Thailand Plus Package extension anticipated to attract 6 billion baht investment in three years
The Revenue Department anticipates that the tax measures designed to support the relocation of foreign investors’ production bases will generate investment of approximately 6 billion baht within three years, according to Deputy Director-General Vinit Visessuvanapoom.
Visessuvanapoom explained that the cabinet has given its backing to an extension of the tax measures, also referred to as the Thailand Plus Package, which aims to encourage the transfer of production bases.
Initially due to expire in 2022, the Thailand Plus Package has been extended until December 31, 2025, with the department now awaiting the cabinet’s approval of a draft law.
The Center of Robotics Excellence projects that these tax measures will attract 2 billion baht per annum in foreign investment in the automation sector over the next three years, amounting to a total of 6 billion baht.
These tax incentives were initially launched between 2019 and 2020, drawing three foreign companies with a total investment value of 313 million baht. Subsequently, the programme was extended to encompass the years 2021–2022 and succeeded in securing 41 foreign firms with a collective investment value of 1.54 billion baht.
Visessuvanapoom has stated that the department acknowledges the benefits of relocating foreign investors’ production bases to Thailand, not only in terms of furthering the country’s industry but also in enhancing the skill sets of local workers.
The department put forth three draft royal decrees under the Revenue Code, all of which received approval from the cabinet. As a result, foreign companies are now able to make deductions on expenses incurred between 2023 and 2025. These include expenses related to investment in automated systems (deductible twice), the hiring of highly skilled personnel (deductible 1.5 times), and expenses for supporting the development of highly skilled staff (deductible 2.5 times), reports Bangkok Post.
