Today, we talk about the BOI conditions, rights and benefits for the promotion of manufacturing textile products or parts in Thailand.
Under Section 3 of the Permitted Activities of the Board of Investment, activities in the category of manufacture of textile products or parts are sub-categorized as follows:
- Manufacture of natural or synthetic fibers
- Yarn spinning
- Manufacture of fabrics
- Bleaching, dyeing and finishing
- Printing and finishing
- Manufacture of garments
- Manufacture of parts or accessories for garments
- Manufacture of household textiles
- Manufacture of carpets
- Manufacture of trawling nets
BOI Conditions:
- Bleaching, dyeing and finishing project must be:
1.1 Located in an industrial estate specified by the Industrial Estate Authority of Thailand (IEAT) or promoted industrial zones which have waste elimination systems and environmental conservation according to legal standards
1.2 Only the promoted companies that plan to expand the project in the existing location must obtain ISO 14000 certification within 2 years from the start-up date.
BOI Rights and benefits:
- Shall be according to the Board of Investment Announcement No. 1/2543 dated August 1, 2000
- Projects located in industrial estates for integrated production of the textile (except Bleaching, dyeing and finishing) shall be granted:
2.1 Exemption of import duty on machinery, regardless of zone
2.2 Exemption of corporate income tax for:
- 5 years if located in Zone 1
- 7 years if located in Zone 2
- 8 years if located in Zone 3
2.3 Other rights and benefits shall be granted according to the BOI Announcement No. 1/2543 dated August 1, 2000
3. Only the manufacture of functional fiber and functional yarn shall be classified as a priority activity.
4. Bleaching, dyeing and finishing projects that are located in an industrial estate specified by the Industrial Estate Authority of Thailand and industrial estates for integrated production of the textile shall be granted:
4.1 Exemption of import duty on machinery
4.2 Eight-year corporate income tax exemption
4.3 Other rights and benefits shall be granted according to the BOI Announcement No. 1/2543 dated August 1, 2000.
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