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APAC Tax Matters - March 2012 - Thailand - EY - China

APAC Tax Matters: March 2012Thailand

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Tax relief measures for BOI-promoted companies affected by flooding

In response to the flood crisis in Thailand, the Government has put into force various relief measures including the following which have been approved by the Board of Investment (BOI):

BOI-promoted companies Tax Privileges
Flood-affected companies whose corporate income tax exemption privileges have not expired 1. Corporate income tax (CIT) exemptions for companies whose:

1.1 CIT exemption is capped at the investment cost, the companies are granted:
  • 8 years CIT exemption
  • Increase in the CIT exemption cap by the amount equal to
    • 150% of investment cost plus unexpired CIT exemption amount outstanding, if the companies invest further in the same province; or
    • 100% of investment cost plus unexpired CIT exemption amount outstanding, if the companies relocate to other provinces
1.2 CIT exemption is not capped, the companies are granted:
  • The same privileges as 1.1); or
  • 3-year addition to the remaining CIT exemption period, which, together do not total more than 8 years

2. Exemption from import duty on imports of new or used machinery, provided date of manufacture is not more than 10 years

3. Machines used in other projects and machines purchased as replacements for flood- damaged items are allowed to be transferred and used under the BOI projects whereby additional production capacity can be increased equivalent to the actual capacity of the new/transferred machines
Industrial estate/ industry zone operators (both affected and unaffected by flooding) 8-year CIT exemption capped at 200% of investment cost (excluding land and working capital) only if:
  • The Industrial estate/ industry zone operators invest in construction of flood-prevention infrastructure
  • The infrastructure fee charged to business operators is reasonable and in accordance with the BOI regulations
Applications must be lodged with BOI office by 31 December 2012.


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