Thailand: BOI's updated comprehensive relocation program

In brief

Following our recent newsletter regarding the new investment promotion measures issued by the Thailand Board of Investment (BOI), this newsletter focuses on the privileges granted to businesses relocating their integrated operations (i.e., manufacturing facilities and regional headquarters/R&D centers) to Thailand.


Contents

In more detail

The BOI issued the Announcement of the Board of Investment No. 3/2567 on Investment Promotion Measure for Comprehensive Relocation Program (on 7 February 2024) to attract and promote the integrated relocation of manufacturing facilities, regional headquarters and R&D centers to Thailand.

The BOI offers additional tax and non-tax incentives to investments in new manufacturing projects and existing manufacturing projects for applicants who also plan to establish a regional headquarters (e.g., international business center) and/or an R&D center in Thailand.

To qualify for additional incentives under this scheme, the applicant must (i) plan to invest in a new manufacturing facility in Thailand or already have a promoted manufacturing facility in Thailand, and (ii) plan to establish a regional headquarters and/or an R&D center in Thailand.

Additional incentives to be granted include:

  • An additional three-year corporate income tax exemption period for income generated from manufacturing business for the establishment of a regional headquarters, not exceeding eight years in total.
  • An additional five-year corporate income tax exemption period for income generated from manufacturing business for the establishment of a regional headquarters and an R&D center, not exceeding eight years in total.
  • Non-tax incentives.

The application for the above incentives must be submitted to the BOI by the last working day of this year, 2024.

For more details, please contact our team at Baker McKenzie.


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