The Board of Investment (BOI) has taken steps to encourage the establishment of a highly skilled personnel development institute with a variety of benefits in order to develop the potential of industries that require highly knowledgeable and skilled personnel, particularly in the fields of science, technology, engineering, and mathematics (STEM). It will be divided into two sections: a company section and an educational or training institution section, with the benefits of each section differing.

Benefits for companies investing in educational institutes or training institutes

1. Receive corporate income tax exemption benefits for activities that have already been operating for 5 years (100% of the amount invested in establishing an educational institute or training institute);

2. Other non-tax rights and benefits.

Benefits for established educational institutions or training institutions

1. Will be eligible for duty exemption on machinery such as machinery, tools, and equipment used in teaching or training;                                                                                         2. Other non-tax rights and benefits.

Conditions

1. Performing activities that are eligible for investment promotion at the time of application (except educational institutes and training institutes that are already in operation);

 2. If the original business is a promoted project, the corporate income tax exemption period and credit limit must have expired before applying for this measure, or it is a non-exempt project;

3. Have a minimum investment capital of 1 million baht (excluding land costs and working capital) in establishing an educational institute or training institute.

        The BOI also makes additional announcements to encourage investment in specific industries. This applies to already operating activities, regardless of whether they are promoted or not, provided that they are the type of activities that the Board of Investment announces to be promoted at the time of applying for the promotion, with the exception of businesses that have a specific policy that will not grant the rights and benefits specified by the SEC Office.

        Existing Project refers to a project that is already in operation, regardless of whether it is promoted or not, where such activities must fall within the scope of investment promotion, with the exception of educational and training institutes.

        New Project refers to a new investment project that applies for promotion in the business of a vocational training center and/or an educational institution that is an existing juristic person or a new juristic person in which the original project’s owners hold all shares.

        Projects that have already been promoted may apply for promotion under this measure if the period of corporate income tax exemption or reduction has expired, or if the new project has not yet been completed and is ready for operation.

        An educational or training institute must be established in order to develop high-level human resources in the fields of science, technology, engineering, and mathematics (STEM).

        A minimum of one million baht must be invested in the establishment of an educational institute or training institute, excluding the cost of land and working capital.

Benefits 

Existing Project Exemption from corporate income tax for a period of five years, not to exceed the cost of land and working capital for establishing an educational institute or training institution, as well as non-tax rights and benefits;

New Projects  Exemption from import duty on machinery and non-tax privileges.

This policy is effective from 3 January 2023 onwards.