Conditions relaxed for low and middle-income housing and expanded for new listings in capital market
At its 10 June 2009 meeting, the Board of Investment (BOI), chaired by H.E. Prime Minister Abhisit Vejjajiva, approved a new incentive scheme for the automobile industry, revised conditions related to low and middle-income housing projects, and removed limitations on the corporate income tax waiver for companies listing on the Stock Exchange of Thailand (SET) or Market for Alternative Investments (MAI).
Automobile Projects
To attract foreign direct investment in the automobile sector and to expand the range of opportunities for manufacturers of automotive parts and components, the Board announced it would promote large-scale investments for vehicles not yet produced in Thailand that use new technology. The new policy, which is designed to attract international automakers looking to restructure by relocating their production facilities to a more competitive location, offers exemption of import duties on machinery, regardless of location, and corporate income tax holidays of five years for projects investing a minimum of Bt 10 billion (excluding land cost and working capital) and six years for projects investing a minimum of Bt 15 billion (excluding land cost and working capital).
In addition, projects that apply under this promotion scheme during 2009 will receive an additional year of corporate income tax holiday. Total corporate income tax exemption under this promotion scheme may not exceed the capital investment, not including land and working capital.
To be eligible for this new policy, companies must submit their project application by the end of 2010, must invest a minimum of Bt 10 billion, exclusive of land cost and working capital, must invest in a new assembly line, must include the production of a new model that has never been manufactured in Thailand, and must be equipped with high-technology systems (e.g. hybrid drive, brake energy regeneration, electronic stability control, etc.), as approved by the Board of Investment. Actual production must be at least 100,000 vehicles per annum in any year during the frst fve years of operation and the company must submit their investment plan/sourcing plan for parts and component to the Board of Investment.
Read More at the BOI Website
