Tax Incentive Scheme Announced by the BOI

The Board of Investment (‘BOI’) has announced an additional tax incentive scheme for new investment projects in the flood affected areas. This is expected to encourage both new and existing investors to continue to investment in BOI promoted industrial estates or zones in Pathum Thani and Ayutthaya.

Keywords: Mazars, Thailand, BOI, Tax privileges, Corporate Income Tax, Import Duty Exemption

This incentive is eligible to new investment projects of newly promoted companies or expansion projects of existing promoted companies. The applications must be submitted by the end of 2012.

The tax privileges are:

1. Pathum Thani (BOI Zone 1)

8 year corporate income tax exemption with a cap of 150% of the investment value (excluding land and working capital); and

Import duty exemption on new or used machinery provided that not more than ten years has elapsed between the year that it was manufactured and the year that it was imported.

2. Ayutthaya (in BOI Zone 2)

8 year corporate income tax exemption with a cap of 150% of the investment value (excluding land and working capital);

Import duty exemption on new or used machinery provided that not more than ten years has elapsed between the year that it was manufactured and the year that it was imported; and