ANNOUNCEMENT 28 Feb 2013In February 2013, the government of Thailand announced a targeted tax change.
NUMBER OF INTERVENTIONS
On 28 February 2013, Thailand issued Announcement No. 1/2556 providing incentives for investments in certain industries.
The announcement introduces the following changes:
1) Investments in target industries relating to energy conservation and alternative energy, eco-friendly materials and products and high-technology businesses.
Benefits: Exemption of import duty on machinery, corporate income tax reductions, deductions in utility costs, additional depreciation allowance.
2) Existing projects that invest to promote energy conservation, alternative energy utilization, or reducing environmental impacts.
Benefit: Import duty exemption on machinery and corporate income tax reductions.
3) Existing projects that make new investments to upgrade technology and improve production efficiency for the manufacture of new products.
Benefit: Import duty exemptions on machinery and corporate income tax reductions.
4) Existing projects that make investments to solve environmental problems in their projects applicable to oil refineries, natural gas separation, power generation, chemicals and petrochemicals, and minerals and base metals
Benefit: Import duty exemption on machinery and corporate income tax deductions.
The incentives are applicable for all applications made until 31 December 2013 to the Office of Board of Investment.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.