| Criteria for Granting Tax
and Duty Privileges |
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Phuket province is the
province under BOI investment promotion Zone II which will receive the following tax
privileges:
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1. 50 percent reduction of import duty on machinery that is subject to import duty of not
less than 10 percent
2. Corporate income tax exemption for 3 years, increased to 5 years for projects located
within industrial estates or promoted industrial zones, provided that such a project with
capital investment of Baht 10 Million or more (excluding cost of land and working capital
obtains ISO 9000 or similar international standard certification within 2 years from its
start-up date, otherwise the corporate income tax exemption will be reduced by 1 year. |
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Policies and Criteria for
Investment Promotion |
| To relieve the fiscal burden
of the government and to respond to current and future economics situations, the Board of
Investment prescribes new policies as follows: |
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1. The efficiency and effectiveness of tax privileges given shall be enhanced. Privileges
shall be granted to projects that actually benefit the economy and good governance shall
be used for managing and supervising the application of tax and duty privileges. Promoted
entities shall report the operating results of their promoted projects to the Board of
Investment for review prior to the application of tax and duty privileges for that year.
2. Every promoted project that has investment capital of Baht 10 Million and upwards
(excluding land and working capital) must obtain ISO 9000 certification or similar
international certification. This is to pro-mote development of quality and production
standards in Thai industries and, thereby, to enhance the competitiveness of Thai industry
in the world market.
3. Previous conditions on exports and use of local material are repealed so that the
criteria for promotion will be in line with international trade and investment agreements.
4. Special promotion shall be given to regions or areas with low income and inadequate
investment facilities. Maximum tax and duty privileges shall be given to these given to
these regions or areas.
5. Importance is given to small and medium industries by applying a minimum level of
investment capital of Baht 1 Million (excluding cost of land and working capital) for
projects eligible for promotion.
6. Priority is given to activities in agriculture and agricultural products, projects
related to technological and human resource development, public utilities and
infrastructure, environmental protection and conservation and targeted industries. |
| Priority Activities |
| 1. The Board places priority
on promoting the following types of projects: |
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- Agriculture and agricultural products
- Direct involvement in technological and human resource development
- Public utilities and infrastructure
- Environmental protection and conservation
- Targeted industries |
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The Board shall announce the list of priority activities or industries. |
| 2. Such projects will be
entitled to the following privileges: |
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- Exemption of import duty on machinery regardless of location |
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- Corporate income tax exemption for eight years, regardless of location |
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- Other privileges entitled for each zone. |
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| Criteria for Project
Approval |
| In determining the
suitability of a project for which investment promotion privileges are requested, the
Board of Investment applies the following criteria: |
| 1. For a project with
investment capital (excluding cost of land and working capital) not exceeding Baht 500
Million, the following criteria are used: |
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- The value added is not less than 20 percent of sales revenue, except projects that
manufacture electronic products and parts or process agricultural produce, and projects
granted special approval by the Board;
- Ratio of liabilities to registered capital should not exceed 3 to 1 for a newly
established project. Expansion projects shall be considered on a case by case basis;
- Modern production processes and new machinery are used. In cases where old machinery
will be used, its efficiency must be certified by reliable institutions and the
Board’s approval must be obtained;
- Adequate environmental protection systems are installed. For projects with a potential
environmental threat, the Bard shall prescribe special conditions on both the location of
the project and the manner of pollution treatment. |
| 2.For a project with
investment capital (excluding cost of land and working capital exceeding Baht 500 Million,
criteria under 1. shall be used and feasibility study of the project, as prescribed by the
Board, must be submitted. |
| 3. For a concession project
or privatization of a state enterprise project, the criteria shall be based on the
Cabinet’s decision dated 25 May 1998, as follows: |
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-Projects of state enterprises shall not be granted promotion; |
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-For a Build Transfer Operate or Build Operate Transfer concession project by the private
sector, the state agency that owns the project must submit its project to the Board for
consideration prior to any invitation to bid, and bidders shall be informed of any
promotional privilege entitled to them, prior to the bidding. In principle, the Board will
not consider a project where the private sector pays for a concession, unless such payment
is deemed to represent a reasonable investment for the state; |
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-For a Build Own Operate project, including a lease by the private sector or rental
payment to the state, normal criteria are used; |
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Development Vision Under 5
Years Plan (2002-2006)
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- Conserve the beautiful
natural resources, as well as historical and cultural sites for the so called name,
“Pearl of Andaman”
- Maintain outstanding points on tourism with all set of more convenient infrastructure
under international standard, together with faster and safer transport, with more options
to the service users
- Be the center of information technology development in the upper southern region, as
well as the information/knowledge center on computer business, and a software production
site in the country
- Maintain modern, flexible, and transparent administration and management which could be
concisely followed-up and investigated under the co-system with international communities
- Create strong development cooperation among the public and community for better living
conditions under good environment, stable jobs/careers, and life and property security, as
well as maintain its long-term social symbol on culture and traditions
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| Development Strategies |
| The main duties for the
development according to above visions include: |
1.Administration
and Management of Natural resources, economic, and infrastructure
2.Human resource and social development |
| However, the 5 strategies to
support these 2 duties are as follows : |
- Strategy I - Land
areas development together with keeping the balance between natural resources and
environment
- Strategy II - Adequate and effective infrastructure development for the quality and
service under standard
- Strategy III - Human resource and social development, by providing equal education
opportunities, under good quality of all levels
- Strategy IV - Information technology development to support provincial and tourism
development to promote the so called name “Pearl of Andaman”-
Strategy V - Effective administration and management under the participation and
cooperation from community and public networks in the development processes according to
the administration of various governmental units |
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