THE BOARD of Investment yesterday approved a slew of tax measures to support investments for smart cities and smart logistics centres, according to its secretary-general Duangjai Asawachintachit.
The BOI’s tax support for the establishment of smart cities is divided into two categories.
First is designed for investments in telecom infrastructure, such as fibre optic network or WiFI network as well as open data platforms serving the smart cities.
The second is for those developing and providing at least one of the six smart solutions: smart mobility focusing on transportation system, smart living, smart energy and environment, smart governance focusing on state services, smart people focusing on promoting education, and smart economy focusing on promoting ease of doing business.
The investment in each of these two categories will enjoy a waiver of corporate income tax for eight years.
The BOI has also approved a revision of its measures for promoting science and technology investments as well as those for promoting investments in the Eastern Economic Corridor (EEC).
Under the revision, the investment in the Eastern Economic Corridor of Innovation (EECi) and Digital Park Thailand (EECd) will enjoy a maximum waiver of corporate income tax of 13 years, up from the present 10 years.
The promotional agency also gave the gree light to tax incentives for investments in residential projects for Thai and foreign labourers. Construction of the approved project must comply with the International Labour Union's related standard.
The projects can be located anywhere in Thailand. If a developer chooses to site the the project in a general location, it will be granted a waiver of corporate income tax for three years on income earned from residential rental fees.
If the project is located in any of the 10 special economic zones in one of the 10 border provinces, they will gain a tax break on corporate income tax for six years.
All developers must apply for these tax privileges within December 30, 2019.
The BOI has also added investment in “smart product distribution centre” as a new business eligible for tax support under the existing measures for investments in the EEC.
Operators of the centres will enjoy a tax break of corporate income tax for eight years on revenue from offering the service of distributing products to international markets.
The centres will have to recruit Thai scientists and technology experts such as Artificial Intelligence (AI) experts and data scientists and must operate in Thailand.
The board yesterday also granted tax incentives to six projects worth Bt37.726 billion, including an investment in a modern medicine production facility worth Bt4.5 billion in Rayong; the establishment of a centre for international product distribution, worth Bt2.840 billion, and the installation of an underground oil pipe from Saraburi to Khon Khaen at an investment cost of Bt9.5 billion.