BOI rolls out economy-boosting incentives
The Board of Investment (BOI) on Thursday (February 6) approved a wide range of measures to accelerate investment and support all sectors of the economy, from large-scale projects to small and medium-sized enterprises.
The measures also include incentives to help strengthen the grassroots economy and the tourism industry.
“The measures aim to support investment at all levels, from large projects with a significant economic impact to community-level businesses,” BOI secretary general Duangjai Asawachintachit told reporters after the meeting chaired by Prime Minister Prayut Chan-o-cha.
In a follow-up to the “Thailand Plus” package announced by the BOI in September, the first new measure aims to accelerate investment in large-scale projects eligible for corporate income tax-exemptions of 5-8 years by offering an additional 50 per cent corporate income-tax deduction for a period of five years if they realise an investment of not less than Bt500 million in 2020 or a total of not less than Bt1 billion by the end of 2021.
Qualified projects must submit applications before December 30 this year.
To encourage the private sector to participate more actively in improving the competitiveness of the grassroots economy in agriculture and agricultural processing, light industries and community tourism, the BOI approved an extension and improvement of a promotion measures allowing companies to enjoy tax benefits when they invest in such projects.
The revised definition of qualified applicants now includes businesses that have not previously received BOI promotional privileges, as long as they operate in sectors promoted by the BOI. Also, businesses currently enjoying corporate income-tax exemptions can claim additional tax benefits if they invest in or spend on the grassroots economy. Applications for this scheme must be submitted by the end of 2021.
To support the tourism sector and encourage the development of environmentally friendly infrastructure in tourist areas, as well as promoting tourism in less-visited provinces, the BOI extended tax privileges for investments in cable car projects at tourist sites to include electricity-powered tramways, with investments worth at least Bt100 million.
The BOI also relaxed conditions for the hotel business, particularly for SME operators.
Enhanced tax incentives are also given to hotels in 55 less-visited provinces.
In 2019, investment applications filed through the BOI were worth Bt756.1 billion, topping the government’s target.
Of the total value, Bt506.2 billion worth or 67 per cent were applications for foreign direct investment.
