Special Economic Zone : SEZ and Eastern Economic

Corridor : EEC

Thee Jitpitaklert, Ph.D. Tax Incentives Bureau 22 August 2017

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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

3

SEZ Committee (กนพ)

SEZ Committee Secretariat Office (สนพ)

Working Mechanism

Credit : data from NESDB

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Labor health,

Border workers

Land

Infrastructure and Customs Houses

Security

Labors, Workforce

Credit : data from NESDB

Natural Resour

ces

Work Plan

Incentives

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• Free CIT 8 Years, and 50% for 5 years

• Allow of foreign workforce permits BOI

• Revenue dept –CIT 10% for 10 years

• Customs dept – compromised

conditions to apply for Customs Free Zone and, Customs Bonded Warehouse

besides BOI

• Minimum investment start at 500,000 baht SMEs

• EXIM Bank investment loan in SEZ

Investment Loan

Incentives

6 Credit: BOI June 2017, Infographic by NESDB.

Customs Tax Incentives in SEZs

Customs Notification 154/2558 dated 15 July 2015

and Customs Notification 32/2559 dated 23

March 2016

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Capital paid Regular SEZs

BW – General type ≥ 20 MB ≥ 5 MB

BW-Manufacturing type

≥ 1 MB ≥ 1 MB

Free Zone Establisher

≥ 60 MB ≥ 10 MB

Free Zone User ≥ 5 MB ≥ 1 MB

Bank Guarantee for Free Zone Establisher 5 MB 2 MB 8

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Eastern Economic Corridor : EEC

Government Policy to promote trade, investment, tourism, in Rayong, Chonburi, Chacheongsao

U-tapao airport development

Maptaphut seaport

Laem

Chabang Seaport

Highspeed train

Double-rail train

Motorway

New S Curve Industrial

New Town Development

Tourism

Credit : IEAT

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NEXT-GENERATION AUTOMOTIVE

SMART ELECTRONICS

AFFLUENT, MEDICAL & WELLNESS TOURISM

ARGRICULTURE & BIOTECHNOLOGY

FOOD FOR THE FUTURE

ROBOTICS

MEDICAL HUB

AVIATION

BIOFUELS + BIOCHEMICALS

DIGITAL

Uplifting of

Existing Strong Base Moving

Towards

Future Industries

Credit : IEAT

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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

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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

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Development

17 Jan 17

EEC Committee established

21 Feb 17

Cabinet approved Dr.Kanis Saengsupan to be Secretariat of the EEC office

8 May 17

EEC office MOU with HKTDC to connect EEC with One Belt One Road

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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

5. New town, and Free Economic Zone Living, trade, investment Credit : IEAT

What’s in EEC?

Terminal Ferry port

Sattahip

beach Shops and

duty free

Cruise

port

Navy area

16 Credit : Navy

Sattahip seaport

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Free Economic Zone

Free Trade Zone

Free Economic Zone

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Free Economic Zone

Confusion

Free Economic Zone

Customs Free Zone IEAT Free Zone

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Incentives in

Thailand

BOI

IEAT

• General Zone

• IEAT Free Zone

Tax reimbursement ACT BE.2524

Customs Dept.

• Customs Free Zone

• Bonded Warehouse

• Duty Drawback

sensitive list

Incentives

Land development

Law process

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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

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Free Economic Zone

Expected FEZ areas

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1.Lamchabang Seaport Logistics and Clusters support

2.U-tapao airport Aviation hub, Digital Economy – E-Commerce

3.Maptaphut seaport Petrochemical products

4.Inland industrial Zones Automobiles, Robotics, electronics

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2 3

4

Credit : IEAT

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1. Ladkrabang Cargo Control Customs Bureau

2. Suvarnabhumi Airport Cargo Clearance Customs Bureau

3. Laem Chabang Port Customs Bureau

4. Maptaphut Customs House

Customs Dept. and EEC

Credit : IEAT

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Free Zone

Bonded Warehouse

Duty Free Shop

การลดหรือยกเว้นอัตราอากร

Electronic Customs Control

Customs Alliance

Customs Dept. and EEC

Thank You

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Thee Jitpitaklert, Ph.D. Tax Incentives Bureau,

Thai Customs Department Email: 106956@customs.go.th

Line: drthee23