BOI announces special investment acceleration measures for 2021.
In a bid to accelerate investments in large-scale high-tech projects, Thailand’s Board of Investment (BOI) introduced a series of measures for the qualified businesses in target industries, granting them further benefits.
According to the BOI’s Secretary General Duangjai Asawachintachit, the measures were specifically designed to boost investment in the post-COVID-19 period and aid in adopting digital technologies within businesses. This would help them get ready to seize business opportunities arising from the upcoming economic recovery.
Special measures for large-scale investment projects
- Proposed projects must be activities eligible for corporate income tax (CIT) exemption of 5 to 8 years (group A1, A2 and A3)
- Proposed projects must realise the investment of not less than 1 billion baht (USD33 million) within 12 months from the issuance of the investment promotion certificate
- Qualified projects must submit applications from January 4, 2021 to the last working day of 2021
- An additional 50% corporate income tax (CIT) reduction for five years on top of the standard CIT exemption
No extension is permitted to the deadline for the acceptance of investment promotion and issuance of investment promotion certificate.
Additional benefits for other tech industries and businesses in Special Economic Zones (SEZs)
Not only new investments get to enjoy the benefits. Existing businesses in select industries, such as software integration, artificial intelligence (A1), machine learning, or big data analytics, applying for investment under digital technology adoption program in systems and activities will be granted a 50% CIT exemption for three years, if approved. The qualified businesses have until the end of 2022 to apply.
Next, BOI approved the extension of the application period (to the end of 2022) for the special incentive scheme for SEZs. This program has been in place for the past several years and is designed to promote investments in Thailand’s ten SEZs, all located in border areas.
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-year 50% reduction. This application submission deadline extension will help to support continued investment in these areas.
If you have any questions regarding the special measures or are interested in applying the BOI promotion for your business, get in touch with our team. We are happy to help.