New law to make Thailand more competitive in targeted industries
A LAW AIMING to enhance Thailand’s competitiveness in targeted industries came into force yesterday, waiving corporate income taxes for up to 15 years and subsidising investment expenses for research and development and innovation.
Hiranya Sujinai, secretary-general of the Board of Investment, said His Majesty King Maha Vajiralongkorn had announced the National Competitive Enhancement Act for Targeted Industries, BE 2560 (2017), on Monday in the Royal Gazette.
According to the act, investment incentives will be widened to make Thailand more competitive with other countries, drawing in targeted industries to invest in here.
The industries that are in line with Thailand’s capabilities will be focused on, while enriching the country’s competitiveness with sustainability.
These industries have to be new to the country or use new technology or advanced production that will bring in development and promotion of innovation.
Among three categories of investment-promotion privileges provided under the act, the first is to waive qualifying firms’ corporate income tax for no more than 15 years.
A Bt10-billion subsidy will be granted for investment in R&D and innovation or development of specific expertise for targeted industries with proper criteria and project details, while other privileges will also be given under the Investment Promotion Act.
These include exemption of import duties for imported machinery, and visas and permits allowing foreign experts and craftsmen to work in the country, but exclude tax waivers and deductibles.
