At a meeting on 20 December 2021, the Thailand Board of Investment (BOI) approved a series of policy measures for qualified businesses in target areas, including an extension of the investment acceleration package and the EEC incentive package, a special incentive package for the Yothi Medical Innovation Zone, and the classification of AIT and TISTR as science and technology zones.
Ms. Duangjai Asawachintachit, BOI Secretary-General, announced that in addition to the standard 5-8-year Corporate income tax (CIT) exemption, project applications filed by the end of 2022 will be eligible for a 50% CIT reduction for 5 years if they can realize the investment of at least 1 billion baht within 12 months of the investment certificate issuance.
The Thailand Board of Investment (BOI) has approved several policy measures, including the extension of the investment acceleration package and the EEC incentive package, as well as a special incentive package for the Yothi Medical Innovation Zone and the classification of AIT and TISTR as science and technology zones.
The initiatives, according to Ms. Duangjai, were aimed to increase investment in the post-COVID-19 period and assist firms in integrating digital technology. This would help them in preparing for business opportunities that may arise as a result of the approaching economic recovery.
The Board approved a one-year extension of existing incentives to accelerate investment in large-scale projects to further promote investment and fuel economic recovery.
Moreover, the Board approved the extension of the special incentives plan for investments in the Eastern Economic Corridor (EEC) as it is Thailand’s primary area for investment, particularly in designated industries.
Investments in the following target industries (human resources development programs such as co-operative education, work-integrated learning, and dual education), will be eligible for additional corporate income tax advantages.
By the end of 2022, applications for these additional incentives must be received in order to be eligible for the subsidies.
However, investment in Promoted Zones for Specific Industries, such as EECa (Eastern Airport City), EECi (Innovation Hub), EECd (Digital Park), EECmd (Medical Hub), and EECg (Genomics Thailand), as well as investments in industrial estates and promoted industrial parks, will continue to be eligible for such subsidies, such as additional tax benefits (50% reduction of CIT for 2 years, or tax holidays for 1 year) even after 2022.
Enhancing Thailand’s status as ASEAN regional medical hub
The Board also approved the investment promotion zone status for the Yothi Medical Innovation District, a new initiative of the National Innovation Agency (NIA) located in downtown Bangkok. It aims to improve Thailand’s position as a regional medical hub, within the aspects of human resource, knowledge, and technology.
This investment program will foster greater collaboration between local institutions and the commercial sector in the development of deep technology, as well as attract medical startups in promising domains such as tele-medicine and precision medicine. There are currently 7 hospitals operating in the area with a total of 7,000 beds, six medical schools, and 4,600 medical personnel.
This new proposal will provide an additional 5 years of 50% CIT reduction for those who collaborate with related educational or research institutes.
Establishment of New Science and Technology Park
The board also designated the whole campus of the Asian Institute of Technology (AIT) as a brand-new Science and Technology Park, as well as specific parts of the Thailand Institute of Scientific and Technological Research (TISTR). AIT, founded in 1959, is a regional postgraduate institution that offers international Master’s and Doctoral degree programs, as well as research centers in various fields of STEM.
TISTR was established in 1963 to perform science and technology research as well as improve national competitiveness. On top of the regular tax benefits, qualified investments in such locations will receive extra incentives, including a 50% CIT reduction for 5 years.
“We are certain that these policy measures will encourage more collaboration between industry and educational/research institutions within areas of great growth potential in 2022,” stated Ms. Duangjai.
In addition, the Board approved large-scale investment projects in key industries such as electric vehicle manufacturing, cloud computing, energy generation, and seaport infrastructure, in addition to several investment stimulus measures.
Source: Thailand Board of Investment