The Thailand Board of Investment (BOI) on 21 December 2020 approved a package of measures to accelerate investments, particularly in target industries, and to encourage businesses to adopt digital technologies.
BOI Secretary General Duangjai Asawachintachit said that the package to promote large projects was designed to boost investment in the post-COVID-19 period. The adoption of digital technologies would promote increased efficiency and productivity and ensure that companies are ready to seize business opportunities arising from the upcoming economic recovery.
Under the measures to accelerate investments in target industries, projects with realized investments of at least one billion baht (USD33 million) within 12 months from the promotion certificate issuance will be eligible for an additional 50 percent corporate income tax (CIT) deduction for a period of five years, on top of the standard 5-8 years CIT exemption. Qualified projects may submit applications from 4 January 2021 to the last working day of 2021.
Existing businesses of all sizes applying for investment under the digital technology adoption program in systems and activities, such as software integration, artificial intelligence (AI), machine learning, or big data analytics, by the end of 2022, will, if approved, be granted a 50 percent corporate income tax exemption for three years on their existing businesses.
To further promote investments in Thailand’s ten Special Economic Zones (SEZ), all located in border areas, Ms. Duangjai said that BOI approved the extension of the application period, to the end of 2022, for the special incentive scheme for SEZs that has been implemented over the past several years.
BOI also approved an extension by two years of the application period for projects in dedicated districts of the country’s five southernmost provinces to the end of 2022. These areas have been granted a special tax incentive package, such as an eight-year tax holiday, followed by another five years of 50 percent reduction. This application submission deadline extension will help to support continued investment in these areas.
BOI also granted the Genomics Thailand project located at Burapha University in the Eastern Economic Corridor (EEC) a status similar to EECi, EECd, EECa and EECmd, which are dedicated to specific targeted industries. Investments in these areas will be entitled to additional tax incentives from BOI.
Source: The Government Public Relations Department