To support the government’s economic roadmap, the BOI provides incentives to strategic industries by giving a corporate income tax exemption for 8 years to 13 target industries in Special Economic Development Zones in certain border areas.
Keywords: Mazars, Thailand, Legal, Special Economic Development Zones, BOI, CIT
9 December 2015
The 5 border areas are: Tak; Sa Kaew; Trat; Mukdahan; and Songkhla. The 13 target industries are agriculture, fisheries, ceramics, garments and textiles, leather, furniture, fabrics, medical devices, automobiles and automotive parts, electronics, plastics, pharmaceuticals, and logistics.
Entities operating these sorts of businesses shall receive a further 50% reduction of corporate income tax for 5 years from the date on which the corporate income tax exemption ends. Therefore, the tax benefit given to investors in these businesses lasts for approximately 13 years.
Investors who conduct business do not conduct those 13 industries in the Special Economic Development Zones may receive a reduction in the corporate income tax rate from 20% to 10% for 10 accounting periods.
In addition, the Thai government will support these investors by giving them financial assistance of 10 to 20 million baht each through government financial institutions or the Thai government savings bank.