Services and public utilities

Pubic utilities and basic services
Providing public utilities and basic services is among the activities promoted by the Board of Investment and are eligible for A1, A2, A3, and A4 privileges, depending on which activity a project is involved in. These activities include the production of electricity, industrial water, container depots, cargo facilities, commercial airports, and digital infrastructure. The Thai government, through the Board, has provided incentives to investors seeking to participate in these activities as a way of driving capital into the development of public utilities. Conditions
  • The production of electricity through the use of garbage or refuse-derived materials are eligible for A1 privileges. This activity, however, must be approved by relevant government agencies such as the Ministry of Energy.
  • The production of electricity through the use of renewable energy such as solar energy, wind energy, and biomass are eligible for A2 privileges. As above, this activity must be approved by relevant government agencies such as the Ministry of Energy.
  • Producing electricity from other sources are eligible for A4 privileges. If a project providing electricity chooses to use coal, it must only use clean coal technology.
  • Providing tap or industrial water is eligible for A3 privileges.
  • Constructing container yards and depots are eligible for A3 privileges.
  • Developing facilities for loading or unloading cargo containers are eligible for A3 privileges.
  • The construction of commercial airports that facilitate passenger travel and logistics networks are eligible for A2 privileges.
  • Developing digital infrastructure, namely high-speed marine communication circuits that facilitate international travel, are eligible for A2 privileges. Projects engaged in this activity, however, must obtain a license from the Broadcasting Commission and the Office of the National Broadcasting and Telecommunications Commission prior to filing their application to the Board.
Pubic utilities and basic services
The construction and development of mass transit systems to transport both passengers and bulk goods are among the activities promoted by the Board of Investment. The Board distinguishes between rail transport, pipeline transport, maritime transportation services, and air transportation services. Depending on the activities they are involved in, projects can avail either A2, A3, or B1 privileges. Each are given different sets of incentives. Conditions
  • Rail transportation for the movement of passengers and bulk goods are eligible for A2 privileges. Projects, however, must be approved by relevant government agencies.
  • Pipeline transportation, with the exception of water pipelines, are eligible for B1 privileges.
  • Maritime transportation services for both passenger and cargo use are eligible for A2 privileges.
  • Air transportation services for both logistics purposes and passenger travel are eligible for A3 privileges. Planes used by projects must be no more than 14 years old in order to apply for Board of Investment privileges.
Pubic utilities and basic services
Providing logistic service centers, specifically domestic and/or international distribution centers, are among the principle activities promoted by the Board of Investment as a key area for investment and are therefore eligible for A3 or B1 privileges, depending on what activities projects are engaged in. In terms of categorization, the Board makes a distinction between domestic and international distribution centers. Conditions
  • Domestic distribution centers are eligible for B1 privileges. They are, however, not eligible for merit-based privileges.
  • International distribution centers are eligible for A3 privileges. They are also required to make a minimum investment of 100 mullion Baht and export goods to at least 5 countries.
  • Paid-up registered capital must be at least 10 million Baht.
  • Projects must be able to provide a goods storage facility that is controlled using a modern computerized system.
Pubic utilities and basic services
A Trade and Investment Support Office (TISO) refers to a collection of business activities deemed to beneficial to the Thai economy. Within this investment category, the Board of Investment promotes a number of services ranging from consultancy services to activities related to machinery. Due to the wide range of activities that fall under this category, it is often considered one of the most accessible by investors seeking to acquire privileges from the Board. However, while it is considered accessible, the Board has mandated several requirements that must be met in order for beneficiary projects to maintain their promoted status. Projects that fall under this category are eligible for B2 privileges. Applicable business activities
  • Monitoring or servicing associated enterprises including providing or leasing offices and/or factory buildings.
  • Advisory services regarding business operations such as accounting and legal advisors. This, however, excludes securities and foreign currency trading advisors.
  • Monitoring or servicing associated enterprises including providing or leasing offices and/or factory buildings.
  • Information services on good sourcing.
  • Engineering and technical services other than architecture and civil engineering services.
  • Training services related to machinery, engines, tools, and equipment.
  • Installation, maintenance, and repair of machinery, engines, tools, and equipment.
  • Calibration of machinery, engines, tools and equipment.
  • International business outsourcing where services may be provided through telecommunication, such as administrative services, accounting services, marketing, human resources, services, and data processing.
  • Importing machinery, engines, tools, and equipment for wholesale.
  • Wholesaling products manufactured in Thailand.
Conditions
  • Projects providing professional services such as accounting, law, and engineering firms must be licensed by relevant government agencies prior to applying with the Board.
  • Applicants must provide the Board with their scope of business and service processes.
  • Minimum capital required by the Board is at least 1 million Baht. However, projects are required to have an annual expenditure of at least 10 million Baht per year.
Pubic utilities and basic services
In its attempt to promote the development of industries around the country, the Thai government has made the development of real estate for industrial use among the promoted activities of the Board of investment. The Board lists several types of industrial estates which can be split into three primary sets of industrial estates: industrial estates, technology industrial estates, and smart industrial estates. These are broken down accordingly: Eligible for A1  privileges
 Activities Notes

Zones or estates for general industrial activities:

  • Food innovation industrial zones

Technology industrial zones:

  • Science and technology parks
  • Digital parks
  • Data centers
  • Innovation incubation centers

The production of the following parts must have either a parts-forming or assembly process that has been approved by the board:

  • Fuel pumps
  • Injection pumps
  • Injectors
  • Sun gears
  • Transfer cases
  • Torque converters
  • Carriers
  • Propeller shafts
  • Drive shaft
  • Universal joints
  • Differentials
  • Turbochargers
Eligible for A2  privileges
 Activities Notes

Smart industrial zones

  • Projects involving smart industrial zones must have at least 51% of its registered capital held by Thai shareholders.
  • Projects based in Bangkok or Samutprakan are not eligible for promotion.
  • Each of the following activities listed are subject to several conditions, many of which are determined on a case-by-case basis. This ranges from the industrial zone’s land area to the infrastructure within it. Please contact us for more information.
Eligible for A3  privileges
 Activities Notes

Zones or estates for general industrial activities:

  • Estates for general industrial activities
  • Gem and jewelry industrial zones
  • Logistics parks
  • Zones for motion picture production
  • Industrial estates for environmental protection
  • Industrial zones for rubber production
  • Industrial zones for aircraft or aerospace vehicle production

Technology industrial zones:

  • Laboratories
  • Projects involving zones or estates fir general industrial activities based in Bangkok or Samutprakan are not eligible for promotion.
  • Each of the following activities listed are subject to several conditions, many of which are determined on a case-by-case basis. This ranges from the industrial zone’s land area to the infrastructure within it. Please contact us for more information.
Pubic utilities and basic services
Research and development are among the key activities promoted by the Board of Investment as a significant driver in the Thai economy. In essence, the Board states that projects must conceptualize and deploy several types of research and development activities in order to qualify for promoted status. These include conducting basic theoretical research, applied research to meet commercial objectives, pilot development where concepts acquired from theoretical and applied research are put into practice, and testing the viability of the results acquired from the pilot development. The Board lists five main areas where this should be applied in, including:
  • Bio and medical industries
  • Advanced manufacturing industries
  • Basic and supporting industries
  • High value services
  • Creative and digital industries
Conditions
  • Projects are required to provide the Board with specific details of its research scope and development projects as well as information about its researchers, how many are involved, and their qualifications.
  • Projects located in science and technology parks will be eligible for an additional 50% reduction in corporate income tax for 5 years following the end of its corporate tax exemption period.
  • Projects must incur 1,500,000 Baht in annual expenses for salaries of R&D staff. If this is not possible, projects can also be eligible for promotion status if they invest at least 1 million Baht in investment capital which should not include the cost of land and working capital.
Pubic utilities and basic services
Activities to biotechnology are among the key activities promoted by the Board of Investment. These activities include:
  • Research and development for manufacturing and improving seeds, plants, animals, or microorganisms using biotechnology.
  • Research and development for biopharmaceuticals.
  • Research and development for diagnostic kits for health, agriculture, food, and the environment.
  • Research and development for bio molecules and bio-active substances using microorganisms, plant cells, and animal cells.
  • Manufacturing raw materials or essential materials for molecular biological research and development, experimentation, testing, quality control services, or production of biological substances.
  • Analysis of biological substances, synthesis services, quality control services, or product validation services.
Conditions
  • Projects located in science and technology parks will be eligible for an additional 50% reduction in corporate income tax for 5 years following the end of its corporate tax exemption period.
Pubic utilities and basic services
Activities pertaining to providing engineering designs are among the activities promoted by the Board of Investment which include solving existing mechanical or structural problems through the use of research and innovative solutions to improve processes. This activity revolves around consultancy services relevant to designing engineering solutions. Conditions
  • Projects located in science and technology parks will be eligible for an additional 50% reduction in corporate income tax for 5 years following the end of its corporate tax exemption period.
  • Projects must incur 1,500,000 Baht in annual expenses for salaries of staff. If this is not possible, projects can also be eligible for promotion status if they invest at least 1 million Baht in investment capital which should not include the cost of land and working capital.
Pubic utilities and basic services
In its effort to minimize waste and contribute towards environmental conservation, the Thai government has taken steps towards promoting recycling and reusing unwanted materials. Among these efforts is the promotion of projects involved in refurbishing unwanted goods into products or goods that can be used such as shopping bags or stationary paper. The Board lists two activities that are eligible for promotion each with different sets of privileges. Sorting and separating recycled materials are eligible for A3 privileges whereas sorting and separating that include processes where materials are refurbished are eligible for A2 privileges. Conditions
  • Projects engaged in these activities must be approved by relevant government agencies.
  • Projects must be located in an industrial estate or promoted industrial zone. Exceptions can be made on a case-by-case basis at the discretion of the Board.
  • Unwanted materials must only be sourced domestically.
  • The Board requires that the sorting and separating process should use modern technology and solutions.
Pubic utilities and basic services
As part of the Thai government’s efforts to reinvigorate Thailand’s economy, it is looking towards developing the marketability of Thailand’s workforce through human resource development, emphasizing on technical skills and scientific knowledge. Therefore, through the Board of Investment, the Thai government provides incentives to investors seeking to establish projects relevant to human resource development. The Board distinguishes between two activities: vocational training centers and high potential academies or institutions for higher education. Conditions
    Vocational training centers
    • Training centers must teach or train students in technical courses about specific fields. The training center’s syllabus will be subject the Board’s approval.
    • Training centers must acquire the right equipment, have an adequate training lab, and other necessary facilities.
    • Projects located in a promoted science and technology park will be eligible for an additional 50% corporate tax reduction from net profits for 5 years following the end of its corporate income tax period.
    High potential academies or institutions for higher education
    • These institutions must focus on education centering around science and technology.
    • Institutions must be located in the Eastern Economic Corridor or any other special economic zone that has been designated by the Cabinet as high-potential academies.
    • Rules and regulations as defined by the Board must be met.
    • Institutions with investment from foreign investors must be approved by the Commission for High-Potential Foreign Higher Education Institutions.
Pubic utilities and basic services
Providing support services for the production of motion pictures is among the Board of Investment’s promoted activities which spans rental services for movie production, film development, and sound recording services. These projects can serve documentaries, television programs, animation, and commercials. Conditions
  • Projects must possess the right equipment to facilitate the service they wish to provide.
  • Coordination services for foreign movie productions must coordinate with relevant government agencies for permits, location scouting, sourcing of staff and movie equipment.
Pubic utilities and basic services
Tourism is undoubtedly one of Thailand’s most prolific industries, having welcomed over 35 million travelers in 2017. Contributing between 9% to 18% of the Thai economy, the Thai government consistently launches initiatives to promote Thailand as a powerhouse in the global tourism industry not only for its natural and cultural sights, but also for its world-class infrastructure which allows for the facilitation of seminars and conferences. Having said this, projects engaged in activities that aim to promote tourism in the Kingdom are given privileges by the Board of Investment depending on the activity they are engaged in. These activities are broken down below:
  • Ferry services or boat tour services
  • Tour boat port services
  • Amusement parks
  • Thai cultural centers
  • Open zoos
  • Museums
  • Race tracks
  • Cable cars
  • Cruise terminals
  • Man-made attractions
Note:
  • Each of the following activities listed are subject to several conditions, many of which are determined on a case-by-case basis. This ranges from acquiring licenses to meeting minimum capital requirements. Please contact us for more information.
Pubic utilities and basic services
Tourism is undoubtedly one of Thailand’s most prolific industries, having welcomed over 35 million travelers in 2017. Contributing between 9% to 18% of the Thai economy, the Thai government consistently launches initiatives to promote Thailand as a powerhouse in the global tourism industry not only for its natural and cultural sights, but also for its world-class infrastructure which allows for the facilitation of seminars and conferences. Therefore, projects involved with activities that support tourism, namely hotels, convention halls, and exhibition centers, are promoted by the Board of Investment with privileges. The Board lists the following activities:
  • Hotels
  • Convention halls
  • Setting up international exhibition centers
  • Establishing health rehabilitation centers
Conditions
  • Hotels that are located in one of the 20 special investment promotion provinces are eligible for A4 privileges. Those in other provinces are eligible for B2 privileges but cannot avail merit-based incentives.
  • Convention halls are eligible for A3 privileges and are required to have an area of no less than 4,000 square meters. The project’s blueprint must be approved by the Board and is required to procure the necessary facilities and equipment.
  • International exhibition centers are eligible for A3 privileges and should have an area of no less than 25,000 square meters.
  • Health rehabilitations centers are eligible for B1 privileges but cannot avail merit-based incentives.
Pubic utilities and basic services
Thailand’s medical industry is among the country’s most significant industries with the Thai government aiming to make Thailand a major medical hub in Asia. Given the thriving industry, the medical sector is fertile ground for investments in new projects to provide both state-of-the-art medical centers that provide both modern medicine and Thai traditional medicine. Some of the factors that makes Thailand an attractive destination for investments into medical services are the incentives given by the Board of Investment to investors. The Board splits this into three main activities: traditional Thai medical public services, Specialty medical centers, and hospitals. Conditions
    Traditional Thai medical public services
    • Officers employed must possess professional qualifications in Thai traditional medicine.
    • The establishment must pass an evaluation by the Department of Thai Traditional and Alternative medicine.
    • Specialty medical centers
      • Investments should be made in areas where shortages apply, namely in issues pertaining to coronary artery disease, heart surgery, cancer-related issues, and kidney-related issues.
      • These establishments should have adequate human resource recruitment plans.
      • Projects must have tools and equipment that have been approved by the Board of Investment.
      • They must acquire permission from relevant agencies and operate in accordance with professional standards set by the Ministry of Public Health.
      • Hospitals
      • Projects that establish hospitals in areas in the 20 provinces with low per capita income or areas along the southern border provinces of Narathiwat, Pattani, Yala, Satun, and select places in Songkhla are eligible for promotion.
Pubic utilities and basic services
As part of its Thailand 4.0 initiative, the Thai government has introduced the smart cities scheme which aims to bring technological innovation to 10 zones in seven provinces. It aims to boost economic growth, mobility, and human resource development with an emphasis on science and technology. As a result, the Board of Investment gives privileges to projects which invest in initiatives that contribute to the development of these smart cities. Promoted activities in this realm include:
  • Providing communication infrastructure such as Fiber Optic cables and Public Wi-Fi.
  • Providing data storage and management systems.
  • Provide other services that assist with mobility, governance, and/or human resource development.
Conditions
  • If all smart system services are provided, projects are eligible for A2 privileges.
  • If only some services are provided, projects are eligible for A3 privileges.
  • Projects must have Thai shareholders who hold no less than 51% of its registered capital.
  • Projects must be approved by the Board or any relevant government agency participating in the smart cities initiative.
  • If a project is located in the Eastern Economic Corridor, it will be eligible for a 50% corporate income tax reduction for 5 years following the expiry of its income tax exemption.
  • Income that is subject to corporate income tax exemptions must include those derived from services provided in the areas developed by the use of smart systems.
Pubic utilities and basic services
As part of its Thailand 4.0 initiative, the Thai government has introduced the smart cities scheme which aims to bring technological innovation to 10 zones in seven provinces. It aims to boost economic growth, mobility, and human resource development with an emphasis on science and technology. As a result, the Board of Investment gives privileges to projects which invest in initiatives that contribute to the development of these smart cities. Projects engaged in these activities, therefore, must be involved in business activities that are in line with the goals of the smart city initiative which includes providing parts to facilitate the development of smart infrastructure or human resource development. Conditions
  • If all smart system services are provided, projects are eligible for A2 privileges.
  • If only some services are provided, projects are eligible for A3 privileges.
  • Projects must have Thai shareholders who hold no less than 51% of its registered capital.
  • Projects must be approved by the Board or any relevant government agency participating in the smart cities initiative.
  • If a project is located in the Eastern Economic Corridor, it will be eligible for a 50% corporate income tax reduction for 5 years following the expiry of its income tax exemption.
  • Income that is subject to corporate income tax exemptions must include those derived from services provided in the areas developed by the use of smart systems.
Pubic utilities and basic services
Providing logistic service centers, specifically domestic and/or international distribution centers that center around the use of smart systems, are among the principle activities promoted by the Board of Investment as a key area for investment and are therefore eligible for A2 privileges. Conditions
  • Projects must include a warehouse that uses advanced technology and computerized systems such as Automatic Storage and Retrieval System and Information Technology support systems.
  • Projects involved in this activity must make a minimum investment of at least 1 billion Baht, not including the cost of land and working capital.
  • The following requisites must be met within 3 years of receiving promoted status from the Board:
    • Data centers for data management must be established in Thailand
    • Thai personnel with a bachelor’s degree or above in fields related to science and technology must make up at least 20% of the project’s human resource.
    • Training programs, such as those for big data and data analytics, should be provided.
    • Research and development activities must be conducted in cooperation with educational or research institutions.
    • Eligible revenue for corporate income tax exemptions should only be derived from fees acquired from cross-border logistic services.
Pubic utilities and basic services
The Board of Investment defines an international business center as a company incorporated in Thailand with the purpose of providing services to its affiliates overseas. As part of the Thai government’s initiative to brand Thailand as an investment destination for international business centers, the Board provides B1 privileges to projects that engage in the following activities:
  • General corporate management, planning, or cooperative activities.
  • Procurement of raw materials.
  • Research and development for goods and services.
  • Technical support.
  • Marketing and sales promotion.
  • Human resource management and training.
  • Financial advisory.
  • Economic analyses and research.
  • Credit management.
  • International trade facilitation.
  • Other supporting services deemed eligible by the Revenue Department.
Conditions
  • Projects must have paid-up capital of no less than 10 million Baht.
  • Projects must employ at least 10 technically skilled staff in the IBC except in cases where it only provides financial management services where only 5 are required.
  • Projects are not eligible for import duty exemptions on raw materials used in the production of goods for export.
  • Projects are not eligible for additional merit-based privileges.