In recent months, and amid the COVID-19 pandemic, Thailand’s Board of Investment engineered various incentives to attract investment in the Eastern Economic Corridor (EEC), an economic zone straddling three provinces in the Eastern Seaboard of Thailand: Chacheongsao east of Bangkok, and Chonburi and Rayong further east of the capital. More recently, Thailand’s BOI has approved the extension of the new EEC packages, which should further stimulate economic activities and growth for the region.
Figure. EEC Investment Incentives still valid in 2022.
There are several eligibility conditions that businesses must meet to be entitled to these incentives. For projects focused on human resource development, businesses must:
✓ Invest in targeted activities (i.e., electronics design, research and development, engineering design, scientific laboratories, calibration services, and vocational training centres);
✓ Be located in the EEC; and
✓ Have human resources in S&T development.
For projects located in the Industrial Estate or Zones, businesses must invest in targeted activities and be located in the Industrial Estate or Zones.
For projects located in the promoted zones for specific industries, investments must be in targeted activities and located in promoted zones, including:
✓ The Eastern Airport City;
✓ Eastern Economic Corridor of Innovation;
✓ Digital Park Thailand;
✓ Thammasat Integrated Medical Innovation Center (Pattaya);
✓ Genomics Thailand.
Successful applicants will receive additional corporate income tax incentives if they are engaged in human resource development programs (i.e., cooperative education programs, work-integrated learning, etc.). The idea is to further develop the region, foster deep tech and the medical industry, cultivate human resources, promote inter-institutional cooperation, and help build Thailand as a leading economic pillar in the ASEAN region.
Applications for incentives must be filed by the end of 2022; however, for businesses located in the Eastern Airport City, Eastern Economic Corridor of Innovation, Digital Park Thailand, or Genomics Thailand, there are no set deadlines to submit applications. Companies in the Industrial Estate and promoted industrial parks will be eligible for additional tax benefits past 2022.