ANNOUNCEMENT 24 Nov 2010In November 2010, the government of Thailand announced a change in production support.
NUMBER OF INTERVENTIONS
Board of Investment of Thailand. (2011). Promotion of Machinery Upgrade to Improve Production Efficiency
to Alleviate the Impact of the Strengthening of the Baht (Announcement 3/2554). Available at http://www.boi.go.th/english/download/law_regulations/754/por_3-2554.pdf
Effective 24 November 2010, the Board of Investment of Thailand introduced new investment incentives to upgrade production machinery. The stated purpose of these incentives is to counter the effects of a strengthening Baht.
Participating corporations are exempted from income taxes on the revenues of existing projects up to an amount equivalent to 70 % of the machinery investment undertaken using this scheme. This investment cost shall exclude the cost of land and working capital. Furthermore, the credit may last no longer than 3 years after the start of the participation.
Interested companies may apply for these incentives until 31 December 2011. Successful applicants must finish projects within three years after their approval.
Imports of machinery from participating projects are no longer subject to import duties. While this tax relief benefits the competitiveness of the project's output, it is also a targeted tariff reduction for the imported inputs.