Thailand Plus – New Relocation Incentives for foreign investors

BANGKOK - Thailand is encouraging foreign investors to relocate to Thailand, with new investment incentives announced by the Thai government and the Thailand Board of Investment.

Thailand's economic ministers recently announced the "Thailand Plus" package of investment incentives, which aims to attract more foreign investment, and in particular, expedite investments from companies seeking to relocate to Thailand as a result of the US-China trade war.

Lawyers Baker McKenzie have detailed some of the key measures in a Client Alert.

BM says the Thailand Plus package aims to enhance Thailand's attractiveness as an investment location by:
* Investment acceleration incentives -- e.g. additional incentives if invested by 2021;

* Promotion of STEM (science, technology, engineering, and mathematics) manpower development;

* De-regulation of restrictive legislation relating to foreign investment; and

* Improvement of pre-and post-investment services.

Thailand's Board of Investment, in support of the Thailand Plus package, has announced enhanced investment incentives.
BM says sthe BOI will grant an additional five years of 50% reduction of corporate income tax to projects that:
* Apply for investment promotion by the end of 2020; and

* Have in place actual investment worth at least THB 1 billion (around USD 32.26 million) by end of 2021.

BOI is also establishing a one-stop service to service investors, and the Government has delegated authority to the Office of the Board of Investment to help facilitate foreign investors to invest in and relocate to Thailand.
Measures to promote manpower development have also been announced.
The BOI will allow 200% of actual expenses related to providing employees with advanced STEM training to be included in the calculation of the corporate income tax exemption cap.

Employers will also be eligible to make special deductions for:

* Training expenses related to advanced technology; and* 

* Expenses spent hiring new highly skilled manpower, in fields of science and technology.

Investments in automation systems will be entitled to additional deductions in order to further strengthen and accelerate the transformation of Thailand's industries.
BM says the BOI is expected to announce the relevant regulations soon.

www.bakermckenzie.com (ATI).