Presentation Outline
•Why Thailand
•Sectors of Opportunity
•Investment Policies and BOI Services
Why Thailand
At the Center of Southeast Asia: Thailand is the World’s
•17thlargest manufacturer
•23rdlargest industrial output
•24thbiggest economy by purchasing power
•28thbiggest exporter (as % of total world goods)
The World Bank Ranks
Thailand among the easiest
places to do Business in
Asia and 18thin the World
Five Targets for Infrastructure Development in Transportation
-To revamp the provincial rail network
-To improve public transport systems to ease traffic congestion in Bangkok
-To boost the capacity of highways to connect with production bases in rural areas and neighboring countries
-To improve the efficiency of water and air transport systems.
Infrastructure Development Projects for 2015-2022
All proposed projects are to be prioritized.
Likely projects include
Dual track rail
Construction of broadwalk along the Chaopraya River
Expansion of skytrain, MRT
Expansion of airports in border provinces
Improvements of river portsand dredging of waterways
Improvements of highways connecting neighboring countries
Sectors of Opportunities
Thailand’s Energy Policy
1.Enhancing energy related industries & business to be next generation value-creator.
2.Securing country’s energy supply.
3.Pricing energy right.
4.Up-scaling RE mix to 25% in 10 years.
5.Targeting energy intensity reduction by 25% (based on 2010 level) within 20 years.
BOI Incentives for Automotive Makers
Manufacture of passenger cars
Condition:
•The actual production must not be less than 100,000 units/year in any year during the first five years of operation.
•All production must be based on the same platform approved by the Board.
•The total investment during the first 5 years of corporate income tax exemption must not be less than 15 billion baht, excluding cost of land and working capital.
•An investment plan for parts production and a plan for parts utilization must be submitted and approved by the Board.
Rights and benefits:
•Exemption of import duties on machinery regardless of zone.
•5-year exemption of corporate income tax regardless of zone.
•Other rights and benefits shall be granted according to BOI Announcement
1.Manufacture of vehicle parts (General parts)
Incentives
•Exemption of corporate income tax (Cap)
Zone 1 -3 years (In Industrial Estate)
Zone 2 -3 years (Outside IE) / 7 years
(In Industrial Estate)
Zone 3-8 years
•Exemption of import duties on machinery
•Exemption of import duties on raw materials for production of exports
Attractive Investment Incentives
•TheBOIhasclassifiedsoftwaredevelopmentasapriorityactivitythatiscrucialtothecountry’sdevelopment.
•SoftwaredevelopmentventuresareeligibleforthemaximumincentivesofferedbytheBOIregardlessoflocation,irrespectiveoftheBOIzoneinwhichtheychoosetolocate.
•Priorityactivityincentivesinclude:
–Amaximumcorporateincometaxexemptionof8yearswithnocapontheamountexempted;
•Importdutyexemptionsonmachinery;
•Thepossibilityof100percentforeignownership;
•Theoptiontobringinforeignexperts.
–TheBOIalsooffersmanyotherzone-basedincentives,including
•Doubledeductionfromtaxableincomeofutilityandtransport
costsforupto10yearsinZone3.
BOI Incentives
1.11.8 Manufacture or preservation of ready-to-eat or semi-ready-to-eat food is classified as a priority activity of special importance and benefits to the country.
Conditions:
–Products must use modern technology, production process, tools and equipment and inspection (current or innovative technology)*.
Rights and benefits:
–Exemption of import duty on machinery for all zones.
–Eight-year corporate income tax exemption for all zones with no cap.
–Other relevant location-based incentives.
Investment Policies and BOI Services
New Investment Promotion Strategy Direction
Promote investment to restructure Thai economy for
sustainable development and to overcome “Middle Income Trap”
Promote competitiveness development and value creation of industrial sector
Promote green industry to drive balanced and sustainable growth
Promote new industrial clusters in the regions to create new investment
concentration
Promote Thai overseas investment in order to increase competitiveness of Thai businesses
Driving Skill, Technology and Innovation Investmentthrough Investment Incentives
Incentives: Additional 1-3 years of tax holidays
Criteria: Investments and expenditures on
•Research and development or design
•Advanced technology training
•Funding educational and research institutions
•Contribution to S&T Development Fund
Presentation Outline
•Why Thailand
•Sectors of Opportunity
•Investment Policies and BOI Services
Why Thailand
At the Center of Southeast Asia: Thailand is the World’s
•17thlargest manufacturer
•23rdlargest industrial output
•24thbiggest economy by purchasing power
•28thbiggest exporter (as % of total world goods)
The World Bank Ranks
Thailand among the easiest
places to do Business in
Asia and 18thin the World
Five Targets for Infrastructure Development in Transportation
-To revamp the provincial rail network
-To improve public transport systems to ease traffic congestion in Bangkok
-To boost the capacity of highways to connect with production bases in rural areas and neighboring countries
-To improve the efficiency of water and air transport systems.
Infrastructure Development Projects for 2015-2022
All proposed projects are to be prioritized.
Likely projects include
Dual track rail
Construction of broadwalk along the Chaopraya River
Expansion of skytrain, MRT
Expansion of airports in border provinces
Improvements of river portsand dredging of waterways
Improvements of highways connecting neighboring countries
Sectors of Opportunities
Thailand’s Energy Policy
1.Enhancing energy related industries & business to be next generation value-creator.
2.Securing country’s energy supply.
3.Pricing energy right.
4.Up-scaling RE mix to 25% in 10 years.
5.Targeting energy intensity reduction by 25% (based on 2010 level) within 20 years.
BOI Incentives for Automotive Makers
Manufacture of passenger cars
Condition:
•The actual production must not be less than 100,000 units/year in any year during the first five years of operation.
•All production must be based on the same platform approved by the Board.
•The total investment during the first 5 years of corporate income tax exemption must not be less than 15 billion baht, excluding cost of land and working capital.
•An investment plan for parts production and a plan for parts utilization must be submitted and approved by the Board.
Rights and benefits:
•Exemption of import duties on machinery regardless of zone.
•5-year exemption of corporate income tax regardless of zone.
•Other rights and benefits shall be granted according to BOI Announcement
1.Manufacture of vehicle parts (General parts)
Incentives
•Exemption of corporate income tax (Cap)
Zone 1 -3 years (In Industrial Estate)
Zone 2 -3 years (Outside IE) / 7 years
(In Industrial Estate)
Zone 3-8 years
•Exemption of import duties on machinery
•Exemption of import duties on raw materials for production of exports
Attractive Investment Incentives
•TheBOIhasclassifiedsoftwaredevelopmentasapriorityactivitythatiscrucialtothecountry’sdevelopment.
•SoftwaredevelopmentventuresareeligibleforthemaximumincentivesofferedbytheBOIregardlessoflocation,irrespectiveoftheBOIzoneinwhichtheychoosetolocate.
•Priorityactivityincentivesinclude:
–Amaximumcorporateincometaxexemptionof8yearswithnocapontheamountexempted;
•Importdutyexemptionsonmachinery;
•Thepossibilityof100percentforeignownership;
•Theoptiontobringinforeignexperts.
–TheBOIalsooffersmanyotherzone-basedincentives,including
•Doubledeductionfromtaxableincomeofutilityandtransport
costsforupto10yearsinZone3.
BOI Incentives
1.11.8 Manufacture or preservation of ready-to-eat or semi-ready-to-eat food is classified as a priority activity of special importance and benefits to the country.
Conditions:
–Products must use modern technology, production process, tools and equipment and inspection (current or innovative technology)*.
Rights and benefits:
–Exemption of import duty on machinery for all zones.
–Eight-year corporate income tax exemption for all zones with no cap.
–Other relevant location-based incentives.
Investment Policies and BOI Services
New Investment Promotion Strategy Direction
Promote investment to restructure Thai economy for
sustainable development and to overcome “Middle Income Trap”
Promote competitiveness development and value creation of industrial sector
Promote green industry to drive balanced and sustainable growth
Promote new industrial clusters in the regions to create new investment
concentration
Promote Thai overseas investment in order to increase competitiveness of Thai businesses
Driving Skill, Technology and Innovation Investmentthrough Investment Incentives
Incentives: Additional 1-3 years of tax holidays
Criteria: Investments and expenditures on
•Research and development or design
•Advanced technology training
•Funding educational and research institutions
•Contribution to S&T Development Fund
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