INVESTMENT PROMOTION ACT
B.E. 2520

Amended by

INVESTMENT PROMOTION ACT (NO. 2)
B.E. 2534
Amended by

INVESTMENT PROMOTION ACT (NO. 3)
B.E. 2544

January 2002

INVESTMENT PROMOTION ACT
B.E. 2520★

Amended by

INVESTMENT PROMOTION ACT (NO. 2)
B.E. 2534★★
Amended by

INVESTMENT PROMOTION ACT (NO. 3)
B.E. 2544★★★
----------------------------------His Majesty King Bhumibol Adulyadej is graciously pleased toproclaim that:
Whereas it is expedient to revise the law on promotion of
investment;
Be it, therefore, enacted by the King, by and with advice andconsent of the National Administrative Reform Assembly as follows:
2520”

Section 1. This Act is called the “Investment Promotion Act, B.E.

Section 2. This Act shall come into force as from the day following
the date of its publication in the Government Gazette.
Section 3. The following are hereby repealed:(1) Announcement of the Revolutionary Party No. 31 dated 29th
November, B.E. 2501; and(2) Announcement of the National Executive Council No. 227,
dated 18th October, B.E. 2515.
All other laws, rules, and regulations in so far as they deal withmatters governed by this Act. Or are contrary to, or inconsistent with theprovisions of this Act, shall be replaced by this Act.
Section 4. In this Act,
“Applicant” means one who applies for investment promotion
under this Act;★

P ublished in the Government Gazette Volume 94, P art 38, Special Issue,
dated May 4, B.E. 2520 (A.D. 1977)★★
P ublished in the Government Gazette Volume 108, P art 201, Special Issue,
dated November 21, B.E. 2534 (A.D. 1991)★★★
P ublished in Government Gazette Volume 118, P art 110 Kor., Decree Issue,
dated November 30, B.E. 2544 (A.D. 2001)2

“Promoted person” means one who is granted a promotion
certificate under this Act;
“Machinery” means the machinery which is essential for thepromoted activity and those which are essential for the construction of afactory, and includes component parts, equipment, tools, implements,
and pre-fabricated factory structures to be assembled as a factory;“Board” means the Board of Investment;“Member” means a member of the Board of Investment, andincludes the Chairman and the Vice Chairman of the Board of
Investment;“Advisor” means an advisor to the Board of Investment;“Secretary General” means the Secretary General of the Board of
Investment;“Office” means the Office of the Board of Investment;“Competent Office” means one who has been appointed by thePrime Minister for the execution of this Act.
Section 5. The Prime Minister shall have charge and control ofthe execution of this Act and shall have the power to appoint competent
officials for the execution of this Act.

Chapter 1
Board, Advisors and Competent Officials
Section 6. There shall be a Board of Investment consisting of thePrime Minister as Chairman, the Minister of Industry as Vice Chairman,
not more than ten other competent persons appointed by the Prime
Minister to act as members, and the Secretary General as member andsecretary to the Board, having the powers and duties under this Act.
The Prime Minister may appoint not more than five othercompetent persons to act as advisors.
years.

Section 7. A member or advisor shall hold office for term of two

In the case where a member or an advisor is appointed, either as
an addition or as a replacement, during the term of office of members oradvisors already appointed, the person so appointed shall hold office only
for the remaining term of his predecessor.
A member or advisor who vacates his Office may be reappointed.
Section 8. Apart from the expiration of term of office under
section 7 paragraph one, a member or advisor vacates his office upon:(1) death,(2) resignation,(3) dismissal by the Prime Minister,(4) being adjudged bankrupt,(5) being adjudged incompetent or quasi-incompetent, or(6) being imprisoned by a final judgement to imprisonment, except
for a petty offence or an offence committed by negligence.

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Whenever a member or advisor vacates his office under paragraphone, the Prime Minister may appoint any other person to fill the vacancy.
Section 9. The Chairman of the Board shall convene a Board
meeting.
In a meeting, the attendance of not less than one-half of total
number of members of the Board shall be required to constitute a
quorum.
The Chairman shall preside over the meeting. If the Chairman isabsent from the meeting or is unable to attend, the Vice Chairman shallpreside over the meeting. If the Vice Chairman is absent from the meetingor is unable to attend, the members present shall elect one of them topreside over the meeting.
A decision of the meeting shall be taken by a majority of votes.
Each member shall have one vote. In case of an equality of votes,
the person who presides over the meeting shall cast another vote as adeciding-vote.
Section 10. In the case where the Chairman is unable to perform
his duties, the Vice Chairman shall act on his behalf. If the Chairman
and the Vice Chairman are unable to perform their duties, the Secretary
General shall convene the meeting in order that a member may be electedto act on behalf of the Chairman.
Section 11. In the performance of duties under this Act, theBoard may authorise the Office to act on its behalf, appoint subcommittees to perform any assigned duties, or summon any person
concerned to give facts, explanations, advice or opinions.
The provisions of section 9 shall apply mutatis mutandis themeetings of the sub-committees.
Upon completion of the assigned duties under paragraph one, theOffice or the sub-committees, as the case may be, shall report to theBoard.
Section 12. Members, advisors and members of sub-committees
shall be entitled to receive such remuneration as may be prescribed by
the Council of Ministers.
Section 13. The Office shall be administered by the Secretary
General who shall be responsible for the administration of the office anddirectly under the Prime Minister. There shall be Deputy Secretary
General (s) and there may also be an Assistant Secretary General toassist the Secretary General in carrying out his duties.
The Secretary General, Deputy Secretary General (s) and Assistant
Secretary General shall be ordinary civil servants.
The Office shall have the following powers and duties:(1) to perform such functions as may be resolved or assigned to it
by the Board;4(2) to undertake works to publicise investment potentials andinduce investments in those activities which are important andbeneficial to economic and social development, and security of
the country;(3) to establish an Investment Services Centre to assist prospective
investors and investors in obtaining permissions and services
related to investment which include facilities and assistance toprospective investors in the implementation of investment
projects;(4) to appraise projects requesting promotion, supervise, control,and evaluate promoted investment projects;(5) to conduct studies and research in identifying investment
opportunities, prepare feasibility reports, and formulate an
investment promotion programme;(6) to study and compile data relating to investment on theKingdom;(7) to perform other duties in the furtherance of the objectives ofthis Act.
Section 14. A competent official shall have the power to enter thepremises of the applicant and of the promoted person during working
hours for inquiry of fact from any person on such premises or
examination of any document or thing relating to the activity in which
the promotion is being sought or has been granted, as may be necessary.
In the case where the competent official intends to enter thepremises, referred to in paragraph one, the applicant or the promoted
person shall, except in case of urgency, be notified in writing at areasonable time in advance.

Chapter 2
Applying for and Granting of Promotion
Section 16. The activities which are eligible for investment
promotion by the Board are those which are important and beneficial tothe economic and social development, and security of the country,
activities which involve production for export, activities which have highcontent of capital, labour or service or activities which utilise agricultural
produce or natural resources as raw materials, provided that in theopinion of the Board, they are non-existent in the Kingdom, or existent
but inadequate, or use out-of-date production processes.
The Board shall make an announcement designating the types andsizes of investment activity eligible for promotion and may stipulate there
in the conditions under which promotion is to be granted and may
amend or abolish those conditions at any time.
In the case where the Board is of the opinion that any activity
announced to be eligible for promotion under paragraph two no longer
requires to be promoted, it may announce a temporary or permanentcancellation of promotion for that activity.

5Section 17. A person who seeks to be a promoted person shall fileto the Office and application for promotion in accordance with the rules,
procedure and forms prescribed by the Secretary General, describing theinvestment project for which promotion is sought.
The promoted person shall be a company, a foundation or a cooperative established in accordance with the respective law.
Application for promotion prior to the formation of a company, afoundation, or a co-operative under paragraph two shall be made inaccordance with the rules, procedure and forms prescribed by the
Secretary General.
Section 18. The investment project to which the Board may grant
promotion shall be one which is economically and technologically sound.
Consideration will be given to:(1) the existing number of producers and production capacity in
the Kingdom and the size of production capacity to be createdunder promotion compared with demand estimates;(2) the prospect for which such activity will expand the market forthe products or commodities produced or assembled in theKingdom and will encourage the production or assembly in theKingdom;(3) the quantity and proportion of the resources available in theKingdom including the capital. Raw or essential materials andlabour or other services utilised;(4) the amount of foreign currency which may be saved or earned
for the Kingdom;(5) the suitability of the production or assembly processes;(6) other requirements which the Board deems necessary andappropriate.
Section 19. The investment project to which the Board may grant
promotion shall be one which incorporates appropriate measures for theprevention and control of harmful effects to the quality of the environment
in the interest of the common good of the general living of the public andfor the perpetuation of mankind and nature.
Section 20. In the case where the Board deems it appropriate to
grant promotion to any applicant, the Board may stipulate conditions in
the promotion certificate for the compliance by the promoted person in
one or more areas as follows:(1) amount and source of capital;(2) nationality and number of shareholders;(3) size of activity including the types of products, commodities orservices and the production or assembly processes, andcapacity thereof;(4) amount of local raw materials to be used;(5) nationality and number of workers, technicians and experts;(6) training and employment of manpower;

6

(7)

prevention and control of damaging elements to the quality ofthe environment;(8) period of time to commence the implementation of thepromoted project;(9) period of time to place orders for the purchase of machinery;(10) period of time to import machinery into the Kingdom;(11) period of time re-export the imported machinery after thetermination of their use;(12) extension of time limits under (8), (9), or (11);(13) date of commencement of operation;(14) report on implementation of the project and operation;(15) report on the performance of the training provided by theforeign technicians and experts to the Thai personnel;(16) requirements that the products or commodities produced,
assembled or exported conform to the standards prescribed
either by the Board or other government agencies;(17) distribution of products or commodities produced or
assembled, or services rendered;(18) export of products or commodities produced or assembled;(19) requirements that the cash, bank guarantee, the Thaigovernment securities or other securities deemed appropriateby the Board, be deposited with the Office for the purpose ofguaranteeing the compliance with the conditions stipulated by
the Board;(20) other matters relating to the provision of facilities to thecompetent official, granting, exercising or controlling of therights and benefits under this Act.
Section 21. When the Board has resolved to grant promotion toan applicant, the Office shall notify him in writing of the resolution of theBoard together with the conditions stipulated by the Board within fifteendays from the date of the resolution.
If the applicant accepts the promotion under paragraph one, heshall confirm in writing to the Office within one month from the date ofreceiving the notice.
In the case where there are suitable grounds, the Secretary Generalshall have the power to extend the period of time under paragraph twofor not more than three times and not longer than one month for eachtime.
Section 22. The applicant who has confirmed the acceptance ofpromotion under section 21 shall report to the Office the commencementof the project under promotion in accordance with the form andprocedure prescribed by the Secretary General within six months fromthe date of confirming the acceptance of promotion.
In the case where there are suitable grounds, the Secretary Generalshall have the power to extend the period of time referred to in paragraphone not more than three times and not more than four months each time,and shall report to the Board every time the extension is granted by him.

7

When the Secretary General is of the opinion that the applicant canproceed with the implementation of the promoted project, he shall issue a
promotion certificate to the applicant without delay.
Section 23. The promotion certificate shall be in the form
prescribed by the Board.
The Secretary General shall sign the promotion certificate.
Any amendment to the promotion certificate shall be made by aresolution of the Board. The Secretary General shall sign the amended
promotion certificate which shall be delivered to the promoted person
without delay.

Chapter 3
Rights and Benefits
Section 24. Subject to the law on immigration, only in so far as it
is not otherwise provided herein, the Board shall have the power to grant
permission to foreign nationals for entry into the Kingdom for the
purpose of studying investment opportunities or performing any other act
benefiting investment for such period of time to stay in the Kingdom as
the Board may deem appropriate.
An application for permission shall be in accordance with the rules,
procedure and forms prescribed by the Board. In granting permission,
the Board may stipulate such conditions as deemed appropriate.
Section 25. Subject to the law on immigration, only in so far as it
is not otherwise provided herein, a promoted person shall be grant
permission to bring into the Kingdom foreign nationals who are(1) skilled workers,(2) experts,(3) spouses and dependents of persons in (1) and (2) in such
numbers and for such periods of time as the Board may deem
appropriate even in excess of such quotas or period of time
permitted to stay in the Kingdom as prescribed by the law on
immigration.
Section 26. Subject to the law on working of foreign nationals,
only in so far as it is not otherwise provided herein, foreign nationals who
are granted permission under section 24 and foreign nationals who areskilled workers or experts and who are permitted to stay in the Kingdom
under section 25, shall be granted a work permit for a specific position
approved by the Board for the period of permitted stay in the Kingdom.
Section 27. A promoted person shall be permitted to own land inorder to carry on the promoted activity to such an extent as the Board
deems appropriate, even in excess of the permissible limit under otherlaws.
In the case where the promoted person who is a foreign national
under the Land Code dissolves his promoted activity or transfers it to8

another person, he shall dispose of the land he has been permitted toown within one year of the date of dissolution or transfer, or the Director
General of the Land Department shall have the power to dispose of it
under the Land Code.
Section 28. The promoted person shall be granted exemption
from payment of import duties on machinery as be approved by the
Board, providing that such machinery comparable in quality is not being
produced or assembled within the Kingdom in sufficient quantity to beacquired for use in such activity.
★

Section 29. When the Board is of the opinion that in granting
promotion to any activity or applicant, it would be in appropriate to grant
benefits under section 28, the Board may grant a reduction of only onehalf of the rate of import duties or not granting the exemption of importduties and/or business taxes on the machinery to such activity or
applicant and the ones that follow.
★★

Section 30. In the case where there are suitable grounds, theBoard may grant a promoted person a reduction of import duties notexceeding ninety percent of the normal rates imposed on raw or essential
materials which are imported into the Kingdom for the purpose of
producing, mixing, or assembling in the promoted activity, each time fora period not more than one year from the date prescribed by the Board,
provided that such raw or essential materials comparable in quality are
not being produced or originated within the Kingdom in sufficientquantity to be acquired for use in such activity.
The foregoing shall be in accordance with such kinds, quantities,
periods of time, conditions and procedure as shall be prescribed by the
Board.
★★★

Section 31. A promoted person shall be granted exemption ofjuristic person income tax on the net profit derived from the promoted
activity as prescribed by an announcement of the Board, of which theproportion to the investment capital excluding cost of land and working
capital shall be taken into consideration by the Board, for a period of not
more than eight years from the date income is first derived from suchactivity.
In the case where activities are of special importance and benefit to
the country as prescribed by an announcement of the Board, a promoted
person in such activities shall be granted exemption of juristic person
income tax on the net profit derived from the promoted activity for a★★★★

★

Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)
Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)★★★
Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)★★★★
Amended by Amendment Act (No. 3) B.E. 2544 (A.D. 2001)★★

9period as prescribed by the Board but not more than eight years from thedate income is first derived from such activity.
The income on which the computation of the net profit derived
from the activity referred to under either paragraph one or paragraph two
is to be based shall include income from the sale of such by-products
and semi-manufactured products as the Board may deem appropriate.
In the case where a loss has been incurred during the period ofreceiving exemption of juristic person income tax referred to under either
paragraph one or paragraph two, the Board may grant permission to thepromoted person to deduct such annual loss from the net profits accrued
after the expiration of the period of exemption of juristic person income
tax for a period of not more than five years from the expiry date of such
period. The promoted person may choose to deduct such loss from thenet profit of any one year or several years.
The computation of the investment capital referred to underparagraph one shall be in accordance with the rules and proceduresprescribed by an announcement of the Board.
Section 32. In the case where the Board is of the opinion that, in
granting promotion to any activity or applicant, it would be inappropriate
to grant the exemption of juristic person income tax under section 31,
the Board may grant promotion to such activity or applicant and the ones
that follow without granting exemption of juristic person income tax.
Section 33. Fees for goodwill, copyright or other rights from thepromoted person according to the contract approved by the Board shall,in accordance with the rules are procedure prescribed by the Board, be
exempted from computation of taxable income for a period of five years
from the date the promoted person first derives income from thepromoted activity.
Section 34. Dividends derived from a promoted activity granted
an exemption of juristic person income tax shall be exempted fromcomputation of taxable income throughout the period the promoted
person receives the exemption of juristic person income tax.
Section 35. For the purpose of promoting investment in certain
locations or zones, the Board may prescribe, by publication in the
Government Gazette, such locations or zones as Investment Promotion
Zones.
Apart from the rights and benefits referred to in other sections
herein, the Board shall have the power to grant a promoted person
operating the promoted activity in such locations or zones prescribedunder paragraph one, one or more special rights and benefits as follows:(1) A fifty per cent reduction of the normal rate of juristic person
income tax on the net profit derived from the promoted activity
for a period of not more than five years commencing from the★

★

Amended by Amendment Act (No. 3) B.E. 2544 (A.D. 2001)

10

expiry date referred to under either paragraph one orparagraph two of section 31, or from the date income is first
derived from the promoted activity in the case where thepromoted person is not granted exemption of juristic person
income tax;
(2) Permission to deduct for the purpose of assessing juristic
person income tax an amount double the costs oftransportation, electricity and water supply incurred by thepromoted person in the operation of the promoted activity,
subject to such conditions, procedures and periods of time asshall be prescribed by the Board;(3) Permission to deduct from the net profit an amount notexceeding twenty-five per cent of the cost of installation orconstruction of facilities used in the promoted activity
according to the rules prescribed by the Board, under which
the promoted person may, in addition to normal depreciation,choose to make such deductions from the net profit of any one
year or several years within ten years from the date income isfirst derived from the promoted activity.
Section 36. For the purpose of promoting exports, the Board
may grant the promoted person one or more of the special rights andbenefits as follows:(1) exemption of import duties on the raw and essential materials
imported for use specifically in producing, mixing, orassembling products or commodities for export;(2) exemption of import duties on items which the promoted
person imports for re-export;(3) exemption of export duties on products or commodities which
the promoted person produces or assembles;(4) permission to deduct from the assessable income for paymentof juristic person income tax an amount equal to five percent of
the increased income over the previous year, derived from theexport of products or commodities produced or assembled by
the promoted person, exclusive of overseas insurance andfreight charges.
The foregoing shall be in accordance with such conditions,procedure and periods of time as shall be prescribed by the Board.
★

Section 37. A promoted person, or an investor in the promoted
activity whose domicile is outside the Kingdom, shall be granted
permission to take out or remit abroad money in foreign currency if it
represents(1) an investment capital which the promoted person brought into
the Kingdom and dividends or other returns on such capital;★

Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)11

(2) a foreign loan under a contract approved by the Board which
the promoted person brought in to invest in the promoted
activity, including the interest thereon;(3) a payment for a foreign obligation of the promoted person
under a contract for the use of rights and services relating to
the promoted activity, provided that such contract wasapproved by the Board.
During any period when there is an adverse balance of payments
which requires the preservation of foreign currency at a reasonable level,
the Bank of Thailand may temporarily restrict the remittance abroad ofsuch money, but the restrictions shall not cause the remittance of foreign
capital to be less than twenty percent annum, provided that such
remittance is made two years after the capital has been brought in, andthe dividends to be lower than fifteen percent per annum of the capitalbrought into the Kingdom.

Chapter 4
Machinery, Raw and Essential Materials
Section 38. The Board shall have the power to order the
Department of Customs to release to the applicant who has confirmed
the acceptance of promotion under section 21 or to the promoted person,as the case may be, all machinery, raw or essential materials ordered orimported into the Kingdom and entitled to exemption or reduction ofimport duties under this Act by treating a bank guarantee issued by acommercial bank in the Kingdom as a cash deposit against the paymentof import duties and/or business taxes.
★

Section 39. In the case where the promoted person is unable tocomply with the conditions relating to the import of machinery, or to the
exemption or reduction of import duties on machinery prescribed in the
promotion certificate and the Board is of the opinion that there aresuitable grounds to amend the conditions, the Board shall have thepower to make amendments thereto, if such machinery has been
imported under the due process of law on customs, the Board may makethe amendments retroactive to the date of its import, regardless ofwhether the import is made before or after the date of enforcement of this
Act.
★★

★

Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)
Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)★★

12

Section 40. Within the period prescribed by the Board, whichshall not be less than five and not more than fifteen years, the promoted
person is prohibited to:(1) use the machinery on which he has been granted theexemption or reduction of import duties is granted for any
purpose other than that of the promoted activities of thepromoted person, or to allow any person to use suchmachinery;(2) move the factory or place of operation to any locality other thanthat prescribed in the promotion certificate.
Such prohibition shall not apply to the case where permission is
granted by the Board under section 41.
★

Section 41. The Board shall have the power to permit a promoted
person to mortgage, sell, transfer, lease, use for other purposes, or toallow other persons to use the machinery on which the exemption or
reduction of taxes or duties is granted under section 28 or section 29, or
to move the factory or place of operation to other locality.
The permission may be made in writing or by amending thepromotion certificate; and the conditions and details of such permission
may be stipulated therein.
The law on customs tariff shall not apply to the promoted person
receiving permission from the Board under the Act unless the Board shallotherwise specify. In such a case, the law on customs tariff shall apply
only in so far as it is not contrary thereto or inconsistent therewith.
Section 42. In the case where a promoted person has mortgaged
machinery on which the exemption or reduction of taxes and duties isgranted and the mortgagee who is not a promoted person forecloses the
mortgage before the expiration of the period prescribed by the Board
under section 40, the law on customs tariff shall apply to the mortgagee
as if he were the importer who ceases to be entitled to exemption or
reduction of taxes and duties on the machinery from the date of transfer.

Chapter 5
Guarantees and Protection
Section 43. The State shall not nationalize the activity of thepromoted person.
Section 44. The State shall not undertake a new activity incompetition with the promoted person.
Section 45. The State shall not monopolize the sale of products orcommodities of the same kind as, or similar to those produced or
assembled by the promoted person.
★

Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)

13

Section 46. The State shall not impose the price control on the
products or commodities of the promoted activity except when it isnecessary for the economic and social development and for the securityof the country but in no case shall the controlled prices be lower thanthose which the Board deems appropriate.
Section 47. The promoted person shall be granted permission toexport products or commodities of the promoted activity at all times
except when it is necessary for the economic and social development andfor the security of the country.
Section 48. The State shall not allow any government agency,
government organisation or state enterprise to import into the Kingdom,with import duties exempted any kind as those being produced or
assembled by the promoted person, which are comparable in quality
therewith and are available in sufficient quantity to be acquire for its use.
The provision of paragraph one shall not apply to munitions under
the law on control of military munitions for use in the service of the
Ministry of Defence★

Section 49. In the case where it is necessary to protect theactivity of the promoted person the Board shall have the power to impose
special fees for the import into the Kingdom of products or commoditiesof the same kind as, similar to, or substitutable with those produced or
assembled by the promoted person at the rates the Board considers
appropriate but not exceeding fifty percent of the prices of such imported
products or commodities, inclusive of overseas insurance and freightcharges.
The imposition of special fees under paragraph one shall beannounced in the Government Gazette and shall be effective each period
not more than one year from the day following the date its publication in
the Government Gazette.
The Board shall have the power to make by publishing in the
Government Gazette an amending or cancellation of the announcement
made under this section at any time it deems appropriate.
In the case where there is a question whether or not the product orcommodities imported into the Kingdom are subject to the special fees inaccordance with the announcement of the Board, the Board shall havethe power to decide it and the decision of the Board shall be final.
The collection of special fees for the import under this section shallbe the power and duty of the Customs Department and law on customs
shall apply mutatis mutandis as if the special fees for the import were theimport duties under the law on customs tariff.
In the case where the Board decides that such products orcommodities are not subject to the special fees and person has paid the★

Amended by Amendment Act (No. 2) B.E. 2534 (A.D. 1991)

14

special fees therefore, the Department of Customs shall refund the fees tosuch person.
Section 50. In the case where the Board is of the opinion that theimposition of special fees under section 49 is inadequate for theprotection of the activity of the promoted person, the Ministry ofCommerce shall ban the import into the Kingdom of products orcommodities of the same kind as, similar to, or substitutable with those
produced or assembled by the promoted person in accordance with thelaw on the control of export and import into the Kingdom of certain
goods.
Section 51. In the case where the promoted person encounters
any problem or obstacle in the course of carrying out the promoted
activity and lodges his complaints to secure the assistance of the Board,
the Chairman shall have the power to render any appropriate assistanceor to order the related government agencies, government organisations,or state enterprises to proceed with the assistance without delay.
Section 52. In the case where the structure, rates, or procedure
for the collection, of taxes and duties, service charges or fees are found to
be an obstacle to the promotable or promoted investments, irrespective ofwhether a complaint has been lodged with the Board, the Chairman shallhave the power to order the related government agencies, governmentorganisations, or state enterprises to take remedial action.
Section 53. Any government agency, government organisation orstate enterprise to which the order of the Chairman has been issued
under section 51 or section 52 shall render assistance or take remedialaction in accordance with the aforesaid order. If the order cannot be
implemented, it shall report to the Chairman with reasons within fifteendays from the date the order was received.
Upon having received the report of reasons under paragraph one,
the Chairman may take any appropriate action which shall be final andthe government agency, government organisation or state enterpriseconcerned shall comply therewith without delay.

Chapter 6
Withdrawal of Rights and Benefits
Section 54. In the case where a promoted person violates or fails
to comply with the conditions stipulated by the Board, the Board shallhave the power to withdraw the rights and benefits granted to him, in toto
or in part, and may prescribe the duration thereof.
If the Board is of the opinion that such violation or failure tocomply with the conditions by the promoted person is unintentional, theBoard may first instruct the Office to serve a written warning to thepromoted person to make remedy or to comply with the conditions with a15prescribed period. If, after the expiration of such period, the promoted
person has failed to do accordingly without justification, the Board shalltake action as prescribed in paragraph one.
Section 55. In the case where the Board has withdrawn in toto
the rights and benefits concerning taxes and duties on imports orexports, it shall be treated as if the promoted person had never been
granted exemption or reduction of taxes and duties from the beginningand he shall pay taxes and duties computed on the basis of the conditionand price of the items and the rate of taxes and duties thereof, as existedon the date of import or export. As for reduction of taxes and duties was
granted, the outstanding balance of the full amount of taxes and duties
as computed above shall be paid.
In the case where the Board has withdrawn in part the rights andbenefits concerning taxes and duties on imports or exports, it shall betreated as if the promoted person had been granted exemption or
reduction of taxes and duties from the beginning only to the extent of therights and benefits still remaining to him and he shall pay taxes andduties only on the part which has been withdrawn computed on the basisof the condition and price of the items and the rate of taxes and duties asexisted on the date of import and export.
★
The promoted person shall apply to the Customs Department or
customs station through which the import or export of such items was
effected within one month from the date of being informed of the order ofthe Board withdrawing such rights and benefits concerning taxes andduties to pay taxes and duties or additional taxes and duties, and thepromoted person shall pay them at the customs office designated by the
Customs Department within one month or from the date the promoted
person was informed of the amount payable. If the promoted person fails
to apply for paying taxes or does not pay such taxes and duties oradditional taxes and duties within the time referred herein, the promoted
person shall pay a surcharge at the rate, not on a compound basis, of
one per cent per month of the amount thereof, payable from the expiry ofeither the application date or the payment date until the date that suchtaxes and duties or additional duties as well as surcharges have been
paid, provided that it shall not exceed 3 months from such expiry dates.
If the promoted person fails to comply so, it shall be treated as if theimport or export of such items was effected by means of evasion of taxes
and duties and the law on customs shall apply thereto. For the purposeof calculation of such surcharges, a fraction of one month shall becounted as one month.
In the case where the promoted person fails to comply with thewarning of the Office under section 54, paragraph two, the Board may
require the promoted person to pay a surcharge to the Government
through the Customs Department, together with the taxes and duties oradditional taxes and duties payable under paragraph three, at the rate of★

P aragraph three of Section 55 repealed and replaced by Amendment Act (No.
3) B.E. 2544 (A.D. 2001)16

one percent per month of the amount thereof, payable from the expiry
date of the period prescribed under section 54 paragraph two; provided
that the amount of surcharge under this section shall not exceed theamount of taxes and duties or additional taxes and duties payable; andin order to enforce the payment of surcharge, it shall be regarded as if itwere duty payable under the law on customs.
For the purpose of legal proceeding, the computation of theprescription under this section shall commence one month after theorder being informed.
Section 55/1. In the case where the Board has withdrawn therights and benefits concerning juristic person income tax, it shall betreated as if the promoted person had not been entitled to the rights on
the exemption or reduction of juristic person income tax for the financial
year that such rights and benefits have been withdrawn, and the
Revenue Code shall apply thereto.
The Board may withdraw the rights and benefits concerning
juristic person income tax and make the withdrawal retroactive to thefinancial year that the promoted person violated or failed to comply withthe conditions stipulated by the Board. The promoted person shall apply
to the Revenue Department or Regional Revenue Office or Provincial
Revenue Office in which the promoted person’s head office is located forpaying taxes and pay the taxes and duties that had been exempted or
reduced within one month from the date the promoted person was
informed of the withdrawal of such rights and benefits. The juristic
person income tax rate that is applicable for the financial year that thepromoted person is granted tax exemption or reduction shall apply fortax computation. If the promoted person fails to apply to and fails to pay
taxes and duties or additional taxes and duties within the time thereof,
the promoted person shall pay a surcharge under the Revenue Code fromthe expiry of the application date and not make the payment until suchtaxes and duties or additional taxes and duties as well as the surcharge
have been paid. If the promoted person fails to comply so, the Revenue
Code shall apply thereto.
The order of the Board withdrawing the rights and benefits
concerning juristic person income tax under paragraph two shall not
apply to dividends derived from the promoted activity which have been
paid prior to the date of such withdrawal order.
★

Section 56. In the case where the promoted person dissolves his
activity, merges it with others, or transfers it to others, the promotion
certificate shall be valid for a period not more than three months fromthe date of dissolution, merger or transfer.

★

Added by Amendment Act (No. 3) B.E. 2544 (A.D. 2001), not apply to theincome of a promoted person whose financial year ended before December 1,
2002 (The date of this Act came into force.)17

In the case where the operator of the newly merged or transferred
activity wished to take the transfer of the promoted activity under theconditions stipulated in the promotion certificate, he shall file anapplication for promotion within the period prescribed in paragraph one.
If the Board deems it appropriate to grant promotion thereto, a promotion
certificate shall be issued granting him such rights and benefits under
this Act in so far as they would remain to the original promoted person. If
the Board deems it inappropriate to grant promotion, it shall withdraw allrights and benefits.

Chapter 7
Final Provisions
Section 57. All powers and duties vested in the Board of
Investment under the Announcement of the National Executive Council
No. 227 dated October 18, B.E. 2515, concerning the execution of theAnnouncement of the National Executive Council No. 328, dated
December 13, B.E. 2515 shall be the power and duties of the Board
under this Act.
Section 58. It shall be considered that a person who has received
the promotion certificate to undertake an industrial activity according to
the category, size and conditions as stipulated by Ministerial Regulations
or announcements of the Board of Industrial Investment under the law
on promotion of industrial investment and a person who has received thepromotion certificate under the announcement of the National Executive
Council No. 227 dated October 18, B.E. 2515 prior to the date this Act
comes into force, shall be the promoted person under this Act and shallcontinue to enjoy such right and benefits under the conditions stipulated
in the promotion certificate and shall also have the right to apply for therights and benefits under this Act.
Section 59. Applications for promotion which have been approvedfor promotion by the Board under the Announcement of the National
Executive Council No. 227 dated October 18, B.E. 2515 shall beconsidered as having been approved for promotion by the Board under
this Act.
Section 60. Applications for promotion which are pending
consideration on the date this Act comes into force shall be considered ashaving been filed under this Act.

Countersigned byThanin Kraivixien
Prime Minister18

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