23 May 2019
THAILAND: Corporate Income Tax Cuts Reinstated for SEZ Investments in 10 Border Provinces
The Thai cabinet has reinstated a tax incentive scheme it hopes will boost investor interest and provide sufficient incentive to attract foreign direct investment in the country’s less-developed border provinces. The scheme, which cut the Corporate Income Tax (CIT) rate to 10% from the country’s statutory 20% rate, had expired on 31 December 2017. Businesses based in Special Economic Zones (SEZs) in 10 provinces will now benefit from the tax break retrospectively from 1 January 2018.
Existing and new companies have until 30 December 2020 to apply for the incentive scheme, which will run until 31 December 2027 and is expected to cost the state treasury an estimated 4 million baht (US$126,000) in tax revenue. The scheme is in line with the government’s aim of promoting regional trade with its fellow members in the ASEAN bloc via its border provinces, namely Tak, Sa Kaeo, Songkhla, Trat, Mukdahan, Chiang Rai, Kanchanaburi, Narathiwat, Nakhon Phanom and Nong Khai.