BOI’s New Investment Policy to Draw Huge Business in Thailand
In a bid to promote new packages and share with investors the country has updated investment policy. It is believed that the investment package will raise the country’s momentum followed by a 25% increase in the applications received against the last year’s target.
Earlier, Thailand has set a goal to attract 720,000 million baht investment application that actually resulted in over 900,000 million Baht investment application. However, this is credited to the country’s comprehensive ecosystem for investment, and ranging from concrete progress of infrastructure development in order to clear national direction and government support.
On the other hand, for 2019, BOI has fixed an investment application target at 750,000 million baht. It is expected that the country’s investment year package and the new investment policy will boost the value and will allow the government to achieve its target.
Realizing that big investment projects that adopt advanced technology are important to boost the economic growth and transformation, the Board of Investment has initiated the new investment plan. The package is to attract assignments with a minimum investment value of 1,000 million baht in the targeted activities are entitled to 5–8 years of tax holidays.
As for the application, it will be opened until 30th December 2019 and the projects will get a 50% reduction of corporate income tax for 3 years on the top of the basic package. The targeted activities include manufacturing of aircraft or aircraft parts, manufacturing of advanced technology electrical products, research and development, manufacturing of medical devices, biotechnology, and digital services, etc.
Very recently, BOI has introduced a new measure to attract investment in the rail system development, focusing more on the engineering activities and a range of investments that are related to rail systems like passenger cabins, bogies, electrification systems, signaling systems, and system control units.
Those who will be applying for rail system development project, they must make the application by 30th December 2021 and will be eligible for 50% corporate income tax reduction for 3–5 years, based on designated locations.
Additionally, this special package is to help kick-start establishment of rail production hub in the northeastern region, wherein there will be many supporting factors like existing automotive part and assembly industries, universities, and upcoming development of rail networks.
