Thailand’s Government
Investment Incentives
for
Smart City Development
Sirapun Yongwattananunth
Investment Promotion Officer
Thailand Board of Investment 1
Introduction To Thailand Board Of Investment
Provides comprehensive information and advice on establishing
operations in Thailand
Coordinates between the foreign business community and other
public agencies
Provides Business Support Services for Investors
Grants “Tax-based incentives” and “Non-Tax incentives
2
BOI Promotion Incentives
Tax Incentives Non-Tax Incentives
Corporate Income Tax Import Duty
Land ownership No restriction on
foreign currency
Corporate income tax Exemption of import duties
exemption up to 13 years on machinery Work permit & visa
No local content
facilitation requirements
50% CIT reduction Exemption of import duties
within 10 years on raw or essential
materials imported for 100% foreign ownership No export requirements
export
Exemption of import duties
on goods imported for R&D
3
Promoted Activities related to Smart City
1 2
Smart City Development Smart Equipment Manufacturing
Smart System Service Providing Software/Platform Development
4
Promoted Activities related to Smart City
1 2
Smart City Development Smart Equipment Manufacturing
Smart System Service Providing Software/Platform Development
5
Incentives and Requirements for Smart City Development
Requirements Thai ownership > 51% Incentives
Smart
Environment
8 years CIT exemption
(with cap) on income from
smart service
ICT infrastructure Smart Environment Open data platform
system plus at least
one of 6 key systems
For EEC,
+50% CIT reduction for 5 years
Import duty exemption
on machinery
Approval from
relevant agencies or Other relevant incentives
committees before Public hearing and KPIs in line with area- under BOI announcement
applying for the local community specific development 2/2014
incentives involvement plan
6
Incentives and Requirements for Smart System Service Providing
Requirements Incentives
8 years CIT exemption
(with cap) on income
from smart service
For EEC,
+50% CIT reduction for 5 years
Eligible projects on
Smart City System must Import duty exemption
on machinery
be part of a Smart City
Provision of at least one Development project Other relevant incentives
of the 7 key systems of approved by relevant under BOI announcement
Smart City agencies or committees 2/2014
7
Promoted Activities related to Smart City
1 2
Smart City Development Smart Equipment Manufacturing
Smart System Service Providing Software/Platform Development
8
Smart Equipment Manufacturing
Requirements Incentives
≥ 0.5% 8 years CIT
Import duty
exemption on
exemption
machinery
(with cap)
≥ 0.5% or ≥ 100 MB Import duty
exemption on
raw or essential
materials
5 years CIT imported for
exemption export
(with cap)
Other relevant
incentives under
BOI
announcement
2/2014
9
Software/Platform Development
Requirements Incentives
Must have Additional Thai IT salary 8 years CIT exemption
expense at least 1.5 million Baht per Year (with cap)
▪ Expense of Additional Thai IT Salary
▪ Expense of Obtaining CMMI/ ISO 29110
Must have significant Development ▪ Expense of Additional Thai IT Salary ▪ Expense of Obtaining CMMI/ ISO 29110
▪ Expense of Training Thai
in Thailand ▪ Expense of Training Thai
Import duty Other relevant incentives
exemption on under BOI announcement
machinery 2/2014
10
11
Thank you
www.boi.go.th
Thailand Board Of
Investment Frankfurt Office:
Paris Office:
HQ: 555 Vibhavadi-Rangsit Ambassade Royale de Frankfurt Office Investment Section,
Road., Thaïlande 8 Rue Greuze, Royal Thai Consulate-General
Chatuchak, Bangkok 10900, 75116 Paris, France Liebfrauenberg26, 60313 Frankfurt am Main,
Thailand Federal Republic of Germany
+ 33 1 56 90 26 00-01 +49 069 9291 230
(+66) 2553 8111 + 33 1 56 90 26 02 +49 069 9291 2320
(+66) 2553 8315 [email protected] [email protected]
[email protected]
