Thailand Targets To Become Innovation Hub In Asia

Business

It is not uncommon knowledge that Thailand company formation is hard most especially for foreigners. The Board of Investment is not fazed though as it partners with the government to create an ecosystem that will be able to provide support to the digital industry of Thailand. Positive results are already showing based on the latest report.

The improvement can be credited to the leading initiatives of the Thai government like Smart City movement and the Digital Part Thailand or EECD. In order to move forward the initiatives, hi-tech infrastructural establishments had to be constructed. This in turn led to the good things as business leaders and investors are presented with opportunities that are not heard of before.

The Board of Investment is still trying to come up with new investment programs while making positive changes to the present ones. The end goal is still the same which is to urge foreigners as well as investments from local market that is involved with the digital industry.

As a reward, investments from the digital industries that are considered to be high value will be given an exemption from corporate income tax. It can last up to eight years as long as all criteria are met.

Digital businesses that are surging in demand for investment incentives are cloud services, software development, innovation incubation centres and digital platform services. Last year, the BOI got 194 applications from investment projects that are from digital sector. The total worth of the projects is 13,162 million baht. Majority of them are into embedded software, enterprise software and digital content.

If the investment project happens to partner with an education institution, the exemption for CIT can be extended until 13 years. Maximum investment incentives will be given to projects that tackle digital parks, software development, cloud services, digital services, data centres, research and development, innovation incubation centres and services that are relevant to the list.

Applications can still be done by projects that are still in the process of Thailand company formation as long as the applications are all sent in by December 30 of 2019.