G/SCM/N/284/THA  
 
6 November 2015  
(15-5876)  Page: 1/4  
Committee on Subsidies and Countervailing Measures  Original: English  
 
 SUBSIDIES 
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES 
THAILAND  
The following communication, dated 3 November 2015,  is being circulated at the request of the 
Delegation of Thailand. 
 
_______________ 
 
 
Pursuant to Article XVI:1 of the GATT 1994, and Article 25 of the Agreement on Subsidies and Countervailing Measures (ASCM), Thailand would like to submit herewith our new and full 
notification, for the period covered since 1 January 2013 – 31 December 2014, in accordance with 
the above obligations.  
The notification process is intended, for the purposes of transparency, to clarify the operation of 
programmes or measures. In this regard, further to  Article 25.7 of the ASCM, the notification does 
not prejudge the legal status, nature or effect s of notified programmes or measures under the 
ASCM and GATT 1994. 
 
 G/SCM/N/284/THA 
 
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TABLE OF CONTENTS 
 
1   INVESTMENT PROM OTION INCENT IVES ...................................................................... 3  
2   INDUSTRIAL ESTATE AUTHORITY OF THAILAND (I-EA-T) ........................................... 4  
 
 
 G/SCM/N/284/THA 
 
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  1  INVESTMENT PROM OTION INCENTIVES 
1. Title of the subsidy programme  
 
Investment Promotion Incentives. 
 
2. Period covered by the notification 
 
1 January  2013 – 31 December 2014.  
 
3. Policy objective and/or purpose of the subsidy 
 
Due to significant changes in both domestic and international economic and investment landscape, 
the Broad of Investment deems it appropriate to revise the investment promotion policies and criteria to respond to the current and future situation to be in line with the direction of Thailand's 
development under the National Economic and Social Development Plan and the country's 
development policies for the agricultural, industrial and services sectors in order to enhance the country's competitiveness and achieve sustainable development in the long run. 
 
4. Background and authority for the subsidy 
 The legal basis of the investment promotion incentives is the Investment Promotion Act (1977) 
amended in 1991 and 2001. The responsible authorit y is the Office of the Board of Investment 
(BOI).  
5. Form of the subsidy 
 
Tax concessions such as exemption/reduction of corporate income tax, exemption/reduction of 
import duties on machinery, reduction of import duties on raw materials, and special deduction of 
certain expenditures.  6. To whom and how the subsidy is provided 
 A wide range of activities covering all sectors are eligible for investment promotion incentives. The scheme is not specific to any particular sector. Moreover, companies in every province in Thailand 
can have access to the investment promotion incentives. However the Board of Investment has 
established the criteria in granting tax incentives, which are generally based on the importance of activities and merits of projects. Additionally investment promotion zones
1 are specified as follows: 
 
o Twenty provinces with low per capita income: Kalasin, Chaiyaphum, Nakhon Phanom, Nan, 
Bueng Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa Ket, Sakhon Nakhon, Sa Kaew, Sukhotha i, Surin, Nong Bua Lamphu, Ubon Ratchatani 
and Amnatcharoen 
o Special economic development zones 
o Science and Technology Parks 
 
The following incentive are granted: 
1. Exemption of import duty for machinery. 
2. Exemption of import duty on raw or essential materials used in manufacturing export 
products for one year extendable. 
3. Three – eight year corporate income tax exemption. 4. Other non-tax incentives such as permission to own land, facilitation for visas and 
work permits for foreign experts. 
 
                                               
1 Additional incentives given to investment promot ion zones are three additional corporate income tax 
exemption; 50% reduction of corporate income tax on net profit for fi ve years after the corporate income tax 
exemption period expires; an d double deduction from taxable income of water, electricity, and transportation 
costs for ten years; and deduction from net profit of 25% of  cost of installation or co nstruction of infrastructure 
facilities for ten years starting from the date of first revenue. G/SCM/N/284/THA 
 
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  7. Amount of the subsidy 
 
There is no specific budget earmarked for investment promotion incentives. The information on the subsidy per unit therefore cannot be provided. No statistics on corporate income tax exemption 
and reduction are available.  
 8. Duration of the subsidy and/or anytime attached to it 
 The duration of the Investment Promotion Incentives programme is indeterminate. However, the incentives granted to each investment are subject to certain time limits.  
2  INDUSTRIAL ESTATE AUTHOR ITY OF THAILAND (I-EA-T) 
1.  Title of the subsidy programme 
 
I-EA-T investment Privileges. 
 2.  Period covered by the notification 
 1 January 2013 – 31 December 2014.  3.  Policy objective and/or purpose of the subsidy 
 I-EA-T Investment Privileges aim to promote the es tablishment of industrial plants and industrial 
related activities in privilege areas in industrial estates in Thailand to accelerate industrialization 
process of the country and create more value prod ucts. Meanwhile, the growth of industries is 
made in a harmony with environmental management  and quality of life in order to guarantee 
balanced development of economy, environment, and society. 
 
4.  Authority for the subsidy  
 The legal basis of the I-EA-T Investment Privileges is specified in Industrial Estate Authority of 
Thailand Act B.E. 1979 amended in 1991, 1996, and 2007. The authorized organization is I-EA-T. 
 The current I-EA-T Act (No. 4) B.E. 2007 was approved by the Parliament in 2007. 
 
5.  Form of the subsidy  
 
I-EA-T Investment Privileges cover the exemption of payment of surcharge under the law on 
promotion of investment, import duty, value added tax on machinery, equipment, tools and supplies, including the component there of which ar e essential for the production of goods, as the 
case may be, and on materials to be used for the construction, assembly or installation of factory 
or building and goods imported and taken into priv ilege areas by industrial operators and traders 
for used in the production of goods.  
6.  To whom and how the subsidy is provided  
 
Privileges are provided to the industrial operat ors who are permitted to engage in industrial 
operation in privilege areas in industrial estates. 
 7.  Amount of the subsidy 
 
No specific budget provided. 
 8.  Duration of the subsidy and/or any other time limits attached to it 
 Upon
 operation period. 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy 
 
Not applicable. 
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