3 April 2020 Global Tax Alert

Thailand announces tax measures supporting investments in Special Economic Zones and Industry 4.0

The Thai Cabinet has approved two draft Royal Decrees (the Royal Decrees)1 2 EY Tax News Update: Global providing tax measures to promote investments in a Special Economic Zone (SEZ) and support personnel development for Industry 4.0. Edition EY’s Tax News Update: Global Reduction of corporate income tax (CIT) rate for SEZ Edition is a free, personalized email • The Royal Decrees extended the deadline to register for a reduction of the subscription service that allows CIT rate from 20% to 10% for businesses based in an SEZ (SEZ operators) to you to receive EY Global Tax Alerts, 31 December 2020. newsletters, events, and thought leadership published across all areas • After registration, SEZ operators are eligible for a 10% CIT rate on net profits of tax. Access more information derived from the manufacture of products or provision of services used in the about the tool and registration here. SEZ, for 10 years or 10 consecutive accounting periods.

Also available is our EY Global Tax Tax benefits for supporting Industry 4.0 personnel development Alert Library on ey.com. • The Royal Decrees provide a 300% tax deduction (subject to conditions3) for the cost of assets donated to an Industry 4.0 “center for personnel development.”4 The assets donated by the company will be exempt from value-added tax, specific tax and stamp duty. • The 300% tax deduction will be available for eligible donations made from 1 January 2020 to 31 December 2020. 2 Global Tax Alert

Endnotes 1. The decrees were approved on 11 February 2020. 2. SEZs are located in 10 provinces, i.e. Tak, Sa Kaeo, Trat, , Songkhla, Chiang Rai, Nong Khai, , Kanchanaburi, and Narathiwat. 3. The tax deduction claimed must not exceed 60%, 9% or 6% of annual revenue (depending on total annual revenue) and is capped at THB100 million (US$3 million), among other conditions. 4. A “center for personnel development” may be established by a public institution, private school (not including a non- formal school) or private university.

For additional information with respect to this Alert, please contact the following:

EY Corporate Services Limited, • Yupa Wichitkraisorn [email protected] • Kamolrat Nuchitprasitchai [email protected]

Ernst & Young LLP (United States), Thai Tax Desk, New York • Chinumar Huk-han [email protected]

Ernst & Young LLP (United States), Asia Pacific Business Group, New York • Chris Finnerty [email protected] • Bee-Khun Yap [email protected] EY | Assurance | Tax | Transactions | Advisory

About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

© 2020 EYGM Limited. All Rights Reserved.

EYG no. 001794-20Gbl

1508-1600216 NY ED None

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. ey.com