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Thailand Board of Investment Incentive Policies for 2015 to 2021

The Thailand Board of Investment (BOI) has set its policy for incentives for 2015 to 2021. Thailand's main incentives are granted by the BOI under the Investment Promotion Act on a case-by-case basis. The incentives are granted for projects involving certain industries and products deemed important for Thailand's development.

Beginning 2015 a category system is introduced where the investment is categorized as either Group A (A1-A4) or Group B (B1and B2). The classifications are based on industry/sector type and to what degree the investment encourage the country’s competitiveness and development, adds value to domestic resources, strengthens supply chain, etc.

The basic incentives provided based on group are as follows.

Group A incentives include:

  • Corporate Tax exemption:
    • A1 - 8 year exemption with no cap
    • A2 - 8 year exemption capped at 100% of the investment
    • A3 - 5 year exemption capped at 100% of the investment (no cap for certain activities)
    • A4 - 3 year exemption capped at 100% of the investment
  • Machinery import duty exemption
  • Raw and essential materials import duty exemption for manufacturing of exported products for 1 year (may be extended)
  • Other non-tax incentives

Group B incentive include:

  • Machinery import duty exemption (B1 only)
  • Raw and essential materials import duty exemption for manufacturing of exported products for 1 year (may be extended)
  • Other non-tax incentives

Merit-based incentives

Additional incentives are granted for three main area, including competitive enhancement, decentralization, and industrial area development.

Competitiveness enhancement incentives are provided for investment in R&D, advanced technology training, product and packaging design, and others. The incentives include an additional 1 to 3 years tax exemption depending on investment amount (capped at total 8 years), and the exemption cap may be increased to up to 200% of the investment.

Decentralization incentives are provided for investment in investment promotion zones. The incentives include an additional 3 years tax exemption (capped at total 8 years). For groups A1 and A2, the incentive is instead a 50% tax reduction for 5 years following the standard 8 year exemption. Other incentives include a 10 year double deduction for transportation, electricity and water costs, and a 25% deduction of infrastructure installation or construction costs in addition to depreciation.

Industrial area development incentives include an additional year of tax exemption (capped at total 8 years).

Click the following link for a chart provided by the BOI covering the investment types for each group.

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