Thailand: BoI backs raft of incentives to spur EEC

• The Board of Investment (BoI) on 9 May 2018 approved a raft of tax measures for investment projects that aim to upgrade the quality of life for both Thai and foreign workers, while also driving the country’s technological development.
• The BoI is offering promotional privileges for a new investment category — a smart logistics hub in the Eastern Economic Corridor (EEC). Qualifying investors will receive eight years of corporate tax exemptions incurred from offering international logistics services.
• Qualifying candidates are required to invest at least THB1bn and hire at least 20% Thai staff working in artificial intelligence, smart warehouses, data centers, data science, data analytics and digital transactions.
• Investors are also required to offer training on big data and data analytics and conduct R&D for educational institutes in Thailand.
• Duangjai Asawachintachit, secretary-general of the BoI, said to promote investment in science and technology, investors in the Eastern Economic Corridor of Digital or Eastern Economic Corridor of Innovation will be entitled to the maximum corporate income tax exemptions for 13 years, up from 10 years.
• Meanwhile, those who invest in the Science and Technology Park, which is located outside of the EEC, will also be allowed to enjoy corporate tax exemption for 12 years.
• The board also approved tax privileges for smart city development to facilitate investment in transport projects, education, safety, the ease of doing business, state services, the energy sector and the environment. Qualifying investors will enjoy eight years of corporate tax exemption.
• Developers or industrial estate operators who build smart cities are also required to invest in infrastructures such as fibre optics, public WiFi and open data platforms.
• In addition, the board also endorsed promotional privileges for construction of housing for both Thai and foreign workers. The lodgings must comply with International Labour Organisation standards.
• Investors will be allowed to operate nationwide, with three years of corporate income tax exemption, except those investing in the special economic zones (SEZs) in 10 provinces, where corporate income tax exemption of six years is allowed.

External Link: https://www.bangkokpost.com/business/news/1461905/boi-backs-raft-of-incentives-to-spur-eec