Thailand Special Economic Zone (SEZ) Tax Structures
Tax Insight | September 2015
On 09 September 2015, Royal Decree (No 591) was gazetted, providing a tax incentive for companies establishing businesses in a Special Economic Zone (SEZ). This Tax Insight summarizes the tax incentive in Royal Decree (No 591).
Special Economic Zones
Special Economic Zones are areas in the following ten Thailand border provinces, which the Government is promoting for the purposes of generating employment, improving living conditions, improving border security and enhancing Thailand's competitiveness:
SEZ Tax Structure
An SEZ tax structure is a business of a corporate entity that is:
An SEZ business operation that complies with all of the conditions is entitled to the following tax concession under Royal Decree (No 591):
Rules, Procedures and Conditions
An SEZ business that wishes to claim the above tax concession shall:
As a company claiming a tax concession in Thailand it is likely that an SEZ business will be rigorously investigated by the Thailand Revenue Department's tax audit officers, and if the tax audit officers should find any one of the rules, procedures and conditions has not been fully complied with, the SEZ business could lose its entitlement to the tax concession, and be required to pay back-taxes at the normal rates of tax plus penalty and surcharge.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.