Section 8 and Activities combining with Section 8

10-year CIT exemption

+ 2-year CIT exemption

+ 1-year CIT exemption

+ 1-year CIT exemption

*“CIT” = corporate income tax

Please note that applications to receive these rights and incentives must be submitted to the BOI from 2 January 2020 to the last working day of the BOI in 2021, except applications for incentives under the Zone A criteria, which can be submitted to the BOI, and for which there is no deadline.