IPO and the care of elderly and clinical research

Based on a decision by the Board of Investment (“BOI”) to boost investment in Thailand by reinstating the International Procurement Office (“IPO”) and launching new investment projects for the care of the elderly and clinical research business activities, the BOI issued Notification No. Sor. 1/2021 dated 13 January 2021 adding new business activities to business category 7 and prescribing the related conditions and incentives.

Keywords: Mazars, Thailand, Legal, BOI, IPO, CIT, CRO, CRC, Elderly and clinical research

23 March 2021

Details are as follows:

Business categories

Key incentives

7.28.5 Hospital for the elderly

A3 – Exemption from CIT for 5 years.

7.28.6 Nursing homes for the elderly and dependent people

A4 – Exemption from CIT for 3 years only for revenue derived from a service providing residence to and care for the elderly.

7.37 International Procurement Office (IPO)

B1 – No corporate income tax incentive

7.38 Clinical Research

7.38.1 Contract Research Organization (CRO)

A1 – Exemption from CIT for 8 years
without limitation only for revenue derived from management of clinical research.

7.38.2 Clinical Research Center (CRC)

A1 – Exemption from CIT for 8 years
without limitation only for revenue derived from undertaking the scope of clinical research approved by the BOI and after obtaining permission from the Ethics Committee (EC) or Institutional Animal Care and Use Committee (IACUC) before applying for CIT incentive.

(*) CIT = Corporate income tax

 

A company interested in applying for a BOI certificate under the reinstated IPO must meet the following criteria:

  1. Must procure raw materials, parts, and components used in the manufacturing process.
  2. Must own or rent a warehouse operated by a specific warehouse management system.
  3. Must conduct procurement activities under adequate management, i.e., quality control of products and packaging.
  4. Must procure products from various sources, but from at least one domestic source. 
  5. Must be a business wholesaling in Thailand and / or exporting.
  6. Must have registered capital of at least THB 10 million.
  7. Not eligible for merit-based incentives. 

Reference: BOI’s website

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