Incentives under the EEC Act B.E. 2561 (2018)

Under the Eastern Economic Corridor Act B.E. 2561 (2018),
investors in the EEC are eligible for the most competitive incentives
—particularly tax-related benefits—to attract long-term investment, ensure worthwhile returns, and support sustainable development in the region.

Maximum Tax Incentives under the EEC Act

Exemption from corporate income tax for net profits generated from approved business operations for 1 to 15 years, starting from the date revenue is first earned.
The exemption may also be granted as a percentage of paid-up capital, excluding land costs and working capital.

1) Reduction of corporate income tax by up to 50% of the normal rate for 1–10 years for investors who do not receive a CIT exemption.

2) Reduction of corporate income tax by up to 50% of the normal rate for 1–5 years after the CIT exemption period ends, applicable to investors who receive a CIT exemption of up to 8 years.

For investors who receive neither CIT exemption nor reduction, the Negotiation Committee may grant an additional deduction of 1–70% of actual investment capital (excluding normal depreciation) from net profits in any year or multiple years within 10 years from the date revenue is first earned.

Eligible expenses for transportation, electricity, and water supply may be deducted at twice the actual amount, for the period specified by the Negotiation Committee.

An additional deduction of 1–25% of the investment costs for facility construction or installation may be applied to net profits in any year or multiple years within 10 years, in addition to normal depreciation.

Dividends derived from operations that enjoy CIT exemption are not required to be included in taxable income throughout the exemption period. This also applies to dividends paid within 6 months after the exemption period ends.

Exemption from including goodwill, royalties, or other rights in taxable income for 5 years from the date revenue is first earned.

Exemption from import duties on machinery approved by the Negotiation Committee.

Exemption from import duties for items imported for research, development, and related testing, as approved by the Negotiation Committee.

Exemption from import duties for raw materials and essential inputs imported for the manufacture, mixing, or assembly of products for export, as stipulated by the Negotiation Committee.

Reduction of import duties on raw materials and essential inputs used in approved activities by up to 90% of the normal rate, for a period not exceeding one year per approval.

Exemption from import duties for goods brought into the Kingdom for re-export under conditions set by the Negotiation Committee.

Exemption from export duties on products or outputs manufactured or assembled by approved operators, under conditions and timelines prescribed by the Negotiation Committee.

Maximum Non-Tax Incentives under
the EEC Act

Investors may own land within Special Economic Promotion Zones for approved business operations, subject to limits determined by the Negotiation Committee.

Investors may own condominium units within the EEC for business operations or residential purposes, subject to limits prescribed by the Negotiation Committee.

Foreign specialists, executives, and experts—as well as their spouses and dependents—may enter and reside in Thailand for the duration and in the numbers approved by the Secretary General.

Foreign specialists, executives, and experts employed by approved operators within Special Economic Promotion Zones may work under the EEC Work Permit, issued and approved by the Secretary-General.

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