Opportunity Thailand Seminar
On February 15th, 2017, STLO Asia Limited had joined the mega seminar “Opportunity Thailand” held by Thailand Board of Investment at the Royal Jubilee Ballroom, Impact Challenger, Muang Thong Thani, Nonthaburi, Thailand.
The seminar was aimed to promote investment opportunities in Thailand and share with the global community the Thailand 4.0 model driven by new value-based economy. This seminar was honorary chaired by Prime Minister General Prayut Chan-o-cha, including speeches from Deputy Prime Minister Dr. Somkid Jatusripitak, Minister attached to the Prime Minister, Minister of Industry and discussion from special guests in the various business sectors, such as CP Group, Siam Cement Group, Airbus Group, Huawei Technologies, and Ajinomoto Co., Inc.
According to the Thailand 4.0 model, there are ten new target industries including automotive, smart electronics, agricultural and biotechnology, food processing, tourism, automation and robotics, aerospace, medical wellness, biofuels and biochemical, and digital technology that are identified as the new engines of growth to transform Thailand into a regional innovation hub through the use of creativity, advanced technology, science, research and development and human resource development.
In addition, Thailand is one of the most suitable investment destinations in connecting Asia to the world due to its strategic location in the heart of ASEAN. Therefore, the government of Thailand is supporting and developing the establishment of Special Economic Zones, especially the Eastern Economic Corridor (EEC) as a new growth hub with modern and efficient infrastructure for manufacturing, trading, export and logistics which covers 3 provinces including Rayong, Chonburi and Chachoengsao provinces, with an approximate area of 13,000 sq.km.
The government of Thailand has now attempted to legislate new three investment laws, consisting of (i) the revised Investment Promotion Act, (ii) the Competitiveness Enhancement Act, and (iii) the Eastern Economic Corridor Act, with special privileges and new incentives for qualified investment projects in order to drive and facilitate the new economic model efficiently. In addition, the government of Thailand is focusing on target industries with high technology, infrastructures and logistic development, and research and development and technology support services. Therefore, the government of Thailand’s missions are to (i) promote core technologies (Biotech, Nanotech, Advanced materials and Digital technology), (ii) promote R&D and technology transfer and human resource development, (iii) promote the localization of technology by creating the international consortiums in industrial technology between the public and private sectors, and (iv) attract talents from abroad.
Below are new basic key special incentives and privileges under the new three investment laws:
The revised Investment Promotion Act:
- Exemption of corporate income tax for 9-13 years period for the projects that use high technology or innovation, or the research and development activity.
- Import duties exemption for the imported goods or materials that utilize in a research and development project.
- Deduction up to 70% percent of the capital investment on net profit for 10 years.
- Permission to own land.
- Permission to employ and bring in foreign skilled workers or technicians or experts.
The Competitiveness Enhancement Act:
- Exemption of corporate income tax for up to 15 years for targeted industries that having new technologies and high-impact investments.
- Investment funds THB 10 Billion granting for investment projects engaging in research and development, innovation or human resource development.
- Other incentives are in accordance with the Investment Promotion Act.
The Eastern Economic Corridor Act:
- Exemption of corporate income tax for up to 15 years.
- Import duties exemption on machinery, the imported goods or raw materials for use in production for export or for research and development projects.
- 15 % personal income tax rate for talents or foreign executives or management or investor.
- Permission to own land.
- Long-term land lease for 50 years plus renewable for further 49 years upon approval.
In addition to above incentives, in order to promote research and development activities, support academic or research institutes, intellectual property licensing, advanced technology trainings, development of local suppliers, and product/packaging designs, the promoted activity is eligible for additional merit-based incentives (additional exemption of corporate income tax for 1-3 years).
This seminar was a significant event that sets the new environment of investment in Thailand for the year 2017 and onwards, and demonstrates that the government of Thailand is aware with the global uncertainty of the world economic power which is now shifting to Asia, and determination to move the country forward by reforming the economic structure and enhancing competitiveness through various policies to increase foreign direct investment and promoting Thailand as a regional trading and investment hub or the Gateway of ASEAN.
The seminar was aimed to promote investment opportunities in Thailand and share with the global community the Thailand 4.0 model driven by new value-based economy