- February 12, 2020
- Posted by: admin
- Category: Daily News
- The cabinet on 11 Feb 20 approved additional tax measures for private investment in 10 special economic zones (SEZs) and flagship Eastern Economic Corridor (EEC).
- One of the two measures is a reinstated corporate income tax of 10%, down from 20%. The previous 10% rate expired in Dec 17.
- The 10-year measure will be offered for investment projects located in the 10 SEZs. Interested investors are required to register with the Finance Ministry by 31 Dec 20.
- With the tax cut, the Finance Ministry estimates forgone revenue at THB4mn per year. The perk is meant to boost private investment in SEZs and create more jobs in border areas.
- The second measure is a tax deduction of up to three times annual revenue for private companies that contribute or donate to EEC human resource development institutes focused on Industry 4.0. The tax deduction must not exceed THB100mn.
- This measure will be implemented between 31 Jan – 31 Dec 20.
- The cabinet on also approved an exemption from value-added tax (VAT) and special taxes for private companies located in the EEC area. The Finance Ministry estimates the VAT exemption to cost THB120mn in forgone revenue.
- On 6 Feb 20, the Board of Investment (BoI) approved a number of stimulus measures to spur investment in domestic projects.
- The measures were designed to attract investment in large-scale projects that have significant economic impact from actors of all sizes, from large corporations to community-run businesses.
- The measures are a follow-up to the Thailand Plus stimulus package announced by the BoI in Sep 19. Companies will be exempt from paying corporate income tax for 5-8 years, with a 50% corporate tax deduction for the following five years, if they invest at least THB500mn in 2019 and at least THB1bn in total by end 2021 in large-scale projects approved by the BoI. Applications must be submitted by Dec 30.
External Link : https://www.bangkokpost.com/business/1855459/sez-eec-perks-get-cabinet-nod