Thailand: Did you know the new Board of Investment measures for COVID-19 Impact Mitigation are available?

In the midst of the COVID-19 pandemic Phase III in Thailand, on September 6, 2021, the Board of Investment (BOI) launched new measures to mitigate COVID-19 impacts as well as support the development of local vaccines and medicines.

Firstly, in order to relieve the impacts of COVID-19, the BOI is making two of its investment requirements more flexible. One of the requirement relaxations is an extension period for obtaining international certifications. The deadline will be extended by six months for companies required to be certified by international standards such as ISO 9002 during the period of April 1 to December 31, 2021. In addition, during the same period, the BOI also allows companies to extend the temporary cessation of operations for more than 2 months.

Secondly, in an effort to support the development of local vaccines and medicines, the BOI launched a measure to allow companies that still enjoy corporate income tax (CIT) holiday to apply for additional tax incentives if they provide financial support to vaccine and/or medicine R&D projects run by public educational institutions, research organizations, and government agencies.

If this financial support is worth at least 1% of the total sales in the first three years, or at least THB200 million (US$7 million), then companies will receive not only an increase in the CIT exemption ceiling which is equal to the contribution amount but also an additional 1-3 years of CIT exemption. However, if the financial support amount does not reach the minimum threshold mentioned, companies can still receive an increase in their CIT exemption cap, but no additional years of CIT holiday.  

These COVID-19 impact mitigation measures will not only benefit companies that have been disrupted during the pandemic but also the nation as a whole due to the corporate financial contributions in support of developing local vaccines and medicines. This in turn will contribute greatly to Thai national COVID-19 recovery efforts.

What Can We Do?

For over 25 years, Tractus has been assisting companies pursue investment incentives not only in Thailand, but also across the rest of Asia and beyond. We have proven experience advising companies on their business strategy locally and internationally, helping them to identify and pursue their optimal potential incentive packages. Let us show you how we can support you to make your next endeavor a success.