Board of Investment increases incentives for 2021.
Thailand’s Board of Investment (BOI) will extend the spirit of giving throughout 2021 as the agency announced it would increase tax cuts and privileges all of next year to convince investors to partner in the Kingdom’s economic resurgence.
Duangjai Asawachintachit, BOI Secretary-General, said that the incentives would be available from 1 January until 31 December 2021. They include an extension of the 50 percent corporate tax reduction for an additional two years on top of the standard eight years.
Thailand already offers some of the most generous incentives for investors in the region. However, the global coronavirus pandemic has caused many investors to hold back or take an overly cautious approach to new ventures or enterprises.
BOI executives, therefore, believe that the time is ripe for additional incentives as a bid to spur potential investors into action.
The deduction extensions can be added to the 13-year tax exemption for companies located in the Eastern Economic Corridor (EEC) advanced development zone. They also apply to businesses located in special economic zones in 10 border provinces.
The full package of measures covers 300 categories of investment. Investors are eligible for an additional 50 percent corporate income tax deduction for 5 years if they are involved in one of 14 targeted industries, among which are agriculture, fisheries, textiles, garments, leather, furniture, jewelry and ornaments.
The BOI also approved the establishment of a new Genomics special economic zone at Burapha University in Chonburi province. Chonburi is part of the three-province EEC area east of Bangkok where high-tech industries are clustered. The EEC is a vehicle and showcase for the transformation of Thailand from labor-intensive industries to a hub for innovation, research and development, creativity, and green and sustainable enterprises.