On 11 February 2020, the Thai Revenue Department made an announcement to launch a tax measure supporting investment in Special Economic Zone (SEZ). Corporate income tax rate for companies in the area will be reduced to 10% in order to spur investment and trade in such area. The key measures of the announcement are following:
Special tax rate
The Revenue Department is preparing to launch a tax measure for companies which have establishments in SEZ zone. The measure will be a special tax rate for companies by reducing the tax rate from 20% of net profit to 10% of net profit for 10 years or 10 consecutive accounting periods. The Revenue Department will allow companies in SEZ area to request for these tax benefits from now until 30th December 2020.
Additional tax benefits
The Revenue Department also prepares to launch tax measure for entrepreneurs in other areas, which is “Tax Measure for Supporting Personnel Development for Industry 4.0”. This measure will grant tax benefit to companies which donate properties (machine, equipment, tool or computer program which is connected to a machine for automatic system) to “Center for Supporting Personnel Development for Industry 4.0” which is established by public institution, private school (not including non-formal school) or private university. The expenses can be deducted up to 3 times (not exceeding net profit or 100 million baht). Also, donated property is granted Value Added Tax (VAT), Specific Business Tax and Stamp Duty exemption. Companies can start the donation of property from now until 31st December 2020.
