The Board of Investment (BOI), during its meeting on 25 November 2014,
chaired by Prime Minister Prayut Chan-o-cha, has approved Thailand’s
new investment promotion strategy, to be implemented from 2015 to 2021.
In the vision of the new strategy, worthy Thai investments both in Thailand and
abroad will be promoted in order to enhance the country’s competitiveness and
move Thailand forward from a middle-income country to a higher-income economy,
with sustainable growth in the long run.
The new investment promotion strategy attaches great importance
to high technology and creative and digital economy activities, as well as the
industries that are developed from domestic natural resources. Incentives that
are based on location will be revoked, except those offered to 20 provinces
where per capita income is low. Investment projects in industrial estates will
receive additional incentives, apart from basic promotional privileges given in
accordance with the types of industries.
The meeting agreed that certain industries that are still important to the
production chain and have good potential for further growth should continue to
receive promotion. However, promotional privileges offered to them should be
adjusted in order to encourage them to invest more and upgrade their
production.
Under the new strategy, there are two groups of activities that are eligible
for promotion. Group A involves activities deemed to be of high importance to
economic restructuring. It is necessary to grant corporate income tax
exemption to these activities in order to stimulate the investment and enable
them to be competitive. Group B includes supporting industries that are still
important to the production chain.
Corporate income tax exemption will not be granted to these industries,
but they still benefit from other non-tax incentives.
The new seven-year investment promotion strategy will be effective on 1 January
2015 onwards.
The BOI meeting also approved measures to increase the capacity of SME
entrepreneurs, so that they would be able to go international. A total of 38
activities will be selected for promotion under the new investment promotion
strategy and measures to promote SMEs, which will be effective from 2015 to
2017.
They will be granted corporate income tax exemption two years longer than the
normal criteria. This will give them an advantage, so that Thai SME operators
will be able to compete more effectively. The incentives will also stimulate
investment among the SME group.
The BOI meeting also approved investment policy to be implemented in the five
special economic zones, namely Tak, Trat, Sa Kaeo, Songkhla, and Mukdahan. The
special economic zones will receive corporate income tax exemption for three
years more than the normal criteria.
(thailand.prd.go.th)