Asia Society Policy Institute

TAX INCENTIVES

• On December 20, 2021, the Board of Investment (BOI) approved a one-year extension of investment benefits provided in its Eastern Economic Corridor (EEC) incentive package. The EEC is a development initiative along Thailand’s eastern seaboard, focused on building industrial capacity in 12 targeted industries including cars, electronics, biotechnology, and aviation. Investors in the EEC are eligible to receive a five to eight-year corporate income tax exemption.

• On January 13, 2021, the Bio-Circular-Green (BCG) Economy Committee, chaired by Prime Minister General Prayut Chan-o-cha, approved the 2021–2026 BCG Strategic Plan as part of Thailand’s national agenda. The plan aims to promote sustainability and boost the competitiveness of four sectors – food and agriculture; medical wellness; bioenergy, biomaterial and biochemical; and tourism. Incentives include corporate tax exemptions for up to 13 years for companies, depending on the industry.

• On April 1, 2020, the Board of Investment announced that it had approved Measures to Facilitate Investors Affected by COVID-19 Situation. This includes measures to "postpone corporate income tax submission for the 2019 accounting year" and the launching of an "online document submission service."

• On February 6, 2020, in a follow-up to September 2019's Thailand Plus stimulus package, the Board of Investment approved a range of measures to boost investment. These include an additional 50 percent corporate income tax deduction for select companies for a duration of five years and an "extension and improvement of the promotion measures allowing companies to enjoy tax benefits when they invest in projects supporting the grassroots economy."

ADMINISTRATIVE BARRIERS

• In December 2021, the Thai Revenue Department published a notification that amends the filing deadline for country-by-country taxation reports by companies headquartered or operating in Thailand. All multinational companies must provide key information on their activities within each tax jurisdiction with which they do business. Businesses will now have 12 months instead of 150 days to file their reports, which adheres to standard OECD guidance.

SPECIAL ECONOMIC ZONES

• On May 6, 2022, the Thai Special Economic Zone Policy Committee approved four new special economic corridors, modeled after the Eastern Economic Corridor (EEC). The new corridors are the Northern Economic Corridor, Northeastern Economic Corridor (NEEC), Central-Western Economic Corridor (CWEC), and the Southern Economic Corridor (SEC). Each corridor will be accompanied by a variety of non-tax and tax incentives, one-stop services, and supporting infrastructure designed to attract investors.   

OTHER

• On July 20, 2020, the Board of Investment (BOI) announced the launch of an international promotional campaign, titled “Think Resilience, Think Thailand," to "showcase the country’s tested strengths and reinforce its status as the region’s prime investment destination." According to BOI Secretary General Duangjai Asawachintachit, “The new campaign captures four core competencies that are engrained in Thailand’s strategic positioning as ASEAN’s investment hub and gateway to Asia: Diversity, Ecosystem, Location and Supply Chain."

   

TAX INCENTIVES

• On October 11, 2021, the Thailand Board of Investment (BOI) approved tax-incentives meant to stimulate growth in Industry 4.0 sectors including machine learning and automation. These incentives will be implemented from October 2021 to December 2025. Incentives include a “3-year corporate income tax exemption” covering 100 percent of investments meant to speed up advancement in Industry 4.0 industries. Businesses will need to submit an application for this scheme by December 2022. 

• On June 30, 2021, the Board of Investment announced a series of measures to encourage development in research and development (R&D) for the semiconductor and digital sectors. Companies that “invest or spend at least 200 million baht [US$6.1 million] or 1 percent of their total sales of the first 3 years” in relevant projects will be granted tax breaks for up to 13 years without corporate income tax exemption ceilings. Additionally, “companies that participate in apprenticeship programs or spend on advanced technology training can also enjoy greater tax incentives.”

• On December 21, 2020, the Board of Investment (BOI) announced that it had approved "a series of measures to accelerate investments, particularly in target industries and to encourage business to adopt digital technologies." Most importantly, the BOI will reduce the corporate income tax for select investors and activities.

• On January 8, 2020, the Board of Investment announced that it will introduce "incentives to Enhance Human Resource Development and Support Educational Institutions” to support the "digital hub of Southeast Asia." Measures include tax incentives to companies engaged in human resource development, as well as corporate income tax exemptions for companies investing in the establishment of education and vocational training institutes specializing in science, technology, engineering, and mathematics.

LABOR REFORM

• On January 8, 2020, the Board of Investment announced a set of labor-related measures to "enhance human resource development,"  "support educational institutions," and ultimately bolster Thailand's position as the "digital hub of Southeast Asia." This includes the introduction of "SMART visas” to enable foreign investors and their families –– as well as other workers in the business, science and education sectors –– to reside in the country for up to four years without a work permit.

ADMINISTRATIVE BARRIERS

• On January 8, 2020, the Board of Investment (BOI) announced a set of measures to "enhance human resource development,"  "support educational institutions," and ultimately bolster Thailand's position as the "digital hub of Southeast Asia." The BOI will merge four government departments into a new Ministry of Higher Education, Science, Research and Innovations, which will “work closely with the private sector in Thailand and overseas to increase research and human resource development."

SPECIAL ECONOMIC ZONES

• On December 21, 2020, the Board of Investment announced that it had approved "a series of measures to accelerate investments, particularly in target industries and to encourage business to adopt digital technologies."  Measures include a two-year extension "of the application period for projects in dedicated districts of the country’s five southernmost provinces to the end of 2022," all of which have been granted various special tax incentive packages.

TAX INCENTIVES

• On November 4, 2020, the Board of Investment (BOI) announced that it had approved a set of incentives covering the medical supply chain "to boost Thailand’s competitiveness in health care and to strengthen the country’s medical hub status." According to the BOI, the incentives "promote clinical research, covering both Contract Research Organization (CRO) and Clinical Research Center (CRC) operations, with 8 years corporate income tax exemptions."

• On April 13, 2020, the Board of Investment (BOI) announced that it approved incentives to promote R&D around medical devices and supplies. According to the BOI, support will be given “to the modification or transformation of existing production lines to increase the domestic availability of medical supplies." Measures include "a reduction of 50 percent of corporate income tax for an additional 3 years to qualified investments in the medical sector" and "adjustments to the benefits granted for the production of raw materials used in the manufacture of medical products to encourage a more complete value chain in Thailand."

• On December 20, 2021, the Board of Investment (BOI) approved the creation of an investment promotion zone in the Yothi Medical Innovation District, located in downtown Bangkok. The new measure will grant investors an additional five years of 50 percent reductions in corporate income tax. Investors who collaborate with existing medical service providers and researchers in the district will be qualified for these tax benefits.

TAX INCENTIVES

• On February 3, 2022, the Thailand Board of Investment (BOI) announced that “Digital Trading Platforms for Agricultural Products” and “Agri-Food Industrial Estates/Parks” will be eligible for five years of preferential tax treatment under the Bio-Circular-Green (BCG) Economic Model strategic plan. Thailand introduced the BCG plan in 2019 to drive a sustainable, equitable, and resilient economy through investment and development.

TAX INCENTIVES

•  On April 7, 2022, the Thailand Board of Investment (BOI) approved revised incentives for investment in the electric vehicles sector. Changes include adding a five-year corporate income tax exemption available to investments in charging stations with at least 40 chargers. The revised measures now allow smaller charging stations to be eligible for three-year tax benefits. These incentives and other measures aim to boost the development of the electric vehicle market in Thailand by attracting domestic and foreign investment.

• On September 16, 2021, the Thailand Board of Investment (BOI) agreed to implement improvements to a production promotion policy for electric vehicles previously announced on November 4, 2020, which "approved the roll out of a comprehensive set of incentives" covering the entire electric vehicle supply chain. Measures include tax exemptions for qualified activities and entities, expansion of the scope of products and activities covered under existing exemptions, and a new three-year tax incentive for electric bicycle manufacturers.