Introducing the STI

 

   Under Thailand BOI’s scheme to encourage industrial sector investment in developing Skills, Technology and Innovation (STI), additional rights and privileges shall be granted to BOI promoted companies investing in development of Skills, Technology & Innovation. Based on the BOI Announcement No. 3/2549 and its amendment in the BOI Announcement No. 6/2552, STI expenditures must cover:
  

     -    research and development or design,
     -    advanced technological training and
     -    support for educational or research institutes

The new alternative: 
            

           Further amendment following the BOI announcement No. 11/2552, the new qualified expenditure covers the donation to technology and HR development funds as approved by the BOI, and one such fund is the Science and Technology Development Fund operated by the National Science and Technology Development Agency (NSTDA).


    Currently, BOI announces the announcement No. 2/2557 “Policies and Criteria for Investment Promotion and decline the BOI Announcement No. 3/2549 and No. 6/2552 by using the new one instead in the number of 9.2 Merit-based Incentives in order to attract and stimulate more investment or spending on activities that benefit the country or industry at large, the Board stipulates additional incentives based on merits of the projects as follows:


(1)    Research and Development in technology and innovation including in-house R&D, outsourcing R&D in Thailand or joint R&D with overseas institutes.

(2)    Donations to technology and Human Resources Development Funds, educational institutes, specialized training centres, research institutes of governmental agencies in the science and technology field in Thailand, as approved by the Board

(3)    IP acquisition/licensing fees for commercializing technology developed in Thailand

(4)    Advanced technology training

(5)    Development of local suppliers with at least 51% Thai shareholding in advanced technology training and technical assistance

(6)    Product & Packaging Design; either in-house or outsourcing in Thailand, as approved by the Board 

 

The different Criteria of NSTDA Fund and others

 

 

 

 

Apply for Merit from the BOI by

 

Evidence for inspection

 

1. Research and Development in technology and innovation including in-house R&D, outsourcing R&D in Thailand or joint R&D with oversea institutes. 

Proposing an Merit investment plan to the STI Working Group for approval before apply to the Board of Investment

All receipts in Merit investment / expenditure All receipts in Merit investment / expenditure

 

2 IP acquisition/licensing fees for commercializing technology developed in Thailand

 

3 Advanced technology training 

 

4 Development of local suppliers with at least 51% Thai shareholding in advanced technology training and technical assistance

 

5 Product & Packaging Design; either in-house or outsourcing in Thailand, as approved by the Board

 

6 Donations to technology and Human Resources Development  Funds, educational institutes, specialized training centres, research institutes or governmental agencies in the science and technology field in Thailand, as approved by the Board

Submitting an application directly to the Board of Investment with a letter from NSTDA

A copy(ies) of an official receipt(s) issued by NSTDA
  

  

 

Additional rights and privileges in accordance with the size of Merit expenditures

  

Merit Investment/ Expenditure

Additional rights and privileges

 

1% of total revenue for the first 3 years of operations or at least 200 million baht, whichever is less

 

• 1 additional year of corporate income tax exemption, however the total duration shall not exceed 8 years

 

•Gain 100% of corporate income tax exemption

 

2% of total revenue for the first 3 years of operations or at least 400 million baht, whichever is less

 

• 2 additional year of corporate income tax exemption, however the total duration shall not exceed 8 years

 

• Gain 100% of  corporate income tax exemption

 

3% of total revenue for the first 3 years of operations or at least 600 million baht, whichever is less

 

• 3 additional year of corporate income tax exemption, however the total duration shall not exceed 8 years

 

• Gain 100% of  corporate income tax exemption

 

 

NSTDA S&T Development Fund donation procedures in order to apply for Merit

 

 

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* Existing promoted projects entitled to exemption of corporate income tax under section 31 those have recognized revenue on the date they submit application, they must have remaining rights and privileges for corporate income tax exemption under section 31.  For promoted projects that do not have rights and benefits for corporate income tax exemption under section 31, if it wishes to apply for rights and privileges of STI measure, application must be submitted at the time of applying for investment promotion.