BoI approval tax waivers for flood-hit plants
The BOI's board of directors has approved the promotion of investment for factories affected by the flooding and for industrial estates in general, but only 668 factories whose Board of Investment privileges have not expired will be eligible for the bene
The maximum benefit is an extension of a corporate-tax exemption for another eight years. The measures approved by the board yesterday will cause a tax loss of up to Bt12 billion per year, said BOI secretary-general Atchaka Sibunruang.
She said the privileges were split into two categories to cover only factories of which investment privileges have not expired. First, factories facing expiry of tax exemptions will enjoy a new eight-year exemption. Factories that decide to continue operating at the same sites will enjoy exemptions up to 150 per cent of their investment on rehabilitation.
Tax exemptions for those deciding to relocate is only 100 per cent of the investment value.
Second, factories not facing tax-exemption expiry will be offered an extra exemption period. Those with privileges remaining for no more than three years will see the period extended up to eight years. A two-year 50-per-cent tax exemption will be given to those with privileges remaining for no more than five years. A four-year 50-per-cent exemption will be given to those with privileges remaining for no more than six years. A five-year 50-per-cent exemption will be given to those with privileges remaining for more than seven years.
Atchaka said industrial estates that invest in flood-prevention systems would be given a corporate-tax exemption for eight years under certain limitations.
According to the BOI, 668 factories in flood-hit areas are eligible for the new investment incentives, while about 800 companies will not enjoy the benefit as their privileges have already expired.
Atchaka said the board of directors yesterday also approved a target for investment applications in 2012 of Bt600 billion. This year, the applications for BOI privileges have a combined investment value of Bt663 billion, an increase of 21 per cent from Bt412 billion in 2010. That number exceeds the BOI’s target of Bt500 billion this year.
Investments in projects in the service and infrastructure sectors have the highest value of Bt251.1 billion, increasing by 80 per cent from Bt139.7 billion in 2010.
About 1,020 foreign direct investments with a combined value of Bt390.92 billion applied to the BOI.
The number of FDI projects rose by 18 per cent from the previous year, while investment value grew by 67 per cent from Bt187.75 billion in 2010.
The board of directors yesterday approved incentives to 18 projects with a combined investment value of Bt29.692 billion, of which eight have a combined investment size of Bt7.5 billion.
