According to the government policy that aims to develop the country's economy and national security in order to increase competitiveness, increase employment, and create well-being for the people, and to solve the problem of foreign workers being smuggled into the country, the smuggling of illegal agricultural products from neighboring countries, and congestion at border checkpoints, as well as promoting important trade and investment to support the opening of the ASEAN Economic Community, a total of 10 special economic zones (SEZs) have been established, namely Tak, Sa Kaeo, Trat, Mukdahan, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat, which are considered a new economic mechanism used by many countries to create interest and attract investment from foreign investors. Those who are interested in investing in business in these zones may wonder what tools to promote investment will be implemented. This guide will make it easier to understand the various steps so that investors will not miss out on investing and expanding their business in Thailand.

Benefits and Investment Promotion Measures 

1. Tax measures

• Target activities: 8-year corporate income tax exemption and 50% reduction for another 5 years;
• General businesses are divided into:
  - Groups A1-A2: 50% reduction of corporate income tax for an additional 5 years;
  - Groups A3-A4 and B: additional 3-year corporate income tax exemption.
• Machinery import duty exemption;
• Exemption of import duty on raw materials produced for export;
• Double deduction of transportation, electricity, and water costs for a period of 10 years;
• 25% of the investment can be deducted from the installation or construction of facilities in addition to normal depreciation.

2. Non-tax measures

• Land ownership in industrial estates;
• Import foreign experts;
• Permission for unskilled foreign workers;
• Training for Thai and foreign workers.

Criteria for Project Permit Application

• Must be a project with the type of business being promoted at the time of application submission and ready to comply with the conditions specified by the type of business;
• Must have a minimum capital of at least 1 million baht (excluding the cost of land and working capital);
• Must have modern production methods;
• Must invest in new machines for the whole production line;
• Must have a debt to registered capital ratio of no more than 3:1 in
• Initiative projects: Extension projects are considered case-by-case.
• Must have an added value of not less than 20% of income, except agriculture, electronics, and parts businesses, and metal cutting businesses must have an added value of not less than 10% of income;
• Must have the measures to prevent and reduce the impact on the environment;
• In the case of SMEs, installments with minimum investment conditions of not less than 500,000 baht.

13 target businesses:

1. Agriculture, fisheries and related businesses
2. Ceramics
3. Textile industry, clothing and movie
4. Furniture manufacturing industry
5. Gem and jewelry industry
6. Manufacturing of medical devices
7. Automotive, machinery, and parts industry
8. Electrical appliances and electronics industry
9. Plastic production
10. Pharmaceutical production
11. Logistics business
12. Industrial estate or area
13. Tourism promotion business

10 additional targeted businesses:

1. Drying and silo business
2. Product and by-product or agricultural scrap business
3. Manufacturing of metal structures for construction or industry
4. Manufacturing of general publications
5. Manufacturing of animal feed or animal feed ingredients
6. Manufacturing of construction materials and manufacturing of prestressed concrete products for public utilities
7. Manufacturing of additives for body cleansing, such as medicated soap, shampoo, toothpaste, and cosmetics
8. Manufacturing of plastic products for consumer products, such as plastic containers
9. Manufacturing of articles from pulp or paper, such as paper boxes
10. Development of buildings for industrial factories and/or warehouses 
    
    Remarks: Targeted businesses 5-10 will receive the benefits only for those investing in Special Economic Zones (information as of November 2022).

Rental rates and fees for State Property in the Special Economic Zone are divided into 2 zones, as follows:

1. Trat, Sa Kaeo, Trat, and Songkhla

• Rental rate: Lease term of 50 years and may be extended for another 50 years, rental rate/rai/year (Increased by 15% every 3 years);
• Leasing fee: 5-year installments, payable in the 6th - 10th year.

2. Nakhon Phanom, Nong Khai, Mukdahan, and Kanchanaburi

• Rental rate: 50-year lease and may be extended for another 50 years, rental rate/rai/year (Increased by 9% every 3 years);
• Leasing fee: 5-year installments, payable in the 6th - 10th year.

       For investment in special economic zones as of November 2022, the value is 38,895.57 million baht, which has been promoted by the BOI for 73 projects, a total amount of 18,495 million baht, from a total of 106 projects applying for investment promotion, a total amount of 29,036 million baht.

Application for investment promotion

1. Channels for application submission:
       Via online application submission system: www.boi.go.th E-Investment system for requests under normal investment promotion policies;
Submit the documents at the office / E-Submission for measures or special policies;
One Start One Stop Investment Center: OSOS.

2. Supporting documents for submitting an application:

2.1 Two promotion application forms.
In case of submitting an application on behalf of an individual: The ID card or passport of the applicant is required. 

In the case of submitting an application on behalf of a juristic person:

• Copy of the latest juristic person certificate, not older than 6 months;
• Copy of the latest shareholder list (Bor.Or.Jor.5) or shareholding distribution report’
• Copy of the latest year's financial statements (if any).

In case of authorization:

• Power of Attorney affixed with stamp duty;
• Copy of ID card or passport of the authorized person with a certified true copy;
• ID card or passport of the authorized person.

Address: Office of the Board of Investment 
555 Vibhavadi Rangsit Road, Chatuchak District, Bangkok 10900 

Tel.: +66 2553 8111. Fax: +66 2553 8315 
Email: 
For more information: head@boi.go.th
Central Correspondence: saraban@boi.go.th

Source : Thailand Board of Investment 555
Tel : +66 2553 8111