Thailand BOI approves investments to improve digital adoption
The Thailand Board of Investment (BOI) on Monday approved a series of measures to accelerate investments. These investments particularly target industries to encourage business to adopt digital technologies.
“The package to promote large scale projects is to boost investment in the post-Covid-19 period,” Ms Duangjai Asawachintachit, Secretary-General of the BOI. She said this after a board meeting chaired by Prime Minister Gen Prayut Chan-ocha. “We have continuously been implementing measures to promote increased efficiency and productivity. So that our ensure companies are ready to seize the business opportunities arising from the upcoming economic recovery. These digital technology adoption measures complement these existing sets of productivity improvement measures.”
Under the measures to accelerate investment in target industries, projects with realised investments of at least 1 billion baht (USD33 million) within 12 months from the promotion certificate issuance. These companies will be eligible for an additional 50% corporate income tax (CIT) deduction for five years. This deduction is on top of the standard 5-8 years CIT exemption, Ms Duangjai said. Qualified projects must submit applications from January 4, 2021, to the last working day of 2021.
Investments in Digital Adoption covers wide areas
The systems and activities covered under the program include firstly, investments in software integration. Secondly, artificial intelligence (AI). Thirdly, machine learning. And finally, big data analytics. The program will run till the end of 2022. Businesses embarking on the program will receive a 50% corporate income tax exemption for three years on their existing businesses. “We expect to see faster adoption of digital technologies including cloud computing through this incentive scheme.”, Ms Duangjai said. BOI extends the application period to the end of 2022 for the special incentive scheme for SEZs. There has been the continuous implementation of this scheme over the past several years. This extension is to further promote investments in Thailand’s ten Special Economic Zones (SEZ).
The BOI also approved an extension of the application period for projects covering the dedicated districts of the country’s five southernmost provinces to the end of 2022. These areas have a special tax incentive package such as an 8-year tax holidays followed by another five years of 50% reduction. The application submission deadline extension will help to support continued investment in these areas.
The Board also granted Genomics Thailand project located at Burapha University in the Eastern Economic Corridor (EEC) the similar status as EECi, EECd, EECa and EECmd, which are dedicated to specific targeted industries. Investments in these areas will be entitled to additional tax incentives from the Board.
To find out more about the program, visit the Thailand BOI website here.
