BOI Investment Zones

There are three Investment Zones divided by economic factors including level of income and the availability of infrastructure as follows:

Zone 1 – High Income and Infrastructure

  • Bangkok, Samut Prakan, Samut Sakhon, Pathum Thani, Nonthaburi and Nakhon Pathom

Privileges:

  • 50 per cent reduction of import duty on machinery that is subject to import duty of not less than 10 percent;
  • Corporate income tax exemption for 3 years for projects located within industrial estates or promoted industrial zones, provided that such a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year; and
  • Exemption of import duty on raw or essential materials used in the manufacturing of export products for 1 year.

Zone 2: Moderate Income and Infrastructure

  • Samut Songkhram, Ratchaburi, Kanchanaburi, Suphanburi, Ang Thong, Ayutthaya, Saraburi, Nakhon Nayok, Chachoengsao, Chon Buri, Rayong and Phuket

Privileges:

  • 50 per cent reduction of import duty on machinery that is subject to import duty of not less than 10 per cent;
  • Corporate income tax exemption for 3 years, increased to 5 years for projects located within industrial estates or promoted industrial zones, provided that such a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year; and
  • Exemption of import duty on raw or essential materials used in the manufacturing of export products for 1 year.

Zone 3 Low Income and Infrastructure

  • All other Thailand provinces not mentioned above.

Privileges:

  • Exemption of import duty on machinery;
  • Corporate income tax exemption for 8 years provided that a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year; and
  • Exemption of import duty exemption on raw or essential materials used in the manufacturing of export products for 5 years.

A project located in one of the following 36 provinces: Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai, Trang, Trat, Tak, Nakhon Ratchasima, Nakhon Si Thammarat, Nakhon Sawan, Prachuab Khiri Khan, Prachin Buri, Phangnga, Phattalung, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai, Surat Thani, Uttaradit, and Uthai Thani shall be granted additional tax and duty privileges as follows:

Project Inside Industrial Zones

  • 50 per cent reduction of corporate income tax for 5 years after the exemption period;
  • Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity;

Project Outside Industrial Zones

  • Deduction can be made from net profit of 25 per cent of the project’s infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.

A project located in one of the following 22 provinces: Chaiyaphum, Kalasin, Nakhon Phanom, Narathiwat, Nan, Nong Khai, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakhon Nakhon, Sathun, Surin, Nong Bualamphu, Amnat Charoen Udon Thani, and Ubon Ratchathani shall be granted additional tax and duty privileges privileges as follows:

  • 50 per cent reduction of corporate income tax for 5 years after the exemption period;
  • Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activities;
  • Deduction can be made from net profit of 25 per cent of the project’s infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.