Thailand’s BOI Introduces New COVID-19 Economic Stimulus Measures

January 8, 2021

Thailand’s BOI Introduces New COVID-19 Economic Stimulus Measures

At a meeting on December 21, 2020, the Thai Board of Investment (BOI) approved a series of stimulus packages aimed at encouraging local and foreign investment, as the government seeks to boost Thailand’s economic recovery from the COVID-19 pandemic. The additional investment incentives, which will be promoted by the BOI in the upcoming year, include a number of sector- and project-specific stimulus measures.

Additional Tax Incentives for Large-Scale Projects

Projects in target industries with investment of at least THB 1 billion (approx. USD 33 million) over a 12-month period, starting from the issuance of the BOI promotion certificate, will be entitled to an additional 50% corporate income tax (CIT) deduction for a period of five years, calculated on top of the standard 5–8 year CIT exemptions offered under the normal BOI tax-incentive scheme. To obtain this special tax incentive, eligible projects may apply to the BOI from January 4 to December 30, 2021.

Stimulus Package for Digital Economy and Software Industry

Projects that support digital technology adoption, such as software integration, artificial intelligence, machine learning, or big data analytics, may benefit from 50% CIT exemptions on profits generated from their existing BOI projects for an additional three years. Applications for the exemption must be submitted by the end of 2022.

Application Deadline Extensions for Special Economic Zones and Five Southern Provinces

Measures relating to special economic zones cover more than 300 investment promotion categories, with both tax and non-tax incentives, including an additional tax incentive for target industries such as textiles, agriculture, home furniture, jewelry, and others. These incentives are available to projects located in the border areas of Thailand (i.e., the 10 special economic zones in the provinces of Chiang Rai, Kanchanaburi, Mukdahan, Nakhon Phanom, Narathiwat, Nong Khai, Sa Kaeo, Songkhla, Tak, and Trat), with the BOI accepting applications for these incentives until the end of 2022.

The BOI has also extended investment project deadlines for five southern provinces (Narathiwat, Pattani, Satun, Songkhla, and Yala) by an additional two years, again up to the end of 2022.

New Special Economic Zone for the Genomics Industry

Genomics technology, which enables advancements such as embryo examination during in-vitro fertilization (IVF), precise cancer detection, and development of innovative medicines, vaccines, and biological products, is targeted by Thailand as a growth industry worth approximately THB 70 billion (USD 2.35 billion) per year. The BOI has thus granted the Genomics Thailand project, located at Burapha University in the Eastern Economic Corridor (EEC), equivalent status to other special EEC zones, including the EEC of Innovation, Digital Park Thailand, and the Energy Efficiency & Conservation Authority. Investors in this new genomics economic zone will be entitled to the same additional BOI tax incentives as other EEC investment projects.

Related Professionals

Natthanit Mallikamal

Thailand

+66 2056 5555

Email

Supasit Saypan

Thailand

+66 2056 5994

Email

Atthachai Homhuan

Director, Regulatory Affairs

Thailand

+66 2056 5610

Email

RELATED INSIGHTS

August 22, 2024

Landmark Fine Imposed under Thailand’s Personal Data Protection Act

The Personal Data Protection Committee (PDPC) of Thailand’s Ministry of Digital Economy and Society (MDES) has announced the first administrative fine under the Personal Data Protection Act B.E. 2562 (2019) (PDPA). A major private company was fined THB 7 million for noncompliance with specific PDPA requirements, resulting in the unauthorized disclosure of personal data to a call center gang (phone scam fraudsters). Key Findings of Noncompliance The PDPC determined that there were three key violations of specific requirements of the PDPA: Failure to appoint a data protection officer (DPO): Despite processing personal data for over 100,000 individuals as part of its core operations, the company did not appoint a DPO. Inadequate security measures: The company lacked the required security measures, leading to a data breach involving a call center gang, causing widespread damage. Delayed data breach notification: The company did not notify authorities of the data breach within the required timeframe and failed to address the breach promptly, making it impossible to remedy the situation. In addition to the monetary fine, the PDPC, along with the PDPA’s Expert Committee, issued a corrective order requiring the company to undertake the following actions and notify the Office of the PDPC of the relevant correction measures within seven days of receiving the order: Implement up-to-date security measures: The company must improve its current security measures to prevent future breaches and ensure that the security measures are up-to-date with changing technologies. Raise awareness of personnel: The company must provide training to relevant personnel to ensure awareness of data compliance and protection practices. This significant administrative action establishes a precedent for addressing data breaches in both governmental and commercial sectors in Thailand. It also confirms the importance of PDPA compliance, particularly the need for robust security measures, timely breach notifications, and the appointment of

August 15, 2024

Thailand Seeks Feedback on Royal Decree on Digital Platforms

On August 9, 2024, Thailand’s Electronic Transactions Development Agency (ETDA) opened a period for public feedback regarding the 2022 Royal Decree on Digital Platforms and its subregulations. To collect this feedback, the ETDA has prepared a 44-question survey on specific attributes of the royal decree and its requirements, covering issues such as the definition of digital platform services (DPSs), types of services that are subject to notification requirements, information that must be submitted annually, and the royal decree’s extraterritorial scope. Business operators that fall within the scope of the royal decree and wish to provide feedback on its effectiveness should prepare and submit the survey online to the ETDA by the end of August 2024. Royal Decree on Digital Platforms Thailand’s Royal Decree on Digital Platforms was published in the Government Gazette on December 22, 2022. It defines a DPS as any service that facilitates or mediates transactions between users through a digital platform, such as e-commerce, food delivery, ride-hailing, online travel agency, online payment provider, or social media platform. The decree requires DPS operators to notify the ETDA before commencing operations, with some limited exemptions. The decree also empowers the ETDA to issue notifications (i.e., subregulations) and guidelines for implementing the decree and to monitor and enforce compliance by DPS operators. The ETDA may impose administrative sanctions, such as warnings, fines, service suspension, or revocation of notification, for any violation of the royal decree or the ETDA’s subregulations. In-scope DPS operators should take this opportunity to provide comments to the ETDA in order to voice their opinions on the practicality of the requirements and support the regulator in shaping the requirements of the royal decree and its subregulations. For more information on this initiative from the ETDA, or on any aspect related to the Royal Decree on Digital

August 8, 2024

ICLG: Pharmaceutical Advertising 2024—Thailand Chapter

Tilleke & Gibbins has contributed the Thailand chapter to the 2024 edition of Pharmaceutical Advertising from the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This detailed guide offers an in-depth examination of pharmaceutical advertising laws and regulations in multiple jurisdictions around the globe. Each chapter of the guide, structured in a Q&A format, is organized into comprehensive sections covering various aspects of pharmaceutical advertising, including: General rules and codes of practice governing pharmaceutical advertising Required arrangements for ensuring compliance with advertising regulations Procedures for obtaining advertising approvals from regulatory authorities Penalties for non-compliance with advertising rules Guidelines for providing information prior to product authorization Requirements for advertisements directed at healthcare professionals Restrictions on the content of pharmaceutical advertisements The complete Thailand chapter is available as a PDF below. The Thailand chapter—and the full Pharmaceutical Advertising guide—are also freely available on the ICLG website.

August 8, 2024

Thailand Updates Food Labeling Requirements

On July 19, 2024, Thailand’s Ministry of Public Health Notification No. 450 B.E.2567 (2024) came into effect after being published in the Government Gazette the day before. The notification introduces significant updates to the labeling requirements for prepackaged foods. This new regulation consolidates and updates Thailand’s rules for food labeling by repealing and replacing several previous notifications. The notification’s key changes and their implications for food businesses are identified below. 1. Clarified “Best Before” Definition The notification aligns the definition of “best before” with Codex standards. It now refers to the date marking the end of the period during which the food maintains its best quality under stated storage conditions. After this date, food quality may change, and the product cannot be marketed. 2. Updated Labeling Exceptions Certain foods are exempt from labeling requirements, with the latest list including: Foods sold directly to consumers by manufacturers who can provide product information. Unprocessed foods. Some fresh foods not sold directly to consumers. Prepackaged foods produced and sold for immediate consumption in food service settings. However, any of these exempt foods that have received food serial numbers must still have labels that comply with the notification. 3. Expiration Date and Best-Before Date Display The notification provides clearer language for displaying the expiration date and best-before date. If specific wording is required by other notifications, it must be followed. English equivalents are now permitted alongside Thai text. 4. Warning Displays Multiple applicable warnings can now be consolidated and displayed together, provided the complete message is included as specified. 5. Claims about Substances or Ingredients New guidelines have been established for making claims about food additives and ingredients. Claims should be factual, not deceptive, and provably not false. 6. Label Placement and Design Labels must be permanently affixed, proportionate to the packaging, and

You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

Industries

Practices

January 8, 2021