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Source: www.boi.go.th

As decentralization is a major theme in devising the BOI incentive scheme, Thailand Board of Investment has divided the country into three zones based on economic factors (with earnings and primary facilities as criteria of each province.)

Zone 1
Zone 2

Zone 3: 36 Provinces
Zone 3: 23 Provinces

Zone 1 : Bangkok, Nakhon Pathom, Nonthaburi, Pathoum Thani, Samut Prakan, and Samut Sakhon

Zone 2: Ang Thong, Ayutthaya, Chachoengsao, Chon Buri, Kanchanaburi, Nakorn Nayok, Ratchaburi, Samut Songkhram, Saraburi, Supanburi, Phuket and Rayong.

Zone 3: The remaining 59 provinces with low income and with less-developed infrastructure, which are designated as Investment Promotion Zones.

36 Provinces: Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai, Trang, Trat, Tak, Nakhon Ratchsima, Nakhon Si Thammarat, Nakhon Sawan, Prachuab Khiri Khan, Prachin Buri, Phangnga, Phattalug, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai, Surat Thani, Uttaradit, and Uthai Thani.

23 Provinces: Kalasin, Nakhon Phanom, Narathiwat, Nan, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakhon Nakhon, Satun, Nong Bua Lamphu, Chaiyaphum, Nong Khai, Ubon Ratchatani, Udon Thani Amnatcharoen and Bueng Karn.

Remark: 304
Industrial Park (Prachinburi) is located in BOI zone 3 whilst 304 Industrial Park 2 (Chacheogsao) is located in BOI Zone 2

Free Trade Zone

Free Trade Zone is the area allocated for commercial industry purpose and/or other types of business that benefit the country economy.

All items brought into the Free Zone will get tax privileges; subject to the law of tax exemptions;

1. Import duty exemption apply for
   • Machinery, equipments, tools and appliances including all spare parts to be used for industrial purposes, commercial purposes, or any other purposes that would benefit the economy of the country approved by the deputy of the Thai Customs Department
   • Imported items come into the country and transferred to the Duty Free Zone for industrial purposes, commercial purposes, or any other purposes that would benefit the economy of the country
   • Other imported items released from other duty free zone
     
     
2. Export duty emption for item released from duty free zone for exporting purpose
   
   
3. Value added tax exemption for imported items brought into duty free zone
   
   
4. Apply 0% for VAT calculation when bringing domestic items into duty free zone, exclusively for items with export duty or exempted export duty according to the Thai Customs Law
   
   
5. Exemption of Excise Tax for importing and manufacturing taking place in duty free zone
   
   
6. Exemption of Liquor Tax, stamp duty and other fees in accordance with the law of liquor, tobacco and gambling for importing and manufacturing taking place in the Duty Free Zone
   
   
7. Imported items or domestic raw materials, which are brought into duty free zone for manufacturing, mixing, packaging, etc. with the purpose of exporting the final product out of the Kingdom, are allowed not to abide by the law of standard quality control or quality certification or any other stamps requirement
   
   
8. Those items eligible for duty exemption or refund when export out of the Kingdom will also get duty exemption or refund when brought into duty free zone as same as when export these items out of the kingdom
   
   
9. Any items brought out of the duty free zone for domestic use or trade or transfer to parole warehouse or merchandise to an importer according to act 19 of the act of parliament on customs department (9th edition) , year 1939, or those eligible for duty exemption according to the law of tariff or other laws, are considered importing into the Kingdom or completely imported when such items are relocated out of the free duty zone
   
   
10. Any items in the Duty Free Zone being used for consumption or for other benefits beyond the purposes set for duty free zone establishment are considered relocating such items out of duty free zone for domestic use or trade as same as the definition stated in the previous condition except for the relocation with an intension of elimination the damaged items or out of use items, taking place in the area of duty free zone approved by the deputy of the Thai Customs Department
    
    
11. Released items from duty free zone for importing into the kingdom are required to pay for tax, rate for tariff calculation based on the physical condition of such items and real time tariff rate as of the date when the items are released out of duty free zone will be applied. In case of bringing the existing domestic items, which are not eligible for duty exemption or refund, into the duty free zone, tax calculation is not needed for cost of such items.

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