Thailand Merit-based Incentives: Know Everything
Merit-based incentives; sounds new to you? Thailand as usual always keeps on trying new ways to enhance the country’s competitive environment and to overcome the ‘middle-income trap’, so that a sustainable growth is achieved. This is why Thailand merit-based incentives are now being granted to promote valuable investment, both in the country and outside. Let’s take a look on what basis this type of incentive is given;
I. Merit-Based Incentives on Competitiveness Enhancement
Additional corporate income tax incentives can be granted based on investment/expenditure ratio.
Eligible Investments or Expenditures:
1. Research and Development: in-house, joint R&D with overseas institutes or outsourced in Thailand
2. Donations made to the Technology and Human Resources Development Funds, specialized training centers, R&D institutes or governmental agencies in S&T field in Thailand, educational institutes
3. IP acquisition/licensing fees for commercializing technology that is developed in Thailand
4. Advanced training on technology
5. Development of the local suppliers having at least 51% Thai shareholding in technology training or technical assistance.
6. Product and Packaging Design both in-house and outsourced in Thailand, approved by the Board.
II. Merit-Based Incentives on Decentralization
Projects located in twenty provinces having the lowest per capita income will receive;
- 3 additional years of CIT exemption
- an additional 50% reduction on CIT for 5 years
- Double deductions from the transportation, electricity and water supply costs for ten years
- Additional 25% reduction of the installation cost
III. Merit-Based Incentives on Industrial Area Development
Projects situated in the industrial estates or in the promoted industrial zones including Nakhon Phanom, Bueng Kan, Sakhon Nakhon, Phrae, Chaiyaphum, Roi Et, Kalasin, Nan, Buri Ram, Yasothon, Maha Sarakham, Ubon Ratchatani, Hong Son, Mukdahan, Mae, Nong Bua Lamphu, Si Sa Ket, Sa Kaew, Surin, Sukhothai and Amnatcharoen will get 1 additional year of CIT exemption.
