new batch of incentives
aim to spur IT development by
Board of Investment (BoI) yesterday approved new incentives, including
an import tax exemption on machinery, faster work permits for skilled
foreign technicians, and cancellation of certain rigid start-up
requirements for software and e-commerce businesses.
requirement for local developers to create added value of at least 75%
to imported raw materials was also scrapped, said Chakramon
Phasukvanich, the BoI secretary-general. The 75% value-added
requirement was relatively tough for local developers, especially in
software and e-commerce businesses, he said.
The new rules were intended to promote more development of knowledge-based
industries in the country. The agency implemented its new investment-promotion
regime for software and e-commerce businesses on August 1, 2000, but
to date only 11 ventures, with investments totalling 664 million Baht,
have applied for privileges.
Under the current structure, companies specialising in e-commerce and
application services are eligible for tariff exemptions on imported
machinery. Projects in zones one (Greater Bangkok and environs) and
two (surrounding provinces) will be eligible for corporate tax
exemptions for five years.
Corporate tax exemptions will be granted for up to eight years for
projects located in the Software Park Thailand, Bangkok and in the
less-developed provinces that make up zone three.
E-commerce providers will have the same privileges, but to a lesser
degree, as determined by the BoI zoning system.
Bangkok Post, August 10, 2001
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