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BoI approves new batch of incentives

Perks aim to spur IT development  by Chatrudee Theparat 

The 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.

The 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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