G/SCM/N/220/THA  
G/SCM/N/253/THA  
 
11 July 2013  
(13-3682)  Page: 1/5  
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 notification, dated 8 July 2013, is be ing 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 2009 – 31 December 2012, 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/220/THA • G/SCM/N/253/THA 
 
- 2 - 
 
  TABLE OF CONTENTS 
 
I. INVESTMENT PROMOTIO N INCENTIVES .................................................................. 3  
1) Title of the subs idy programme .................................................................................. 3  
2) Period covered by th e notification ............................................................................... 3  
3) Policy objective and/or purpose of the subsidy .............................................................. 3  
4) Background and authorit y for the su bsidy .................................................................... 3  
5) Form of the subsidy .................................................................................................. 3  
6) To whom and how the su bsidy is provided ................................................................... 3  
II. INDUSTRIAL ESTATE AUTHORIT Y OF THAILAND (I-EA-T) ....................................... 5  
1) Title of the subs idy programme .................................................................................. 5  
2) Period covered by th e notification ............................................................................... 5  
3) Policy objective and/or purpose of the subsidy .............................................................. 5  
4) Background and authorit y for the su bsidy .................................................................... 5  
5) Form of the subsidy .................................................................................................. 5  
6) To whom and how the su bsidy is provided ................................................................... 5  
7) Amount of th e subsidy .............................................................................................. 5  
8) Duration of the subsidy and/or any ot her time limits a ttached to it .................................. 5  
9) Statistical data permitting an assessment of the trade effects of the subsidy ..................... 5  
 
 G/SCM/N/220/THA • G/SCM/N/253/THA 
 
- 3 - 
 
  I. INVESTMENT PROMOT ION INCENTIVES 
1) Title of the subsidy programme 
Investment Promotion Incentives. 
 
2) Period covered by the notification 
1 January  2009 – 30 June 2012.  
 
3) Policy objective and/or purpose of the subsidy 
Investment promotion incentives aim at promoting the establishment of industries and  the 
strengthening of technological capability in Thailand to accelerate the country's industrialization process and encourage regional development.  During recent years, investment incentives have 
been geared towards decentralization to address the on-going development disparities between 
the urban and rural areas in accordance with the Thai Government's policy theme of regional development. 
 
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. 
 
The new investment promotion policy, effective since 1 August 2000, has abolished the export and local content requirements to comply with WTO obligations. 
 
6) To whom and how the subsidy is provided 
General 
 
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. The Board of Investment has established 
the criteria in granting tax incentives, which are generally based on the location of the 
investments. The entire country is divided into 3 zones as follows:  
Zone 1: Bangkok and vicinities (Samut Prakan, Samut Sakhon,  Pathum Thani, 
Nonthaburi, and Nakhon Pathom); 
 
Zone 2: Samut Songkram, Ratchaburi, Kanchanaburi, Suphanburi, Ang Thong, 
Ayutthaya, Saraburi, Nakhon Nayok, Chachoengsao, Chonburi, Rayong 
and Phuket; 
 
Zone 3: The remaining 58 provinces (the least developed area of which per capita 
income is below 85% of the national average and less  developed infrastructure) All areas in Zone 3 provinces are designated as 
Investment Promotion Zones. 
 Zone 1 is granted the least incentives whereas Zone 3, the most disadvantaged and least developed area, is granted the maximum incentives. Since September 2002, most activities 
eligible for investment promotion may be located in any zone except certain activities that are 
required to be located in industrial estates or zones for environmental safety reasons.  G/SCM/N/220/THA • G/SCM/N/253/THA 
 
- 4 - 
 
  Factory Relocation 
 
In order to further encourage decentralization, the Board of Investment also provides incentives for the relocation of existing factories to other regions. The following criteria are applied: 
 
1. The operation must relocate from Zone 1 to Zone 2 or from Zone 1 or Zone 2 to 
Zone 3. 
 
2. The operation must relocate to an industrial estate or promoted industrial zone.  3. The existing operation must be closed down and the operation at the relocated 
location must start within 2 years after receiving the promotion certificate. 
 The following incentives are granted: 
 
 1. For relocation to Zone 2: Corporate income tax exemption for 7 years.
1 
 
2. For relocation to Zone 3: Corporate income tax exemption for 8 years1; 50% reduction 
of corporate income tax for 5 year after the aforementioned exemption period has 
ended; and double deduction from taxable income of water, electricity, and 
transportation costs for 10 years2; and deduction from net profit of 25% of cost of 
installation or construction of infrastructure facilities for 10 years starting from the 
date of first sales. 
 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 any time limit 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. 
                                               
1 Provided that such a project with capital investment of 10 million baht or more (excluding cost of land 
and working capital) obtain ISO 9000 or similar internatio nal standard within 2 years from start-up date of its 
new plant, otherwise the corporate income tax exemption will be  reduced by 1 year. 
 
2 Starting from the date of first re venue derived from promoted activity. G/SCM/N/220/THA • G/SCM/N/253/THA 
 
- 5 - 
 
  II. INDUSTRIAL ESTATE AUTHORIT Y OF THAILAND (I-EA-T) 
1) Title of the subsidy programme 
I-EA-T investment Privileges. 
 
2) Period covered by the notification 
1 January 2009 – 31 December 2012. 
 
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 area 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) Background and 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 exemptions 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 thereof which are 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 use 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 assessmen t of the trade effects of the subsidy 
Not applicable. 
 
__________