BOI at Your ServiceBOI at Your Service

• Corporate Income Tax Holidays up to 8 YearsCorporate Income Tax Holidays up to 8 Years

• Exemption and Reduction of Import Duties on Exemption and Reduction of Import Duties on Machinery and Raw MaterialsMachinery and Raw Materials

• 50% reduction of corporate income tax50% reduction of corporate income tax

• Double deduction of public utilities costsDouble deduction of public utilities costs

• Infrastructure tax allowanceInfrastructure tax allowance

BOI’s Basic Tax Incentives

BOI Fiscal IncentivesBOI Fiscal Incentives BOI OFFERS BOI OFFERS

corporate corporate income tax income tax exemptions of up exemptions of up to 8 yearsto 8 years

-depending on -depending on activity and activity and ZoneZone

Tax on Corporate ProfitsOrdinary Company 30%Small Co.paid up capital<5M baht

-net profit not over 1Mbaht 15%-Net profit over 1M>3M baht 25%-Net profit over 3M baht 30%Company listing on SET 30%

Regional Operating HQ 10%

Target IndustriesTarget Industries

1)1) New New WavesWaves

Bio-productsBio-products ElectronicsElectronics AutotronicsAutotronics

AgritronicsAgritronics

Bio-materials, Bio-fuel, Life-science

IC-design, HDD, Consumer Electronics

Electronic Control Units, GPS, Sensors

Inspection Equipment for Agricultural Products, Microchips, E-counter, Sensor, Real Time Operating System

3)3) Green Green IndustriesIndustries

Waste Treatment & Waste Treatment & RecoveryRecovery RecyclingRecycling

Eco-productsEco-products

Precious Materials from Electronics Parts

Electrical Appliances: Products/ Packaging

Electrical Appliances, Automotive Parts

2)2) Upgrading Upgrading IndustriesIndustries

Automotives PartsAutomotives Parts

Electrical AppliancesElectrical Appliances FoodFood Rubber ProductsRubber Products TextileTextile

Lighting Equipment/ Optical Parts, REM (Accessories)

High-quality Tires & Medical Gloves

Ready-to-Eat

Computerized Electrical Appliances

Technical/ Non-woven/ Home Textiles

Iron & Steel: Iron Smelting/ Galvanized SteelPetrochemical & Plastics: Aromatics & Olefin Chain (EPDN, PC, POM, ABS, MMA, Compound Plastics)

Basic Industries

BOI Basic BOI Basic Promotion Promotion PackagesPackages

• 3 Investment Promotion Zones to promote industrial decentralization

Zone: 1 2 3Incentives: Lower Higher Incentives

ZonesZones Sector Matrix:Incentives to strengthen

competitiveness

Strategic or Priority Industries

• Maximum incentives regardless of location

• Customized packagesZone-Based Incentives:

• Zone 1

• Zone 2

• Zone 3

% of First Three Years’ Sales Add. Income Tax Exemption, No cap

1% or at least 150 million baht 1 year

2% or at least 300 million baht 2 years3% or at least 450 million baht 3 years

Additional incentives for skills, technology, and innovation (Optional)

Investment and Expenditures on:•Research and development or design•Advanced technology training•Funding of educational and research institutes

Note: Corporate income tax holiday may not exceed eight years.

BOI’s Non-Tax IncentivesBOI’s Non-Tax Incentives

• Land ownership rights for foreign investorsLand ownership rights for foreign investors

• Permission to bring in foreign experts and Permission to bring in foreign experts and technicianstechnicians

• Long-term visa for foreign investors Long-term visa for foreign investors (One-Stop Service Center for Visas and Work (One-Stop Service Center for Visas and Work

Permits)Permits)

Local SourcingLocal SourcingBUILDBUILD

Promote and develop supporting industries Strengthen parts and component market Increase capability of Thai suppliers Assist suppliers to tailor parts and components

production to the needs of manufacturers Stimulate localization – induce manufacturers

to source domestically Attract foreign investment

ASEAN Supporting ASEAN Supporting Industry Database Industry Database (ASID)(ASID)

•Information and profiles of companies in supporting industries and manufacturers of parts and components in 10 ASEAN countries

•ASID can be easily accessed via the internet at www.asidnet.org

BUILD ProgramsBUILD Programs Vendors meets customers

Suppliers taken directly to assembly plants

VMC Road ShowHannover Fair, MIDEST, MTech

BUILD MarketplaceSuppliers exhibit at domestic trade shows

BUILD Sourcing ProgramLocal sourcing for domestic and global supply

chain

Subcon 2007Subcon 2007

300 component manufacturers to participate in Subcon Thailand 2007, held alongside Intermach ’07, South East Asia’s Premiere Machinery Exhibition

13

• Date and Time- 913May 2007 / 10.00 AM – 07.00 PM

(The exhibition is held during the same period as Intermach 2007)

• Venue BITEC International Conference and Exhibition

Center, Bangkok, Hall 105

• Exhibition Area6,000 square meters

Show ProfileShow Profile

BOI Office Frankfurt: Bethmannstr 58, 5.OG

60311 Frankfurt am Main

Tel: (49 69) 92 91 230

Fax: (49 69) 92 91 232

E-mail: fra@boi.go.th

Europe Desk : BOI HeadquartersBangkok, Thailand

Tel: (66) 2 537 8111 Email: marketing@boi.go.th

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