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Thailand: BoI sending signal with EEC perks
The Board of Investment (BoI) yesterday approved the investment categories in the Eastern Economic Corridor of Innovation (EECI) and the Eastern Economic Corridor of Digital (EECD) that will be entitled to its promotional privileges.
Secretary-general Duangjai Asawachintachit said the investment categories in the EECI are required to conform to six targeted industries designated by the Science and Technology Ministry, comprising agriculture and biotechnology; high-performance batteries and next-generation automotive; aviation; bioenergy and biochemical; automation machines, robotics and smart electronics; and medical instruments.
The target businesses will be divided into two groups: R&D and R&D-supporting businesses and manufacturing or services related to the six targeted industries.
For EECD Park Thailand, which is handled by the Digital Economy and Society Ministry, investment is divided into two groups — R&D and R&D-supporting activities and digital business, including high value-added software, cloud service, data centres and digital services.
Ms Duangjai said investment projects in the EECI and EECD will also be entitled to a two-year extension of investment privileges as approved by board on Nov 23 for projects in the special promotion zones of the Eastern Economic Corridor (EEC).
Under the two-year extension, existing privileges, including a corporate income tax exemption for eight years and a 50% reduction in corporate income tax for an additional five years after the tax holiday, are scheduled to expire at the end of this year.
The board also approved an extension of the corporate income tax exemption of 8-10 years and a 50% cut on corporate income tax for an additional five years after the tax holiday.
The new perks will be offered to investors in three special zones at the EEC, while applicants for the new privileges are also required to cooperate with educational institutes, research centres or other excellence hubs on human resource development and employee training.
The three special zones are the aviation promotion zone at U-tapao airport, the EECI and Digital Park Thailand.
She said the board yesterday also approved an extension of its promotional privileges for small and medium-sized enterprises (SMEs) for another two years, as existing measures designed to increase the capabilities of Thai SMEs are scheduled to expire on Dec 31.
But eligible SMEs are required to be 51% Thai-owned, maintain a debt-to-equity ratio of 3:1 and have investment cost of at least 200 million baht, excluding land, working capital or net fixed assets.
Source: https://www.bangkokpost.com/business/news/1381423/boi-sending-signal-with-eec-perks