Investment Promotion Measure in the Southern Border Provinces Investment Promotion Measure in Model City Project in the Southern Border Provinces

For new investment projects both in general case and special case

Exemption of import duties on machinery

Exemption of corporate income tax for a period of 8 years without corporate income tax cap

50 percent reduction of corporate income tax on net profit derived from the investment for a period of 5 years as from the date on which the corporate income tax exemption period expires

Double deductions on the costs of transportation, electricity and water supply for a period of 15 years as from the date of revenue derivation from the operation.

Double deductions on the costs of transportation, electricity and water supply for a period of 25 years as from the date of revenue derivation from the operation.

Deduction of the costs of installation or construction of facilities for 25 percent of investment capital in addition to deduction of normal depreciation

Exemption of import duties on raw and essential materials used in manufacturing for export for a period of 5 years.

90 percent reduction of import duties on raw and essential materials used in manufacturing for domestic sale for a period of 5 years.

Non-tax incentives

Exemption of import duties on raw and essential materials used in manufacturing for export for a period of 10 years.

90 percent reduction of import duties on raw and essential materials used in manufacturing for domestic sale for a period of 10 years.

For existing projects in special case

Exemption of corporate income tax for a period of 3 years with cap not exceeding 100 percent of the investment capital of the new investment projects in the Southern Border Provinces (excluding cost of land and working capital).

Non-tax incentives

Exemption of corporate income tax for a period o f 5 years with cap not exceeding 100 percent of the investment capital of the new investment projects in the Southern Border Provinces (excluding cost of land and working capital).

For investment projects in industrial estates or industrial zones and activities located in industrial estates or industrial zones in the Southern Border Provinces

First project investment and Investment in expansion project

The same incentives as new projects in general case and special case.

Related Announcement

- Announcement of the Board of Investment No.20/2565: Investment Promotion Measure in the Southern Border Provinces date December 8, 2022.

- Announcement of the Board of Investment No.21/2565: Investment Promotion Measure in Model City Project in the Southern Border Provinces date December 8, 2022.