Thailand
Thailand: Treasury tweaking SEZ perks for companies
The Treasury Department is preparing to adjust investment privileges given to private investors in the department’s special economic zones (SEZs), aligning them with the incentives for the Eastern Economic Corridor.
Adjusting the investment privileges is meant to attract investors who want to invest and develop land in the SEZs, which are located close to the borders of neighbouring countries, in order to build up the local economy, said Yuttana Yimgarund, the EEC’s director-general.
One of the adjustments that will be made to attract investors is the extension of the lease period to 50 years from the previous 30 years, while rental fee is waived for the first two years of the lease period, Mr Yuttana said.
The land use fee, however, remains effective as usual, he said.
The Treasury Department is preparing to open a bid for the use of state properties under its supervision in the SEZs located in Nong Khai, Mukdahan and Tak provinces.
The proposed adjustment to investment privileges in these SEZs will be forwarded to the cabinet by October, Mr Yuttana said.
For measures to reduce the rental fee at state properties leased to the private sector for commercial purposes, they are expected to be finalised by the end of this month, he said.
The principal method of assessment will be evaluated based on the balance sheet of each business, Mr Yuttana said.
For instance, a rental fee reduction can be done based on the year-on-year percentage change of revenue losses.
The Treasury Department will make further assessments on whether to approve the request of some businesses, such as hotels, asking to stall rental fee payments for this year, Mr Yuttana said.
The department projects revenue generated from rental fees of state properties to fall by 3 billion baht for fiscal 2021.
Source: https://www.bangkokpost.com/business/1988823/treasury-tweaking-sez-perks-for-companies