Criteria for Granting Tax and Duty Privileges as Investment Zones

Zone 1 – Approved projects located in Bangkok, Nakorn Pathom, Nonthaburi, Pathoum Thani, Samut Prakan and Samut Sakhon will be granted:
  1. Fifty percent reduction of import duties on machinery that is subject to import duties of not less than 10 percent.
  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, ISO 14000 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. Exemption of import duty on raw or essential materials used in the manufacturing of export products for one year.


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. 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. Corporate income tax exemption for three years, increased to seven years for projects located within industrial estates or promoted industrial zones*, provided that projects with capital investment of 10 million baht or more (excluding the cost of land and working capital) obtain ISO 9000, ISO 14000 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. Exemption on import duties on raw or essential materials used in the manufacturing of export products for one year.


Zone 3 – Approved projects located in the remaining 58 provinces will be granted:

  1. Exemption on import duties on machinery.
  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, ISO 14000 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. Exemption of import duty on raw or essential materials used in the manufacturing of export products for five years.
  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.
  5. Projects located within industrial estates or promoted industrial zones in 36 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, MaeHong 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** are granted tax and duty privileges under 1, 2, 3 and 4 above 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.
  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, Lamphun, Amnatcharoen, Ubon Ratchatani, and Udon Thani are granted tax and duty privileges under 1, 2, 3 and 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.

* Applications must be submitted by end of December 2014.
** Applications for projects in Laem Chabang Industrial Estate and industrial estates or promoted industrial zones in Rayong must be submitted by December 31, 2014.

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