Amends the Investment Promotion Act

Effective from 25 January 2017, Thailand introduced its new Investment Promotion Act to provide more incentives to high-tech industries. Major changes from this amendment are as follows:

(1) An exemption of import duty will be granted on materials imported for domestic R&D activities and related testing. Previously, it was granted only for materials used for manufacture for re-exportation. (2) The Board of Investment (BOI) may now grant corporate income tax (CIT) exemptions of up to 13 years for certain R&D and advanced technology and innovation activities. Previously, the maximum period of CIT exemption for various activities was limited to 8 years. (3) The BOI can allow CIT reduction instead of CIT exemption. This will benefit some businesses that may otherwise not qualify for the exemption.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific

• Sources:

  • Baker McKenzie, More Incentives Under New Investment Laws, http://www.bakermckenzie.com/en/insight/publications/2017/05/more-incentives-under-new-investment-laws/, 08 May 2017
  • Bangkok Post, The New BOI Act promotes technology and offers additional incentives, http://www.bangkokpost.com/business/news/1216477/the-new-boi-act-promotes-technology-and-offers-additional-incentives, 31 Mar 2017
  • KPMG, Thailand: Tax incentives for investment activities, https://home.kpmg.com/xx/en/home/insights/2017/02/tnf-thailand-tax-incentives-for-investment-activities.html, 09 Feb 2017