A set of new incentive measures aimed at attracting foreign business to relocate and expedite large-scale investment as well as strengthening workforce development. These measures cover two key areas as follows:

1. Measures to accelerate investment and expedite large-scale projects in targeted industries. An additional 50% reduction of corporate income tax for a period of 5 years will be offered to investment projects located outside Bangkok that are in the targeted industries (those eligible for 5-8 year corporate income tax exemption). Applications must be submitted to BOI by the end of 2020 and an investment of not less than 500 million baht in 2020 or a total of not less than 1 billion baht by end-2021 must be realized.

2. Measures to develop human resources and build up the high skilled workforce, crucial to investment decisions. These measure aim at encouraging companies to provide training and apprenticeship programs as well as incentivizing corporates to establish professional training/educational institutions in science, technology and engineering (STEM). The details of these measures are as follows:

2.1 Training and apprenticeship support: Investment or expenses related to human resource development can be included in the calculation of corporate tax exemption ceiling, with no minimum threshold. Two categories of investment or expenses in HR development can benefit from these measures:

1. 100% of the actual expenses related to apprenticeship programs such as Dual Education, Cooperative Education or Work-Integrated Learning programs will be included in the calculation of corporate income tax exemption.

2. 200% of actual expenses related to providing employees with advanced STEM training, both in-house and external, will be included in the calculation of corporate income tax exemption given that these training courses must be endorsed by the Ministry of Higher Education, Science, Research and Innovation, or the Eastern Economic Corridor Office (in case of educational/training institutions located in EEC).

Applications for these additional incentives must be submitted by the year 2021 and before the end of the project’s corporate tax exemption period.

2.2 Measures to support private sector investment in the establishment of human resource development institutions. Corporates (parent companies) in any business not related to educational or training institutions, when investing in the establishment of STEM education or vocational training institutions endorsed by the Ministry of Higher Education, Science, Research and Innovation, will be eligible to receive a 5-year corporate tax exemption for 100% of the investment fund used for the establishment of the institution. As for the educational or training institutions, they will receive exemption of import duty on machinery. Applications must be submitted by the year 2021 and applicants must be engaged in the BOI eligible activities under the current investment promotion scheme.

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