Special Economic Zone : SEZ and Eastern Economic Corridor : EEC. Thee Jitpitaklert, Ph.D. Tax Incentives Bureau 22 August 2017
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1 Special Economic Zone : SEZ and Eastern Economic Corridor : EEC Thee Jitpitaklert, Ph.D. Tax Incentives Bureau 22 August
2 In 2015, 10 SEZ are established First 5 SEZs are in Tak, Mukdaharn, Srakaew, Trad, and Songkla Second 5 SEZs are in Nhongkhai, Naratiwes, Chiangrai, Nakhonpanom, and Kanjanaburi Credit : NESDB 2
3 Working Mechanism SEZ Committee (กนพ) SEZ Committee Secretariat Office (สนพ) Credit : data from NESDB 3
4 Land Labor health, Border workers Incentives Work Plan Infrastruc ture and Customs Houses Security Natural Resour ces Labors, Workf orce Credit : data from NESDB 4
5 Incentives BOI besides BOI SMEs Free CIT 8 Years, and 50% for 5 years Allow of foreign workforce permits Revenue dept CIT 10% for 10 years Customs dept compromised conditions to apply for Customs Free Zone and, Customs Bonded Warehouse Minimum investment start at 500,000 baht Investment Loan EXIM Bank investment loan in SEZ 5
6 Credit: BOI June 2017, Infographic by NESDB. 6
7 Customs Tax Incentives in SEZs Customs Notification 154/2558 dated 15 July 2015 and Customs Notification 32/2559 dated 23 March
8 Capital paid Regular SEZs BW General type 20 MB 5 MB BW- Manufacturing type Free Zone Establisher 1 MB 60 MB 1 MB 10 MB Free Zone User 5 MB 1 MB Bank Guarantee for Free Zone Establisher 5 MB 2 MB 8
9 Eastern Economic Corridor : EEC Government Policy to promote trade, investment, tourism, in Rayong, Chonburi, Chacheongsao 9
10 Maptaphut seaport U-tapao airport development New Town Development Tourism Laem Chabang Seaport Highspeed train Motorway New S Curve Industrial Double-rail train Credit : IEAT 10
11 NEXT-GENERATION AUTOMOTIVE SMART ELECTRONICS AFFLUENT, MEDICAL & WELLNESS TOURISM ROBOTICS MEDICAL HUB AVIATION Uplifting of Existing Strong Base Moving Towards Future Industries ARGRICULTURE & BIOTECHNOLOGY FOOD FOR THE FUTURE BIOFUELS + BIOCHEMICALS DIGITAL Credit : IEAT 11
12 Beginning Industrial Estate Authority of Thailand (IEAT)- investment in IEAT, clusters Navy development of U-tapao airport, and Sattahip seaport NESDB town development, planning of water/electricity Ministry of Transportation railway, road, Logistics system 12
13 Development Drafted EEC Act by IEAT 4 Oct 16 Brought to Cabinet by NESDB, and approved by Cabinet Apr 17 Approved by the Office of the Council of State (Krisdika), the Cabinet send back to re-evaluate 13
14 Development 8 May Jan 17 EEC Committee established 21 Feb 17 Cabinet approved Dr.Kanis Saengsupan to be Secretariat of the EEC office EEC office MOU with HKTDC to connect EEC with One Belt One Road 14
15 What s in EEC? 1. High Speed Train Connect 3 airports and Rayong 2. MICE city Pattaya city 3. Sattahip seaport cruise and ferry 4. U-tapao airport Passengers, trade, logistics Credit : IEAT 5. New town, and Free Economic Zone Living, trade, investment 15
16 Sattahip seaport Navy area Shops and duty free Sattahip beach Terminal Ferry port Cruise port Credit : Navy 16
17 Free Economic Zone Free Trade Zone Free Economic Zone 17
18 Free Economic Zone Free Economic Zone Confusion IEAT Free Zone Customs Free Zone 18
19 BOI Customs Dept. Customs Free Zone Bonded Warehouse Duty Drawback Incentives in Thailand Tax reimburse ment ACT BE.2524 IEAT General Zone IEAT Free Zone 19
20 Free Economic Zone sensitive list Incentives Land development Law process 20
21 Free Economic Zone In Free Economic Zone Bank and financial area One-stop service Logistics hub National Single Window Successful cases: Shanghai Pilot Free Trade Zone (SPFTZ) - China Jurong Innovation District - Singapore Incheon Free Economic Zone (IFEZ) S.Korea 21
22 Expected FEZ areas 4 1.Lamchabang Seaport Logistics and Clusters support 1 2.U-tapao airport Aviation hub, Digital Economy E- Commerce 3.Maptaphut seaport Petrochemical products Credit : IEAT Inland industrial Zones Automobiles, Robotics, electronics 22
23 Customs Dept. and EEC 1. Ladkrabang Cargo Control Customs Bureau 2. Suvarnabhumi Airport Cargo Clearance Customs Bureau 3. Laem Chabang Port Customs Bureau 4. Maptaphut Customs House Credit : IEAT 23
24 Customs Dept. and EEC Free Zone Bonded Warehouse Duty Free Shop การลดหร อยกเว นอ ตราอากร Electronic Customs Control Customs Alliance 24
25 Thank You Thee Jitpitaklert, Ph.D. Tax Incentives Bureau, Thai Customs Department Line: drthee23 25
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