BOI rolls out measures for medical sector and related industries
The Board of Investment of Thailand (“BOI”) approved a series of measures to mitigate the impact of the COVID-19 outbreak on business, including steps to encourage rapid investment in the manufacturing of medical equipment, as set out below:
Keywords: Mazars, Thailand, Board of Investment, BOI, Tax, Medical Industry, Corporate Income Tax, Import Duty, Investment Incentives.
15 April 2020
New investments in the medical sector
- In addition to the existing tax privileges granted (3 to 8 years tax holiday), the BOI will grant 50% reduction on corporate income tax for 3 years after the tax holiday for the investments in the medical industry, including medical devices or parts, medical equipment supplies, non-woven fabric to produce face masks, personal protection equipment, diagnostic test kits, drugs, and active pharmaceutical ingredients.
- Companies must apply for investment incentives between 1 January and 30 June 2020.
- The company must commence business and start generating income by 31 December 2020.
- At least 50% of the products made in 2020-2021 by the business receiving incentives must be distributed and/or donated domestically.
Measures to support the adjustment of existing production lines to produce medical devices or parts
- Companies will receive an exemption from import duty for machinery imported to adjust the production lines of medical devices or parts.
- Companies must file applications to amend the promoted project by September 2020 and must import the machinery within year 2020.
Adjustment of privileges for producing raw materials used in manufacturing medical products
- The production of pharmaceutical-grade alcohol is now entitled to an exemption from corporate income tax for 8 years.
- The exemption from corporate income tax will be extended from 3 years to 5 years for the production of non-woven fabric used as raw materials to produce surgical masks or medical devices.
The BOI will make an official announcement about this later.
Source: BOI press release no. 43/2563 dated 13 April 2020