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Press Release Detail

Thailand BOI approves revised incentives to promote investment in the EEC area

The Board of Investment (BOI) has agreed to extend and revise the investment incentives package for investment projects in the Eastern Economic Corridor (EEC). The new package is extended to investments outside industrial estates or promoted industrial zones as well, and the list of target activities is expanded to cover more activities.

Ms. Duangjai Asawachintachit, BOI’s Secretary General, said after a board meeting chaired by Prime Minister Gen. Prayut Chan-o-cha that the meeting had approved the revised incentives for investment in the Eastern Economic Corridor (“EEC”) which contains the following key features:

1.Activities eligible for additional incentives cover all categories entitled to at least 5-year tax holidays, except those that have no specific location (such as air transport services and maritime transport services, etc.) or those required to be located in areas outside the three EEC provinces, such as special economic zones (SEZ), and the 20 provinces with low capita income.

2.Apart from a standard tax package, additional tax incentives (3 years of 50% reduction of corporate income tax or 2 year tax holidays) will be granted to investments projects in the targeted activities located in the EEC which are engaged in human resource development programs such as co-operative education programs, work-integrated learning and dual education programs. Moreover, additional corporate income tax benefits (2 years of 50% reduction of corporate income tax or 1 year of 100% exemption) are also granted to investments located in EECi, EECd, EECa and EECmd as well as industrial estates and promoted industrial parks.

To be eligible for the above incentives, applications must be submitted to BOI from 2 January 2020 to the last working day of 2021. However, projects located in the four promoted zones for specific industries (EECi, EECd, EECa and EEDmd) are eligible for the incentives without application deadline.

BOI to consider new comprehensive incentive packages for SMEs

The Board also assigned the BOI to work with other public agencies and private sector representatives in the preparation of comprehensive incentive packages to promote investment by small and medium-sized enterprises (SMEs). The new packages will aim to improve and integrate support to the agricultural, tourism, and service sectors.

In the meantime, the meeting agreed to extend the validity of the existing SMEs promotion measures to the end of February 2020.

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