Thailand
Thailand: Relocation tax package to yield B6bn
The Revenue Department expects tax measures supporting the relocation of foreign investors’ production bases to attract investment of around 6 billion baht within three years, says deputy director-general Vinit Visessuvanapoom.
He said the cabinet endorsed an extension of the measures, also known as the Thailand Plus Package, to support the relocation of production bases.
The Thailand Plus Package was scheduled to end in 2022, but was extended until Dec 31, 2025.
The department is waiting for the cabinet to approve a draft law.
The Center of Robotics Excellence expects the tax measures to bring 2 billion baht per year of foreign investment into the country in the field of automation over three years, or 6 billion baht in total.
The tax incentives were initially introduced from 2019 to 2020, attracting three foreign firms with a total investment value of 313 million baht. The initiative was extended to cover 2021 to 2022, attracting 41 foreign firms with a total investment value of 1.54 billion baht.
Mr Vinit said the department recognises how relocation of foreign investors’ production bases to Thailand would help develop Thailand’s industry and improve the skills of local workers.
The department proposed three draft royal decrees under the Revenue Code regarding exemptions that were approved by the cabinet.
Foreign companies can deduct expenses paid between 2023 and 2025, including expenses for investments in automated systems (deductible two times), expenses for hiring highly skilled personnel (deductible 1.5 times) and expenses for promoting the development of highly skilled personnel (deductible 2.5 times).
Source: https://www.bangkokpost.com/business/2570667/relocation-tax-package-to-yield-b6bn