Use of Old Machines for BOI Projects Amended
The new BOI scheme under the Announcement of the Board of Investment No. 2/2557, 3 December 2014 states that for an approved project, new machinery and the following imported used machinery is allowed.
Keywords: Mazars, Thailand, Legal, BOI, Used Machinery, Corporate Income Tax Exemption
25 June 2015
(a) Any used machinery no more than 5 years old.
(b) Used press machines which are more than 5 years old but not more than 10 years old.
(c) Used machinery over 10 years old only for sea and air transport activities and molds and dies.
The used machinery will be included in the investment capital for the calculation of the cap on corporate income tax exemption.
An Announcement of the Board of Investment No. 6/2558 on 23 April 2015 applied retroactively from 2 April 2015 amends Announcement No. 2/2557:
(i) Any used machines more than 5 years old but not exceeding 10 years old are allowed to be used in the project BUT will not be counted as investment capital for the calculation of the corporate income tax exemption.
(ii) The sea and air transport activities and mold and dies are no longer allowable used machinery.
In addition, Announcement No. 6/2558 includes the use of imported used machinery in case of factory relocation as follows:
Machinery age | Allowed to use in project? | Allowed to count as investment capital for CIT exemption calculation? | Entitled to import duty exemption? | Required to submit machinery performance certificate? |
Less than 5 years | Yes | Yes CIT exemption cap equal to investment amount | No | Yes |
Over 5 years but no more than 10 years | Yes | Yes CIT exemption not more than 50% of machinery value | No | Yes |
Over 10 years | Yes | No | No | Yes |
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