The Investment Promotion Act (No. 4) administered by the Board of Investment (BOI) has recently been issued and amends certain provisions which became effective from 25 January 2017.
The highlights of the amendments relevant to the investment incentives are:
- A 50% corporate income tax reduction for up to 10 years;
- The right to claim a tax deduction of no more than 70% of the
total investment capital within 10 years from the year in which
revenue is first generated. This is in addition to normal
This amendment is aimed at encouraging continued investment in Thailand.
In addition to the above amendments, it is expected that new legislation may be issued to provide an opportunity to obtain investment privileges for businesses that may not otherwise qualify under the existing prescribed categories of promoted businesses under the Investment Promotion Act. At this stage there is no definite information on the target industries, criteria for qualification, framework for the new legislation or how it will operate. We understand that a committee will be established to spearhead this new initiative. We will update readers on new developments in this regard.
If you are considering making a new investment, it is important to understand how these new rules may apply to your business in order to benefit from tax and non-tax incentives available. If you have applied to the BOI for an investment promotion and your application is currently in progress, it is advisable to liaise with the BOI to ensure that any tax benefits and privileges are maximized under the new rules. KPMG Thailand has a team of dedicated tax and legal experts who have been monitoring these recent developments and liaising with the BOI.
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