BoI waivers please some manufacturers, disappoint others

While the BOI decided to extend the corporate tax waive period to the factories, not all would be entitled to the privilege.

Of the 1,468 factories inundated by the floods, only 668 will be eligible for the extended waiver.

According to Secretary General Atchaka Sribunruang, this decision would cause a loss of tax revenue of Bt12 billion a year.

The privileges are split in two categories and cover only factories for which investment privileges have not yet expired.

“Those not qualified will have to ask for other assistance from the government,” she said.

In the first category, factories subject to a tax exemption limit will enjoy a new eight-year tax exemption. Factories that decide to operate at the same manufacturing sites will enjoy exemption up to 150 per cent of the rehabilitation investment. Tax exemption for those deciding to relocate plants will be only 100 per cent of investment value.

In the second, factories without a tax exemption limit will be offered extra time. Those with privileges remaining for no more than 3 years will see the period extended up to 8 years.

A two-year 50 per cent tax exemption will be given to those with privileges remaining for no more than 5 years.

A four-year 50 per cent tax exemption will be given to those with privileges remaining for no more than six years.

A five-year 50 per cent tax exemption will be given to those with privileges remaining for more than seven years.

The board also resolved to provide an eight-year tax waiver to the industrial estates investing in flood-prevention systems. However, the maximum tax waived must not exceed 200 per cent of the investment.