Thailand BOI grants certain privileges to the promoted companies in each investment promotion zones. We summarize below the tax incentives granted to Zone 3 specifically for those projects located in industrial estates or promoted industrial zones in 36 provinces: Chai Nat, Chantaburi, Chiang Mai, Chiang Rai, Chumphon, Kamphaeng Phet, Khon Kaen, Krabi, Lamphang, Lamphun, Loei, Lop Buri, Mae Hong Son, Mukdahan, Nakhon Ratchasima, Nakhon Sawan, Nakhon Si Thammarat, Phannga, Phattalung, Phetchabun, Phetchaburi, Phitsanulok, Pichit, Prachin Buri, Prachuab Khiri Khan, Ranong, Sa Kaew, Singburi, Songkhla, Sukhotai, Surat Thani, Tak, Trang, Trat, Uthai Thani and Uttaradit as well as those projects situated in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong province.
For those located inside industrial estate or promoted industrial zones including Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong province, the following tax incentives will be granted:
– Exemption of import duties on machinery
– Corporate income tax exemption for 8 years
– 50% reduction of corporate income tax exemption for 5 years after the exemption period
– Exemption of import duties on raw or essential materials used in manufacturing of export products
– Double deduction of transportation, electricity and water costs for 10 years
– 25% deduction of the project infrastructure installation construction costs from net profit
– 75% reduction of import duties on raw or essential materials used in manufacturing products for domestic sale for 5 years with yearly approval excluding Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province.
NOTE: In order to be eligible for the above mentioned tax incentives, application for promotion must be submitted by 31 December 2014.
For those projects situated outside industrial estates or promoted industrial zones, the following incentives will be given:
– Exemption of import duties on machinery
– Corporate income tax exemption for 8 years
– Exemption of import duties on raw or essential materials used in manufacturing of export products
– 25% deduction of the project infrastructure installation construction costs from net profit
The tax incentives for projects in Zone 3 specifically in 22 provinces are summarized in the next article.
Contact ThaiLawyers for Thailand BOI promotion application and Thai company registration.