Page 37 - Introduction to Investment Laws in Thailand
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on encouraging economic development with an openness to all
international and national investments that can serve the idea on
sustainable development of Thailand. The research and development with
investment in innovation is the main target on foreign direct investment.
The current government policy keeps attracting foreign direct investment
(FDI) for industries and businesses in Thailand. According to the Board of
Investment of Thailand (BOI), the government sets a policy to support FDI
in Thailand by focusing on a strategic location, outstanding infrastructure
& ecosystems, and a supportive government.
Thailand has adopted specific legislation that supports and creates
competitive environments to ensure the country's sustainable growth. The
Competitiveness Enhancement for Target Industries Act B.E. 2560 (2017)
was passed to promote investment in R&D, advanced technology and
innovation. The Act exempts qualifying firms from corporate income tax
for up to 15 years. It establishes a matching fund of THB 10 billion to
invest in R&D, technology and innovation development jointly, and
human resource development in ten targeted industries ( e. g. Next-
Generation Automotive, Smart Electronics, Bio- Energy and Bio-
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chemicals). The Act also spells out benefits of;
"Section 23. Promoted individuals may be entitled to one
or more rights and benefits as follows:
(1) rights and benefits under the law on promotion of
investment, excluding rights and benefits as regards exemption
from or reduction of corporate income tax;
( 2) rights and benefits as regards exemption from
corporate income tax under section 24;
41 UNCTAD-Invesment hub, 2021, The Competitiveness Enhancement Act,
<https://investmentpolicy.unctad.org/investment-policy-
monitor/measures/3215/the-competitiveness-enhancement-act-came-into-force>
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