New BOI-related merit-based incentives related to R&D

Based on resolutions passed by the Board of Investment (BOI) on 30 June 2021, the BOI will offer an additional unlimited tax holiday for up to 5 years for projects investing in research and development.

Keywords: Mazars, Thailand, Legal, BOI, R&D, SMEs, Tax holiday

10 September 2021

The key criteria and incentives are as follows:

 

 

 

 

 

Minimum investment and expenses for R&D only

Additional tax

holiday

General

SMEs

At least 1% of total sales over the first three years, or at least THB 200 million

At least 0.5% of total sales over the first three years

1 year

At least 2% of total sales over the first three years, or at least THB 400

At least 1% of total sales over the first three years

2 years

At least 3% of total sales over the first three years, or at least THB 600 million

At least 1.5% of total sales over the first three years

3 years

New

 

At least 4% of total sales over the first three years, or at least THB 800 million

At least 2% of total sales over the first three years

4 years

New

At least 5% of total sales over the first three years, or at least THB 1 billion

At least 2.5% of total sales over the first three years

5 years

Notes:

  • The total tax holiday cannot exceed 13 years.
  • Where R&D is one of the activities of the project, the entrepreneur must invest more than the minimum amounts listed to receive the additional incentives mentioned above.

If the amount of the investment and expenses for a project does not meet the minimum amounts set out above, the project will still be entitled to a corporate income tax holiday in proportion to the amount of the investment and expenses.

Reference: Board of Investment

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