FAQ - Industrial Estates and Industrial Zones
Industrial Estate Authority of Thailand (IEAT) devides two types of industrial estate zones.
1. General Industrial Zone: designated for industrial and service operations or other activities beneficial to or connected with industrial and service operations.
2. IEAT Free Zone: designated for industrial and commercial operations or other activities beneficial to or connected with industrial and commercial operations to achieve benefits in terms of the economy, state stability, public well-being, environmental management or other necessary purposes specified by the IEAT Board. Supplies taken into a Free Processing Zone are entitled to additional tax and fee privileges, in accordance with the appropriate legislation.
Free Zone: designated for industrial and commercial operations or other activities beneficial to or connected with industrial and commercial operations to achieve benefits in terms of the country economy and supplies taken into Free Zone are entitled to obtain tax and duty privileges in accordance with the appropriate legislation. Free Zone shall be set up both in industrial estates and industrial zones.
According to the BOI Incentives, there is Criteria for Granting Tax and Duty Privileges as Investment Zones, please access to
https://www.boi.go.th/upload/content/Announcementno1-2543_5bfe6b846c722.pdf
Criteria for Granting Tax and Duty Privileges as Investment Zones
1. Zone 1 - Approved projects located in Bangkok, Nakorn Pathom, Nonthaburi, Pathoum Thani, Samut Prakan, and Samut Sakhon will be granted:
1.1 Fifty percent reduction of import duties on machinery that is subject to import duties of not less than 10 percent.
1.2 Corporate income tax exemption for three years for projects located within industrial estates or promoted industrial zones, provided that such projects with capital investment of 10 million baht or more (excluding the cost of land and working capital) obtain ISO 9000 or similar international standard certification within two years of their start-up date, otherwise the corporate income tax exemption will be reduced by one year.
2. Zone 2 - Approved projects located in Kanchanaburi, Chachoengsao, Chon Buri, Nakhon Nayok, Ayutthaya, Phuket, Rayong, Ratchaburi, Samut Songkhram, Saraburi, Supanburi, and Ang Thong will be granted:1.3 Exemption of import duty on raw or essential materials used in the manufacturing of export products for one year
2.1 Fifty percent reduction of import duties on machinery that is subject to import duty of not less than 10 percent and exemption of import duty on machinery for projects located within industrial estates or promoted industrial zones.
2.2 Corporate income tax exemption for three years, increased to seven years for projects located within industrial estates or promoted industrial zones(1), provided that projects with capital investment of 10 million baht or more (excluding the cost of land and working capital) obtain ISO 9000 or similar international standard certification within two years of their start-up date, otherwise the corporate income tax exemption will be reduced by one year.
3. Zone 3 - Approved projects located in the remaining 58 provinces will be granted:.3 Exemption on import duties on raw or essential materials used in the manufacturing of export products for one year.
3.1 Exemption on import duties on machinery.
3.2 Corporate income tax exemption for eight years provided that projects with capital investment of 10 million baht or more (excluding the cost of land and working capital) obtain ISO 9000 or similar international standard certification within two years of its start-up date, otherwise the corporate income tax will be reduced by one year.
3.3 Exemption of import duty on raw or essential materials used in the manufacturing of export products for five years.
3.4 Deduction from net profit of 25 percent of the project’s infrastructure installation or construction costs in addition to normal depreciation, and such deduction can be made from the net profit of one or several years within 10 years from the date of first revenue derived from the promoted activity.
3.5 Projects located within industrial estates or promoted industrial zones in36 provinces including Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai, Trang, Trat, Tak, Nakhon Ratchsima, Nakhon Si Thammarat, Nakhon Sawan, Prachuab Khiri Khan, Prachin Buri, Phangnga, Phattalung, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai, Surat Thani, Uttaradit, and Uthai Thani, as well as Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province(2) are granted tax and duty privileges under 3.1, 3.2, 3.3, 3.4 and the additional privileges as follows:- Fifty percent reduction of corporate income tax of net profit derived from its investment for five years after the exemption period.- Double deduction for transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity.- Seventy-five percent import duty reduction of the normal rate on raw or essential materials used in manufacturing for domestic sales for five years. The Board will give approval for a period of a year. Similar raw or essential materials to the imports must not be available in the Kingdom in similar quality and quantity as necessary for the procurement. This incentive is not available to projects in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province.
3.6 Projects located in 22 provinces: Kalasin, Chaiyaphum, Nakhon Phanom, Narathiwat, Nan, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakhon Nakhon, Satun, Surin, Nong Khai, Nong Bua, Lamphu, Amnatcharoen, Ubon Ratchatani, and Udon Thani are granted tax and duty privileges under 3.1, 3.2, 3.3, 3.4 and the additional privileges as follows:- Fifty percent reduction of corporate income tax of net profit derived from the investment for five year after the exemption period.- Double deduction for transportation, electricity and water costs for 10 years from the date of first revenue derived from the promoted activity.- Seventy-five percent import duty reduction of the normal rate on raw or essential materials used in manufacturing for domestic sales for five years. The Board will give approval for the period of a year. Similar raw or essential materials to the imports will not be available in the Kingdom in similar quality and quantity as necessary for the procurement. This incentive is not available to projects in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province.