Government Incentives for Life Science Investments in Thailand
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1 Government Incentives for Life Science Investments in Thailand
2 Advantages of doing Life Science Business in Thailand 1. Strategic Location 2. Government Supports and Incentives
3 Ref. BOI
4 Government Incentives 1. Incentives from Board of Investment (BOI) 2. Incentives from Ministry of Science and Technology & Ministry of Finance
5 Incentives from BOI
6 BOI Policies Enhancing competitiveness and Investment Facilitation - Tax and non-tax incentives Business support service - Potential suppliers, subcontractors, joint-venture partners - Coordination Support for Investment Overseas
7 BOI s Investment Incentives Tax Incentives Non-Tax Incentives Exemption/Reduction of import duties on machinery Reduction of import duties for raw or essential materials Exemption of corporate income tax for up to 8 years Permit to bring skilled workers and experts (2 Y) Permit to own land Permit to take out or remit money abroad 50% Reduction of corporate income tax for up to 5 years Double deduction on utility cost Deductions for qualifying infrastructure cost
8 Activity-based Incentives 8-Year CIT Exemption (no ceiling) + Merit based incentives 8-Year CIT Exemption + Merit based incentives 5-Year CIT Exemption + Merit based incentives 3-Year CIT Exemption + Merit based incentives Merit on competitiveness enhancement & decentralization Ref. BOI
9 Activities that are classified as importance and benefits to the Country = A1 Incentives
10 Life Science Industries in A1 Medical Robots Telemedicine to Follow, Consult, Diagnose and Treat Remote Health Monitoring Devices Biopharmaceuticals & Biosimilars
11 7.12 Biotechnology The projects must use modern biotechnology approved by National Science and Technology Development Agency (NSTDA) or Thailand Center of Excellence for Life Sciences (TCELS).
12 Merit-based Incentives
13 1. Merit on Competitiveness Enhancement
14 2. Merit on Decentralization Projects located in 20 provinces with lowest per capita income Kalasin, Chaiyaphum, Nakhon Phanom, Nan, Bueng Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa Ket, Sakhon Nakhon, Sa Kaew, Sukhothai, Surin, Nong Bua Lamphu, Ubon Ratchatani and Amnatcharoen.
15 2. Merit on Decentralization
16 3. Merit on Industrial Area Development
17 Procedures to apply for BOI Promotion + Letter of Approval issued by TCELS or NSTDA
18
19 Procedure to apply for Letter of Approval from TCELS Application Submission Cover Letter Project proposal Company profile Document Verification Project Evaluation 15 working days Issuing Letter of Approval
20 Incentives from Ministry of Science and Technology & Ministry of Finance
21 R&D Tax Corporate Deduction 300% Tax Deduction for R&D and Innovation 60% of gross revenues not exceeding 50 million baht. + 9% of gross revenues exceeding 50 million baht, but not exceeding 200 million baht. + 6% of gross revenues exceeding 200 million baht. For a period of 5 years from 1 January 2015 to 31 December 2019.
22 Rules and Conditions (Royal Decree No.598) 1. The expenditure shall be paid to an Authorized R&D Organization; 2. The exception from income tax shall be in accordance with the rules and conditions of the Ministry of Finance; 3. The Thailand Corporate entity claiming the corporate tax deduction concessions under this Royal Decree shall not also claim tax rights or benefits for a BOI-promoted project under the investment promotion act, in whole or in part.
23 Tax Incentives for Venture Capital and Startups - 10 Years Tax Exemptions for Venture Capital (VC) investor that holds shares in a company operating one of the Targeted Industries. - VC investor must be a Thai-incorporated company with paid-up capital of at least 20 million baht and must register as a VC with the Securities and Exchange Commission by December 31, 2016.
24 Targeted Industries (5+5) 1. Next-Generation Automotive 2. Smart Electronics 3. Affluent, Medical & Wellness Tourism 4. Agriculture & Biotechnology 5. Food for the Future 1. Robotics 2. Aviation & Logistics 3. Biofuels & Bio chemicals 4. Digital 5. Medical Hub
25 For more information Please contact Department of Business Development and Corporate Relations Thailand Excellence Center for Life Sciences (TCELS) 22 nd FL., Mu Building, 69 Vibhavadi Rangsit Rd., Phayathai, Bangkok, Thailand Tel: ext Visit BOI website at
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