The initiative is taken to employ advanced IT systems to improve the quality of life. Also, the Board of Investment has agreed to promote high standard housing for the betterment of the life of workers and to extend the promotion period for investments in the ten Special Economic Zones to the end of 2020.
The BOI Secretary General, Ms. Duangji Asawachintachit, revealed that promotion measures approved by the board will have positive effects on the people and the country.
Smart City Promotion Incentives
The board approved investment promotion incentive schemes for developing the “Smart City” project. The city is designed with an aim to upgrade qualify of life in 6 platforms, including efficient transport (Smart Mobility), life security (Smart Living), efficient public services (Smart Governance), education and social equitability (Smart People), green energy, clean and safe environment (Smart Energy and Environment), and ease of doing business (Smart Economy).
The prime area of investment promotion for the city includes two major activities;
- Smart City Development: The Board of Investment offers incentives for investors planning to design Smart City Infrastructure Systems that includes telecommunication infrastructure as public Wi-Fi provision, Open Data Platform schemes, and fiber optics.
- Incentive scheme to support intelligent network developers. The scheme has been developed to benefit the IT system developers, creating, installing and providing at one of the 6 regions of targeted services in support of the Smart City system.
Investment projects under these two categories will be allowed 8-year of corporate income tax exemption.
Technology and Innovation
The Board of Investment approved incentive schemes for investments in both science and technology. Tax incentives will be given to technology development activities to attract more number of investments in the EEC. The incentives include;
- Up to 13-year CIT exemption for EECi projects and the Digital Park Thailand;
- Up to 12-year CIT exemption for projects in the Science and Technology Park outside the Eastern Economic Corridor;
Improvement in the Quality of Life
The board has initiated a new investment incentive category known as the international-standard housing project development for Thai and foreign workers. This type of housing projects must cater to the standards set by the ILO (International Labor Organization). Additionally, this scheme ensures that the workers have access to the international standard housing. Though this measure is applied to projects nationwide, the incentive schemes vary.
The housing projects in the 10 Special Economic Zones (SEZ) in the 10 border region will receive a 6-year CIT whereas those situated in other areas will be eligible for a 3-year CIT exemption. However, the applications must be submitted by 30th December 2019.
Also, the BOI board is likely to extend the SEZs investment promotion measure, covering 10 border provinces including, Mukdahan, Chiang Rai, Nakhon Panom, Narathiwas, Songklah, Sa Kaew, Trat, and Tak till 30th December 2020. This decisions aims to encourage more number of investments in the targeted provinces. It is believed that extension of the measure will raise confidence among investors, planning to develop areas and set-up business there.
