3 April 2020
Global Tax Alert
EY Tax News Update: Global
Edition
EY’s Tax News Update: Global
Edition is a free, personalized email
subscription service that allows
you to receive EY Global Tax Alerts,
newsletters, events, and thought
leadership published across all areas
of tax. Access more information
about the tool and registration here.
Also available is our EY Global Tax
Alert Library on ey.com.
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
providing tax measures to promote investments in a Special Economic Zone2
(SEZ) and support personnel development for Industry 4.0.
Reduction of corporate income tax (CIT) rate for SEZ
• The Royal Decrees extended the deadline to register for a reduction of the
CIT rate from 20% to 10% for businesses based in an SEZ (SEZ operators) to
31 December 2020.
• After registration, SEZ operators are eligible for a 10% CIT rate on net profits
derived from the manufacture of products or provision of services used in the
SEZ, for 10 years or 10 consecutive accounting periods.
Tax benefits for supporting Industry 4.0 personnel development
• 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, Mukdahan, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom,
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, Bangkok

• Yupa Wichitkraisorn yupa.wichitkraisorn@th.ey.com
• Kamolrat Nuchitprasitchai kamolrat.nuchitprasitchai@th.ey.com

Ernst & Young LLP (United States), Thai Tax Desk, New York
• Chinumar Huk-han chinumar.huk-han1@ey.com

Ernst & Young LLP (United States), Asia Pacific Business Group, New York
• Chris Finnerty chris.finnerty1@ey.com
• Bee-Khun Yap bee-khun.yap@ey.com
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