Special Economic Zone (SEZ).

         A special Economic Zone (SEZ), is a new border economic area that serves as an economic gateway connecting neighboring countries, spreading prosperity to the region, enhancing the income and quality of life of the people, as well as solving security problems.         

         SEZ areas were established in 10 provincial border areas adjacent to neighboring countries including Chiang Rai, Kanchanaburi, Narathiwat, Nong Khai, Nakhon Phanom, Trat, Songkhla, Tak, Sa Kaeo and Mukdahan by Special Economic Zone Development Policy Committee to attract foreign direct investment, increase national capability, diversify prosperity to the region 

         Privileges for investing in Special Economic Zones

         In case of promotion from BOI         
         In the case of business according to the announcement that is exempted from corporate income tax in addition to normal criteria for 3 years, but not more than 8 years in total

         If the business is in a group A1 or A2 that already receives an 8-year corporate income tax exemption, it will receive an additional 5-year reduction of 50 percent corporate income tax.

         In the case of targeted activities (14 industrial groups), a maximum of 8 years of corporate income tax exemption and an additional 5-year reduction of 50 percent of corporate income tax

         Relief according to SMEs conditions         
         The minimum investment is not less than 5 hundred thousand baht.

         Investors are allowed to bring used machinery into the country. can be used in projects applying for promotion, not exceeding 10 million baht.

         Other promotions beyond the BOI
         The Revenue Department reduced corporate income tax from 20% to 10% in 10 accounting periods.

         The Customs Department reduced the registered capital of the applicant's general bonded warehouse from 10 million baht to 5 million baht, reducing the registered capital of An applicant for establishing a duty-free zone from a registered capital of no less than 60 million baht to no less than 10 million baht.

        Other same benefits provided 
        1. Double deduction of transportation, electricity, and water supply costs for 10 years.

        2. Deduct the cost of installation or construction of facilities for 25 percent of the investment, in addition to deducting normal depreciation.

        3. Exemption of import duty on machinery

        4. Exemption of import duty on raw materials used in production for export

        5. Allow the use of unskilled foreign workers.

        6. Other benefits Non-taxation, including bringing foreign technicians to work land ownership (in case of dissolving or transferring business to the third party the land must sell within 1 year).

Source: Office of the National Economic and Social Development Council
Tel: +66 2-2804085