The Industrial Estate Authority of Thailand (IEAT) provides both tax and non-tax incentives. Industrial estates are divided into two zones: General Industrial Zones and Free Zones, whereby no export conditions are imposed in accordance with WTO obligations.
General Industrial Zones and Free Zones
The IEAT grants investors permission to own land for carrying out industrial activities; permission for foreign technicians, experts and spouse or dependents to stay in the country; permission to bring foreign technicians and experts to work under industrial activities; and permission to take or remit foreign currency abroad.
These incentives are available in both the general industrial and export processing zones.
Tax incentives from the IEAT include exemption from import duties, excise tax and VAT on machinery and raw materials; exemption or refund of duty from the import of local goods into the export processing zone for the production of goods for export; and exemption from export duties, excise tax and VAT on exported goods.
General Industrial Zone
The IEAT provides industrial operators in a General Industrial Zone with comprehensive services essential for industrial operation – such as transportation, warehouses, training centers and clinics – as well as permission to own land required for their operations. Investors in a General Industrial Zone are granted permission to operate service businesses in the General Industrial Zone.
IEAT Free Zone
Operators in an IEAT Free Zone are afforded the privilege of exporting products without any restrictions and with the added convenience of being able to bring merchandise or raw materials into an IEAT Free Zone. Supplies taken into an IEAT Free Zone are entitled to improved tax and duty privileges, including tax burden relief for products taken out of an IEAT Free Zone for domestic use or consumption and content or raw material components, if produced domestically, are entitled to tax and duty exemptions.
Operators in an IEAT Free Zone remain entitled to privileges indicated in the previous Industrial Estate Authority of Thailand Act.
Operators are granted permission to import into Thailand or bring into an IEAT Free Zone, merchandise and raw materials for production, trade or service offering, without any restriction that importation of such material is limited to business operators. Export goods producers are also permitted to bring supplies or raw materials into an IEAT Free Zone for manufacturing, mixing, assembling, packing or any other operations, without requiring any import permits or particular seals or symbols and with exemptions from standard and quality control requirements contained in any other laws — except those found in the customs law.
For more information, please visit www.ieat.go.th.