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BOI Package for 2021
January 2021
By Nat Boonjunwetvat, Natcha Saowapaklimkul

The Thailand Board of Investment (the “BOI”) has approved a series of measures with an aim to stimulate national economy in 2021, especially in respect of the target industries and the adoption of digital technologies. Key details of the approved scheme are set out below.

  1. Large-scale projects
    In order to stimulate economic recovery from the adverse impact of Covid-19, a large-scale investment has been endorsed to purposely accelerate investment in the target industries. Projects having a realised investment of at least Baht 1 billion within 12 months from issuance of the promotion certificate will be entitled to a deduction of 50% of corporate income tax (CIT) for five years after the end of the standard 5-8 years tax holiday. An application can be submitted from January 4 to the last business day of 2021.
  2. Extension for Special Economic Zones (SEZ)
    An application period for investment in 10 border provinces (namely Kanchanaburi, Chiang Rai, Trat, Tak, Nakhon Phanom, Narathiwat, Mukdahan, Songkhla, Sa Kaeo and Nong Khai) has been extended to the end of 2022. Apart from standard incentives applicable to over 300 SEZ promoted activities, 14 target businesses (e.g. agriculture, fisheries, textiles, garments, leather, furniture, jewellery, ornaments and etc.) are entitled to the 8-year CIT exemption and 50% CIT deduction for five years after the end of the tax holiday.
    Likewise, an application deadline has been extended to the end of 2022 for projects located in five southernmost provinces (namely Yala, Pattani, Narathiwat, Satun and Songkhla) which are eligible for the 8-year CIT exemption and 50% CIT deduction for five years after the end of the tax holiday.
  3. Digital technologies
    In order to leverage the adoption of digital technologies for business operation (e.g. software integration, artificial intelligence (AI), machine learning and big data analytics and etc.), any project with an investment amount of at least Baht 1 million (excluding the cost of land and working capital) or Baht 500,000 in case of SMEs will be entitled to the 3-year CIT exemption at 50% of the investment capital. An application can be submitted until the end of 2022.
  4. New SEZ for the Medical Genomics Projects
    Following approval on the establishment of the new special economic zone of medical genomics at Burapha University, medical genomics projects located at Burapha University (Bangsan) will enjoy the same additional tax incentives from the BOI as other EEC projects located at EECa, EECi, EECd, and EECmd areas.

This document is solely intended to provide an update on recent development in Thailand legislation and is not purported to provide a legal opinion, nor a legal advice to any person.

VAT on Foreign e-service
March 2021
With effect from 1 September 2021, Thailand will impose value-added tax (“VAT”) liability on foreign digital service providers with an aim to level the playing field between domestic and foreign online operators. Key takeaways from this notable change can be summarized as follows:
New Criteria on Interest Rates under the CCC
March 2021
On 9 March 2021, the Cabinet approved a Draft Amendment to the Thai Civil and Commercial Code (the “Draft Amendment”) which proposes changes in (i) an interest rate or default interest rate under the Thai Civil and Commercial Code where it is not expressedly determined in an agreement or in the laws and (ii) the method for default interest calculation.
Thailand Personal Data Protection
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