Seven steps for BOI investment promotion in the EEC
Thailand’s Board of Investment’s (BOI) special investment promotion in the Eastern Economic Corridor (EEC) is designed for the government’s policy to drive Thailand towards the new era of Thailand 4.0. in the three provinces Chachoengsao, Chonburi, and Rayong.
Projects eligible for special investment promotion incentives in the Eastern Economic Corridor must have the following three qualifications, as follows:
- One of the targeted industries
- Cooperation with local institutions
- Investment promotion zones or area or estate.
#1. Targeted industries: As the first qualification, projects have to be done by one of Thailand’s ten target industries to drive the Thai economy towards sustainability:
- First S-Curve Industries (Next-Generation Automotive Industry, Intelligent Electronics Industry, Advance Agriculture and Biotechnology, Food Processing Industry, and High Wealth and Medical Tourism Industries)
- New S-Curve industries (Digital Industry, Robotics Industry, Aviation and Logistics Industry, Comprehensive Healthcare Industry, and Biofuel and Biochemical Industries)
#2. Cooperation: As the second qualification, the activity must be established in close cooperation with educational and research institutions, Center of Excellence etc. The types of cooperation must be approved by the BOI e.g. cooperation in the area of Talent Mobility, Work-integrated Learning (WiL), Dual Vocational Training (DVT), Cooperative Education, special vocational education projects in the EEC or other types of cooperation to develop human resources or technology.
The existing requirements for human resources development in certain projects, such as Innovation Incubation Center, are not considered as a fulfillment of the conditions set under the EEC measure.
#3. Investment promotion zones: Projects must locate in one of three designated areas. The first designated area covers the investment promotion zones for targeted activities.
- Digital Park Thailand (“EEDc”)
- Eastern Airport City (“EECa”)
- Eastern Economic Corridor of Innovation (“EECi”)
#4. Investment promotion areas: Alternatively to investment promotion zones, the project must be in one of these 21 designated areas:
#5. Industrial estates: BOI-promoted industrial estates or zones in Chachoengsao, Chonburi and Rayong consist of the following 18 areas:
#6. The scope of BOI tax investment promotion
Tax incentives for the investment promotion zones, investment promotion areas and BOI-promoted industrial estates are tax holidays for 5 plus 2 till 10 plus 3 years. A 50% corporate tax exemption is possible for the following years. The exact scope of tax holidays and reductions has to be evaluated on a case-by-case basis.
Non-tax incentives cover the right to 100% share ownership, land acquisitions and various other benefits.
#7. Application deadline: Project applications must be submitted before December 30, 2019.
Professional services from Bangkok
PUGNATORIUS Ltd. advises foreign companies regarding the legal framework in the Eastern Economic Corridor. Detailed explanations are available at “Legal advice, tax structuring, transaction support services and business matchmaking on Thailand’s Eastern Economic Corridor”.
Also, the law firm provides an international clientele with seven BOI-related services:
- BOI promotion advice
- BOI application support
- Ongoing reporting and compliance requirements
- BOI promotion management
- Restructuring and exit advice
- BOI tax advice
Details on this at “Legal services on BOI investment promotions“.