The cabinet approved yesterday special incentives for seven economic zones in the government's flagship Eastern Economic Corridor (EEC), a move to strengthen Thailand's investment competitiveness.
According to deputy government spokeswoman Rachada Dhnadirek, the seven economic zones comprise the Eastern Economic Corridor for aviation (EECa); Eastern Economic Corridor for innovation (EECi); Eastern Economic Corridor for digital (EECd); Eastern Economic Corridor for the medical hub (EECmd); Eastern Economic Corridor of genomics (EECg); Eastern Economic Corridor of high-speed rail (EECh); and Digital and High Technology Centre, Ban Chang, Rayong.
Details of the incentives will be announced later and the EEC Office was assigned to prepare the details, she said.
Ms Rachada said the cabinet also allowed the EEC Office to offer privileges to investors in the seven zones on a case-by-case basis in order to make Thailand more enticing to investors.
The EECa is required to be a pilot project for which the EEC Office offers special incentives.
EEC secretary-general Kanit Sangsubhan said on Feb 20 the government approved establishing a new company to expedite the development of U-tapao airport.
The new company is expected to support the maintenance, repair and overhaul scheme that was delayed by the pandemic and the bankruptcy of Thai Airways International.
The new company, named the EEC Airport Asset Development Co, which is 100% owned by the EEC Office, will operate with capital of 50 million baht.
On Dec 20, 2021, the Board of Investment approved a number of measures, including an extension of the investment acceleration package and incentive package for the EEC, aiming to fuel the economic recovery this year.
As the EEC is considered Thailand's prime area for investment, particularly in targeted industries, the board extended the special incentive scheme for investment in the corridor to December from the end of last year.
Apart from the standard corporate income tax exemption for 5-8 years, project applications filed by the end of 2022 are eligible for an additional 50% corporate income tax reduction for five years if they realise investment of at least 1 billion baht within 12 months of the investment certificate issuance.
Investments in targeted industries are entitled to additional corporate income tax incentives if they are engaged in human resources development programmes such as cooperative education, work-integrated learning and dual education.
Applications for these additional incentives must be filed by the end of 2022.