BANGKOK, 20 September 2019 (NNT) – The Board of Investment (BOI) has approved promotional privileges for projects which will develop human resources and upgrade the Chana district of Songkhla as the fourth Model City.
BOI Secretary General Duangjai Asawachintachit, today disclosed that the latest OI meeting chaired by the prime minister has approved promotional privileges for projects which will bring in foreign investment and stimulate large-scale investment in targeted industries. The promotional privileges include a corporate income tax exemption for 5-8 years. The projects located outside Bangkok are entitled to a 50% deduction in corporate income tax for five years on the condition that they are submitted for promotional privileges in the course of next year and be worth no less than one billion baht in investment capital in 2021.
In addition, a complementary promotional measure is to be provided for projects which seek to develop human resources. Project entrepreneurs should organize skills training for their personnel and allow students to undergo skills training before they enter the job market. The measure provides for expenditure incurred in the training of personnel to be added to the allowable deductions in corporate income tax, for which no minimum cost of such expenditure is set.
In addition, the measure provides for entrepreneurs who may allow students to undergo skills training in science and technology to have the expenditure on such training, qualify for a corporate tax exemption. Those who have their personnel undergo training in targeted technology and be certified by the Ministry of Higher Education, Science, Research and Innovation or the Office of the Eastern Economic Corridor Policy will have twice as much the amount of expenditure on such training entitled to a corporate tax exemption. These entrepreneurs are required to file requests for such promotional privileges in 2021. The BOI will also support the setting up of a private institute for the development of highly skilled personnel for which the corporate tax exemption can be provided for five years. Such a vocational training institution or educational institution will be provided with a duty exemption on the cost of imported machinery while requests for such promotional privileges are to be filed in 2021.
Meanwhile, the BOI approved the upgrade of Chana district of Songkhla as the fourth Model City under the BOI investment promotion policy to provide additional economic connectivity with other countries and support industrial development in the southern border provinces. The fourth Model City will be entitled to the same promotional privileges as the three others Model Cities, including those of Nong Chik district of Pattani, Betong district of Yala and Su-ngai Kolok district of Narathiwat. In a Model City, newly-launched projects and existing projects will be entitled to corporate tax exemptions for eight years and five years respectively.
Meanwhile, a 90% reduction in import duty on raw materials for the manufacture of goods for domestic sales will be provided for 10 years.
