23 June 2017
THAILAND: Body Care Items and Construction Materials Among Five New SEZ-Approved Categories
The production of five additional product categories within the country’s Special Economic Zones (SEZs) has been given government approval. The five approved categories are body care products; animal feed and ingredients; construction materials; plastic products for consumer use; and fibre products. Manufacturing activity related to these products, as well as to any required services related to the development of additional facilities, including office buildings and warehouses, will also qualify for the statutory SEZ incentives.
For all purposes related to SEZ development, the Board of Investment (BOI) has extended the definition of body care products to include cosmetics and the extent of construction materials to include ceramic tile roofs, floor tiles, and wall tiles. While the BOI has yet to specify the incentives that will be extended to these new areas of activity, at present all revenue generated from the manufacturing of an approved product within an SEZ facility, as well as from services rendered and used in an SEZ, typically qualify for a 10% reduced corporate income tax rate over a 10-year period.