To encourage and expedite more foreign investments in Thailand, the Board of Investment has announced new investment promotion policies. As of September 2019, the BOI announced a new package covering comprehensive measures with investment acceleration incentives, fiscal measures supporting STEM manpower development, deregulation, and improved pre and post-investment services.
The Thailand Plus Package, it majorly covered the following aspects closely related to foreign investments –
- Enhanced Investment Incentives: Investments worth a minimum of 1 billion baht (USD 32 million) will be entitled to a 50% reduction in the corporate income tax for five years.
- STEM Manpower Development Support: Employers will be eligible for a special deduction on training expenses if it is targeted towards science, research or innovation. It is also applicable on expenses spent for hiring highly skilled employees in the fields of science and technology.
- Automation Investment Support: To strengthen and boost the transformations in Thailand’s industry, special attention is provided by the BOI. For this, investments in automation systems are made eligible to receive a double deduction.
- Enhanced Investment Facilitation: For the purpose of consideration and facilitation of large investment projects, a steering committee chaired by the Prime Minister is going to be set up.
These are a few of the key points of the Thailand Plus Package which are all set to enhance the investment and business opportunities for foreign investors. Secretary-General of BOI, Ms. Duangjai stated that the new policies are targeted to increase the ease of doing business in the country. She also expressed that the government is aiming to reduce the constraints faced by foreign investors in doing business in Thailand.
Amendment in the investment opportunity and frameworks has been able to attract 1717 applications for investment promotion worth 481.1 billion baht (USD 16 billion) in 2020. A major portion of the investments is made in the target industry of Thailand. These are electric appliances and electronics, agriculture and food processing, automotive and parts, petrochemicals and chemicals along biotechnology. And also, the medical sector witnessed a growth of 165% in the number of applications as it was in 2019.
