New Investment Promotion Conditions for SMEs in Thailand

It is done to approve more incentives for SMEs to cover more than a hundred business activities and increase corporate income tax exemption up to 200% to enhance SMEs’ competitiveness. Also, it identified a list of industries for the EECi and EECd.

The new investment promotion conditions are as follows;

More business activities and relaxed requirements and conditions:

1. Business activities that are eligible for investment incentives are expanded from 40 to more than 100 to provide opportunities for SMEs to look for investment promotions while a few conditions are relaxed for certain business activities.
2. Tax incentives: Attractive incentives are provided with basic and additional tax incentives.
   1. Activity-based incentives (Basic tax incentives): The CIT is increased from 100% to 200% for activities to obtain CIT exemption, which means that the amount of tax exemption on the capital investment will be doubled.
   2. Merit-based incentives (additional tax incentives): SMEs will be receiving tax exemption under two conditions;

• • • • SMEs that aim enhancing competitiveness such as advanced technology training, product and packaging design, IP licensing fees, and investment and expenses conditions will be relaxed;
      • SMEs situated in 20 provinces having the lowest per capita income:
      1. Activities eligible for 8-year CIT exemption will get an additional 50% CIT reduction (for 5 years);
      2. Activities eligible for CIT exemption will get an additional 3-year exemption;
    • Promoted SMEs are able to work with used machines available in Thailand, but with the maximum value that doesn’t exceed 10 million baht;

The Board of Investment has granted a list of targeted activities to be in EECi and EECd. Such activities will be eligible for a certain tax incentive under the EEC scheme.

To the present human resource development scheme with the research or educational institutes, including WiL (Work-integrated Learning), the board has granted a new scheme known as “Special Vocational Program in the EEC”. This project focuses on training and human resource development.

Under this scheme, the companies will work with educational institutes in designing courses and curriculums and recruiting new students. Supports such as financial help will be given to the students.