Presented by Ms. Ajarin Pattanapanchai, Deputy Secretary General, Thailand Board of Investment, August 23, 2016

1. Ms. Ajarin Pattanapanchai,
Deputy Secretary General 1
Thailand’s Investment Outlook

2. 2
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

3. 3
Sources: World Bank, NESDB, Ministry of Commerce, The Revenue Department
Thailand
Thai Economic Overview in 2016F
GDP US$389.8 billion,
(per capita) US$5,779
Growth 3.0-3.5%
1
Total Export Value
US$208.4 billion
Trade Balance $39.1 billion
2
Taxation
• Corporate: 20%
• Withholding: 1-10%
• VAT: 7%
4
Population 68 Million,
97% literacy rate
3

4. 4
2nd in HDD Exports
Thailand Plays a Vital Role in the Global Supply Chain
7th Rubber Tire
Exports
7th Computer Device
Exports
12th Automotive
Production

5. 5
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

6. 6
AEC
Asia &
Oceania
“We are surrounded by the
world’s economic powerhouses”
1 Strategic Location – right at the
Center of Mainland ASEAN
2 Strategic Location – gateway to
ASEAN
Thailand’s Strategic Location Offers Many Advantages

7. 7
Sources: IMF as of 2014, Ministry of Foreign Affairs of March 2015
ASEAN
Economic
Community
633 million population
(9% of world population)
GDP: US$ 2.4 trillion
(2% of world’s GDP)
FLAGSHIP OF ASEAN
• Emerging regional architecture
• A new generation FTA
• A high ambition agreement
Regional Comprehensive
Economic Partnership (RCEP)
(ASEAN + China, Japan, Korea, India,
Australia & NZ)
3.3 billion population
(50% of world population)
GDP: US$21 trillion
(28% of world’s GDP)
THE BIGGEST FTA
• Market size (16 countries)
• Regional supply chain
• FDI (intra-extra region)
ASEAN : Expanding Regional Integration offers More
Opportunities

8. Thailand: Well Developed Regional Connectivity

9. 9
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

10. 5th Asia’s Financial Literacy Index
MasterCard, 2014
The World’s Most Promising
Emerging Economies
Bloomberg Business, 2014 - 2016
11th
Ease of Doing Business among
Emerging Economies in East Asia
World Bank, 2016
2nd
Corruption Perception Index
Transparency International, 201576th
10
Global Recognition for Promising Economy

11. 4th Best Countries for Mover (High
Flexibility and Resilience)
Millennial Pick: Best Countries for
Economic Potential1st
Best Countries to Start a Business1st
Best Countries in the World (Overall)21st
11
Source: World Economic Forum, 2016
World Economic Forum Ranks Thailand as:
6th
Best Countries to Invest In
10th
Open for Business

12. 12
Sources: 2016 Global Manufacturing Competitiveness Index by Deloitte Touche Tohmatsu Ltd. & U.S. Council on Competitiveness
(as of December 2015)
5.57
5.58
5.65
5.9
5.9
5.91
6.04
6.21
6.36
6.72
6.84
6.87
6.95
7.29
7.58
7.67
8.04
9.39
9.95
10
Netherlands
Indonesia
Vietnam
Turkey
Malaysia
Poland
Thailand
Sweden
Switzerland
India
Singapore
Canada
Mexico
Taiwan
United Kingdom
South Korea
Japan
Germany
USA
China
Index Score
[10=high, 1=low]
2016 Global Manufacturing Competitiveness Index
# 14

13. 233
144
116
99
90
67
46
38
28
-
50
100
150
200
250
Hong Kong New Delhi,
India
Shanghai,
China
Singapore Seoul,
South
Korea
Jakartar,
Indonesia
Hanoi,
Vietnam
Manila,
Philippines
Bangkok,
Thailand
13
Affordable Office Spaces
Total Occupancy Cost of Prime Office
[Unit: EUR/squarefoot/annum]
1st
The Most Affordable Grade A
Office Space in Asia-Pacific
(Bangkok)
Source: Colliers International, 2015, CBRE’s Prime Office Occupancy Costs, 2015

14. 14
Utilities price is very competitive against
neighboring countries
Source: JETRO 23
rd
comparative Survey of Investment-Related Cost Comparison in Major Cities and Regions in Asia &
Oceania
Electricity Rate Water Rate
0.21
0.10 0.10
0.08 0.08
-
0.05
0.10
0.15
0.20
0.25
Singapore Kuala
Lumpur
Bangkok Hanoi Jakarta
(Unit: EUR/Kwh)
1.65
0.93
0.39
0.34 0.29
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
Singapore Jakarta Kuala
Lumpur
Bangkok Hanoi
(Unit: EUR/m3)
Competitive
Electricity Rate
Lower than
Regional Rate

15. Competitive
Corporate Income Tax
15
Competitive Corporate Income Tax
30%
25%
25%
25%
24%
22%
20%
20%
20%
17%
Phillippines
Malaysia
Indonesia
Myanmar
Laos
Vietnam
Cambodia
Brunei
Thailand
Singapore
Source: 1Deloitte’s Taxation of AEC, as of 2015
2nd
[Unit: %]

16. 16
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading Center

17. Policy
Tax
Incentives Facilitation
100% foreign
ownership
No local content
requirements
No export
requirements
No restriction on
foreign currency
Import duty exemptions/
reductions
Corporate income tax
exemption for up to 8 years
50% reduction of corporate
income tax for up to 5 years
Double deduction on utility costs
Deductions for qualifying
infrastructure costs
Land ownership rights
Work permit & visa
facilitation
Within 3 hrs
17
BOI’s Attractive Investment Incentives

18. Group Example Activities
A1
8-year CIT
exemption
with no
ceiling
• Micro electronics design, Embedded software & system design
• Software for Big data, Data Analytics, Cyber Security, etc.
• Data center, Cloud service, Training center
• Biotechnology, Lab test, R&D, Calibration services
• Manufacture & MRO of aerospace major parts
• Waste to energy, Energy services company, Engineering design
A2
8-year CIT
exemption
• Telecommunication devices, Electronics control and measurement,
Security control equipment, Solid state drives, Solar cell, OLED
• Hi-tech auto parts, Automation machinery,
• High risked medical device
• Medical food, Active pharmaceutical ingredient
• Bio plastics, Bio fuel, Electricity from renewable source
• Advanced or Nano material, Technical fiber,
• Power plant, Waste treatment,
Example of Promoted Activities (1/2)

19. Group Example Activities
A3
5-year CIT
exemption
• Enterprise software, Digital content, Digital Services e.g.
Platform service, FinTech, DigiTech, MedTech, AgriTech
• Electrical appliances with Internet of Things
• HDD, Semiconductor, Flat panel display, Photonics
• Selected Auto parts, Machinery, Mold & Die
• Forging, Casting of iron or steel
• Food processing, Tanneries, Oil from plant or animal
A4
3-year CIT
exemption
• Audio visual, LED, PCBA, Electromagnetic products
• Textile & Garment, non woven fabric, leather products
• Heat treatment, Ferro alloy,
• Paper and plastic packaging
• Jewelry, furniture
• Airlines, International distribution center
• Tourism related business
B 2 • E-commerce
Examples of Promoted Activities (2/2)

20. Success Stories of US Companies

21. 21
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

22. Cluster for businesses using advanced
technology and future-driven industries, e.g.
 Automotive and Parts
 Electrical Appliances and
Electronics and
Telecommunication Equipment
 Bioplastic/Chemicals, Specialty
Chemicals
 Digital
 Aerospace
 Automation and Robotics
 Medical Hub
 Food Innopolis
Super ClusterChiang Mai
Phuket
Ayutthaya
Patumtahani
Prachinburi
Nakhon
Ratchasima
Chachoengsao
Chonburi
Chonburi
Super Cluster Investment PromotionPolicy
22

23. 23
 8-year corporate income tax exemption and an additional 5-year
reduction of 50%
 Import duty exemption on machinery
 For future industries with significant importance, the Ministry of
Finance will consider granting 10-15 years corporate income tax
exemption
 Personal income tax exemption for renowned specialists who work in
the specified areas, both Thais and foreigners
 Consideration of granting Permanent Residence to leading specialists
 Permission for foreigners to own land to implement promoted
businesses
Tax
Non
Tax
Investment Incentives for Super Clusters
 Matching grant to encourage and support investors in the high-value
added activities in Super Cluster such as such R&D, training, etc.
** Remark: The cabinet has approved in principle the Ministry of Finance proposal
to set up a 10-billion-baht ($279-million-USD) fund to promote the targeted sector
$279
Million
Fund

24. Obligatory Conditions to Receive Cluster Incentives
24
 Must have cooperation with academic institution / research institution /
Center of Excellence in the cluster to develop human resource and
improve the level of technology e.g.
• Cooperation in the Talent Mobility / Work-integrated Learning /
Co-operative Education / Dual systems
• Cooperation in development of human resource or technology as
approved by the Board of Investment
 Must apply for investment promotion within 2016 and must start
operation within 2017 to accelerate investment, unless under necessity
i.e. large-scale project, the BOI will consider relaxation as deemed
appropriate.

25. 25
2 Thailand as the ASEAN Hub
1 Thailand at a Glance
Contents
3 Competitiveness
5 Investment Incentives for Super Cluster
4 Investment Promotion Policy
6 Incentives for International Headquarter and Trading center

26. Org. admin. and mgt.
& business planning
HR & training and dev.
Business advisory
services
Econ. and inv.
analysis and research
Credit mgt. and
controlTreasury center
Sourcing of goods
R&D
Technical support
Mkt. and sales promo.
IHQ
International Headquarters (IHQ): Scope of Activities
The paid-up registered capital must not be less than 10 million baht.
A juristic company incorporated in Thailand providing the following services
to IHQ’s foreign branches or associated enterprises

27. Goods insurance
Advisory, Technical
and Training services
about trading
Other services
Sourcing of goods
Warehousing and
inventory services
Packaging activities
Goods delivery
services
As in notification of the
Director General of Revenue
Department
ITC
International Trading Centers (ITC): Scope of Activities
Have total ITC business spending of at least 15 million baht per year in Thailand
A company incorporated in Thailand providing purchase and sale services as
well as other related services to juristic companies incorporated in oversea.

28. Corporate Income Tax Personal Income
Tax
Specific Business
Tax
Withholding Tax
• CIT exemption
(only services provided to
foreign branches or AE)
• 10% of CIT
(only income derived from
its branches or AE in
Thailand)
• Tax exemption of NP
from revenue from
purchase and sale of goods
to its foreign branches or
AE and such goods are not
imported to TH (OUT-OUT)
Tax rate at the rate
of 15% for expatriates
in specialist or
executive level working
in IHQ.
Tax exemption on
loan taken out by
IHQ to relend to its
branches or AE in TH
and abroad.
Tax exemption on
interest received from
its branches or AE in
TH and abroad for
loans granted in
accordance with BOI
regulations
Note: NP = Net profits, AE = associated enterprises
International Headquarters (IHQ): Special Tax Regime

29. Examples of IHQ / ROH in Thailand
29

30. Thank you
U.S. Desk @ BOI Headquarters
555 Vibhavadi-Rangsit Rd.
Chatuchak, Bangkok 10900 Thailand
Tel: (66 2) 537-8111 Fax: (66 2) 537-8098
E-mail: head@boi.go.th