Effective 2 April 2015, Thailand's Board of Investment revised the eligibility conditions for the use of used imported machinery under the Investment Promotion Act B.E. 2520. The amendment is as below -
For general cases -
- For imported used machinery that is between 5-10 years old, the value of the machinery will no longer be counted as investment capital for calculation of the Corporate Income Tax (CIT) exemption cap. The Promotion Act provides exemption from CIT for 8 years for approved projects and this is capped to the total investment capital. Disallowing such machinery for this calculation reduces the maximum eligbile CIT exemption.
For cases of factory relocation -
- Earlier imported used machinery was not specified for factory relocation cases, but now specific conditions have been listed.
- There is no age limit for such imported machinery as exists for imports in general cases
- The value of the machinery will be counted as 100% to the investment capital if the machinery is less than 5 years old, 50% if the machinery is between 5 and 10 years old and 0% if the machinery is more than 10 years old.