The Cabinet has agreed to issue additional tax privileges for investors on top of those already provided by the Board of Investment (BOI).
Following the Cabinet meeting, Deputy Prime Minister for Economic Affairs Somkid Jatusripitak revealed that approval was given to measures to stimulate private investment and increase the country’s competitive edge in the long run as proposed by the Ministry of Finance. In cooperation with the BOI, the Finance Ministry is seeking to draw in more foreign investors by offering them two extra privileges to choose from.
As elaborated by Finance Minister Apisak Tantivorawong, the first option will entitle investors to a tax deduction of twice as much as their investment spending.
The second option, meanwhile, will provide an exemption from corporate income tax for four years for those who invest at least 70 percent of their capital between January 2014 and June 2016, and three years for those investing half of the capital within the same period. Two-year and one-year tax breaks will be granted for any investments made by the end of December 2016 and within 2017 respectively. Nonetheless, the combined period of exemption will not exceed eight years.
Investors who are already receiving support from the BOI can choose between the two extra privileges and are required to apply to the BOI and the Revenue Department by December 31st this year