On 21 December 2020, the Thai Board of Investment (BOI) approved measures to boost investment in target industries and accelerate the adoption of digital technologies.
Projects in target industries will be eligible for an additional 50% corporate income tax exemption for a period of 5 years, on top of the BOI’s standard 5-8 year corporate income tax exemption. To qualify, the project must have an investment of at least 1 billion Baht within 12 months from receiving the BOI promotion certificate. Projects may apply for the additional tax incentive between 4 January 2021 and 30 December 2021.
Digital technology adoption
Existing projects that promote the adoption of digital technology, such as software integration, artificial intelligence (AI), machine learning, or big data analytics, may be eligible for a 50% corporate income tax exemption for an additional 3 years. Qualifying projects may apply for the tax incentive until the end of 2022.
Deadline extension for Special Economic Zones (SEZ)
The BOI has extended the application period for incentives granted to projects located in the ten SEZs in the border areas of Thailand (in the provinces of Tak, Sa Kaeo, Trat, Mukdahan, Songkhla, Chiang Rai, Nong Khai, Nakorn Phanom, Kanchanaburi, and Narathiwat). Applications for the SEZ incentive scheme may be submitted until the end of 2022.
Deadline extension for five southern provinces
The application period for incentives granted to projects in five southern provinces (Pattani, Narathiwat, Satun, Songkhla, and Yala) has been extended until the end of 2022. Projects in these areas may enjoy an 8-year corporate income tax exemption, followed by another 5 years of 50% reductions.
Genomics project granted economic zone status
The Genomics Thailand project at Burapha University in the Eastern Economic Corridor (EEC) has been granted equal status to other economic zones in the EEC, namely the EECi, EECd, EECa and EECmd. Subsequently, the project will be eligible for the same incentive package as other EEC investments, such as corporate income tax exemptions for up to thirteen years.