Why should you invest in Thailand in 2016?
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New Investment Opportunities in Thailand •Opportunities from AEC integration with Thailand at the center of the fast-growing CLMV countries •Thai VAT and CIT among the lowest in the world •1.7 trillion baht investment opportunities in logistics infrast
2016 Special Investment Promotion Year
The Thai government provides special tax and
non-tax incentives to encourage domestic and foreign companies to invest in Thailand in 2016 to capture growth opportunities from AEC as well as investment opportunities in logistics infrastructure projects.
Incentives to Invest Now
•Double depreciation expense for investment in 2015 - 2016
•PPP Fast Track
Incentives to Invest in Thailand’s New Growth Engines
•Special tax and non-tax incentives for 5 potential industries and 5 future industries
•Triple R&D tax expense deduction
•R&D Promotion for Automobile Industry
•Thailand Future Fund
•Competitiveness Enhancement Fund
Incentives to Invest in AEC Growth using Thailand as a Hub
•Special tax and non-tax incentives for investment in border Special Economic Zones (SEZs)
•Incentives for International Headquarters (IHQ) and International Trade Centers (ITC)
Incentives to Invest Now
Double depreciation expense for 2015-2016
Criteria: All companies that acquire new assets during November 3, 2015 to December 31, 2016. The qualified assets are machinery, equipment, tools, computers, software, vehicles, and buildings (excluding land and buildings for residential purposes).
Incentive: Double depreciation expense for acquiring new assets in 2015 - 2016. (Royal Decree No. 604)
PPP Fast Track
Shorten Public-Private Partnership (PPP) approval process from 25 to 9 months.
Incentives to Invest in Thailand’s New Growth Engines
Special tax and non-tax incentives for 5 potential industries and 5 future industries
Strengthening Existing
S-Curve Seeding New S-Curve
Next-Generation Automotive Robotics
Smart Electronics Aviation and Logistics
Affluent and Wellness Tourism Biofuels and Biochemicals
Agriculture and Biotechnology Digital
Food Processing Industry Medical Hub
Incentives
•10-15 years CIT exemption
•Personal income tax reduction/exemption for international qualified expertise
•Special grants and financial support for qualified projects through the 10-billion-Baht Competitiveness Enhancement Fund
R&D Promotion for Automobile Industry
Automobile industries that use Thailand as a base for R&D prototypes (cars and motorcycles) will be granted tax incentives for qualified R&D centers including import duty, excise tax, VAT, and depreciation expense.
Triple R&D Tax Expense Deduction
A tax deduction up to 3 times will be granted for expense relating to R&D of technology and innovation. The incentive is effective for eligible R&D expenditures incurred from 2015 to 2019. (Royal Decree No. 598)
Thailand Future Fund
100 billion baht investment opportunity in a pool of national infrastructure projects with a minimum guaranteed return.
Incentives to Invest in AEC Growth using Thailand as a Hub
Special Economic Zones Privileges
•Enhanced BOI investment promotion privileges
•Reduced CIT rate from 20% to 10%
•Two-years fee waiver for loan guarantee by the Thai Credit Guarantee Corporation
•Super Clusters incentives: 8-years CIT exemption, an additional 5-years 50% CIT reduction, and import duty exemption on Machinery.
•Other targeted clusters incentives: 3-to-8-years CIT exemption and an additional 5-years 50% CIT reduction
Super Clusters Other Targeted Clusters
Automotive Agro-processing Products
Electrical Appliances Textiles and Garments
Eco-friendly Petrochem
Digital Based
Food Industry
Medical Hub
International Headquarters and International Trading Centers
Tax privileges for IHQ for 15 Years
•CIT exemption for qualified activities incomes received from overseas affiliated entities
•CIT exemption for royalty, dividend, capital gain of transferring share and income from purchase and sales of goods overseas
•10% CIT rate for qualified activity incomes
•15% PIT rate on gross income received from IHQ
for expatriates
•Special Business Tax exemption for loan affiliated entities
•Withholding tax exemption on the interest and dividends paid by IHQ to foreign entities
Tax privileges for International Trading Centers for 15 Years
•CIT exemption for purchase and sale of goods overseas and such goods are not imported to Thailand
•CIT exemption for services relevant to international trade business overseas
•15% personal income tax rate on gross income received from ITC for expatriates
•Withholding tax exemption on the dividends paid by ITC to foreign entities
Being fiscal and Economic Pillar for Sustainable Development
