Measure for Comprehensive Relocation Program

(Unofficial Translation)

Announcement of the Board of Investment

No. 13/2565

Measure for Comprehensive Relocation Program

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Subsequent to the Announcement of the Board of Investment No. 8/2565 dated December 8, 2022 regarding Policies and Criteria for Investment Promotion;

To encourage foreign investors in relocating integrated businesses, including manufacturing facilities, regional headquarters, and research and development centers, by virtue of Section 16, Section 18, and Section 31 of the Investment Promotion Act B.E. 2520 (1977), the Board of Investment hereby issues the following announcement:

1. New investment in manufacturing projects to apply for investment promotion.

Conditions

  1. Applications for investment promotion must be submitted by the last working day of 2023.
  2. Applications for investment promotion of manufacturing projects must be submitted together with applications for investment promotion of International Business Center (IBC) activities only, except activities that are not eligible for the incentives under specific policies as prescribed by the Office:
  3. The international Business Center (IBC) activity must have first revenue or start servicing within 3 years from the date of investment promotion certificate issuance. If the applicants fail to comply with the condition within the specified period, the corporate income tax exemption will be withdrawn for 3 years.
  4. Applicants must undertake the substantial functions of regional headquarters and/or R&D centers as approved by the Board.

Incentives

  1. Manufacturing project applying for investment promotion together with an International Business Center (IBC) is eligible for an additional 3 years corporate income tax exemption on the net profit from investment in the manufacturing activities. The tax incentive is granted in addition to the standard incentives based on activity criteria but must not exceed 8 years in total.
  2. Manufacturing project applying for investment promotion together with an International Business Center (IBC) and an R&D center establishment is eligible for an additional 5 years corporate income tax exemption on the net profit from investment in the manufacturing activities. The tax incentive is granted in addition to the standard incentives based on activity criteria but must not exceed 8 years in total.
  3. Non-tax incentives.

2. The existing Group A manufacturing projects that have been promoted.

Conditions

  1. Applications for this measure must be submitted within the last working day of 2023.
  2. Applicants must apply for investment promotion for an International Business Center (IBC), regardless of whether the existing manufacturing projects continue to generate revenues. The corporate income tax exemption incentives must remain of both time and amount limits on the submission date of the application for additional incentives.
  3. The International Business Center (IBC) must have first revenue or servicing within 3 years from the application submission date for a project amendment and not exceeding the time limit for corporate income tax exemption incentives by the standard criteria. If the project fails to comply with the condition, the corporate income tax exemption incentives will be withdrawn for 3 years.
  4. Applicants must undertake substantial functions of regional headquarters and/or R&D centers as approved by the Board.

Incentives

  1. Manufacturing project applying for investment promotion, together with an International Business Center (IBC) is eligible for an additional 3 years corporate income tax exemption on the net profit from investment in the manufacturing activities. The tax incentive is granted 3 in addition to the standard incentives based on activity criteria but must not exceed 8 years in total.
  2. Manufacturing project applying for investment promotion together with an International Business Center (IBC) activities and an R&D center establishment is eligible for an additional 5 years corporate income tax exemption on the net profit from investment in the manufacturing activities. The tax incentive is granted in addition to the standard incentives based on activity criteria but must not exceed 8 years in total.
  3. Non-tax incentives.

The announcement shall be effective from January 3, 2023, onward.

Announced on December 8, 2022.

General Prayut Chan-ocha

(Prayut Chan-o-cha)

Prime Minister

Chairman of the Board of Investment

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