Thailand’s new investment rules for the Digital Age

THAILAND has announced a raft of new investment rules focussing on digital innovation and genomic medicine. It is also promoting investment into 20 rural SEZs for businesses in 14 target groups . . .

BANGKOK -- Thailand's Board of Investment (BOI) has approved new measures to help accelerate investment and to promote adoption of digital technologies. Lawyers Baker & McKenzie summarise the new incentives as follows:

1. Large investment projects: The BOI offers a corporate income tax reduction of 50% for a period of five years from the expiry of the normal corporate income tax exemption period (which is normally 3-8 years from the time the promoted project first generates income).

A key condition is that there must be an actual investment of at least THB 1 billion within 12 months after being issued with the BOI promotion certificate.

Applications are accepted from January 4, 2021 until the last business day of 2021.

2. Digital upgrade: Additional incentives, including three years of corporate income tax exemption from the time the promoted project first generates income, will be granted to existing companies in order to promote the use of digital technology to improve efficiencies, increase competitiveness and stimulate domestic demand.