Doing Business in Thailand

List of activities eligible for promotion and their conditions

Section 5: Manufacture of electrical equipments

Activity

Conditions & Privilege

which the BOI has specified otherwise;

1. Exemption of import duty for machinery in all zones throughout the period of the promoted

status.

2. Exemption of corporate income tax as follows:

a) Exemption from corporate income tax for a period of five years will be grantedto projects in Zone 1

b) Exemption from corporate income tax for a period of six years will be granted to projects in Zone 2. If the project is located in an industrial estate or a promoted industrial zone, it will receive corporate income tax exemption for a period of sevenyears

c) Exemption from corporate income tax for a period of eight years will be granted to projects in Zone 3

3. Other rights and benefits will be granted according to Board of InvestmentAnnouncement No.1/2543 datedAugust 1, 2000.

4. Investment in reconditioning machinery using high-technology used in the production of Integrated Circuits (IC), Hard Disk Drives (HDD) and parts for Hard Disk Drives (HDD),are regarded as part of investment promoted projects.

5. Those applying for investment promotion must submit applications according to the criteria specified by the Office of the Board of Investment, as well as a specific plan for raw material and parts usage.

5.3.3 Manufacture of insulated wires or cables

5.3.4 Manufacture of parts or equipment for other appliances

(1) Calculators

(2) Computers

(3) Office automation equipment,specifically: word processing,desktop publishing, photocopiers or electronic typewriters

5.4.2 Manufacture of household appliances:

(1) Microwave ovens

(2) Other personal electronic appliance

5.4.3 Manufacture of automated industrial automation equipment:

(1) Temperature controllers

(2) Robots

(3) Machine diagnostic devices

(4) Material handling devices

5.4.4 Manufacture of radio, television or telecommunications equipment and apparatus:

(1) Televisions

(2) Video cassette recorders and

players

(3) Video disc players

(4) Video text players

(5) Equipment for satellite ground

stations

(6) Radio receivers

(7) Car radios

(8) Radio-tape recorders and players

(9) Audio systems

(10) Compact disc players

(11) Digital tape players

(12) Intercom systems

(13) Communication radio equipment,including mobile radio equipment, amateur radio equipment, citizen band transceivers, microwave equipment, broadcasting systems and paging systems

(14) Radar

(15) Telecommunication equipment,including voice switching systems, telegraph carriers, telephones and cellular phones

(16) Fiber-optic communication systems

(17) Data communication equipment

(18) Television broadcasting

equipment

(19) Facsimile machines

5.4.5 Manufacture of professional and scientific measuring and controlling equipment not elsewhere specified, and manufacture of photographic and optical goods:

5.5.1 Diodes

5.5.2 Transistor

5.5.3 Thyristors

5.5.4 Integrated circuits

5.5.5 Opto-electronic devices

5.5.6 Resistors

5.5.7 Capacitors

5.5.8 Relays

5.5.9 Switches and keyboards

5.5.10 Magnetic components, including telescopic antenna, transformerswith capacity of less than 1 KVA, coils or other magnetic components

5.5.11 Transducers

5.5.12 Quartz crystals

5.5.13 Passive filters and networks,including electro-mechanical filters, RFI and EMI filters, RC networks, delay lines, attenuators

5.5.14 Connectors

5.5.15 Printed circuit boards

5.5.16 Plugs and sockets

5.5.17 Acoustic parts, including micro-phones,ear-phones, loudspeakers and accessories, head-phones, cartridges or other acoustic parts

5.5.18 Micro-motors

5.5.19 Electronic tubes

5.5.20 Microwave telecommunication components, including microwave switches, ferrite devices

5.5.21 Computer components, including storage equipment (BOI Announcement No. 5/2547), optical discs, terminals,keyboards, printers, computercommunication equipment

5.5.22 Electronic sub-assemblies, including printed circuit board assemblies or electro-mechanical sub-assemblies

5.5.23 Flat, shielded, coaxial or signal cables

1.1 Exempt from import duties on machinery,regardless of zone

1.2 Exempt from corporate income tax for eight years without corporate income tax cap

1.3 Other rights and benefits shall be granted according to BOI Announcement No. 1/2543.

2. Production processes must be approved by theBoard.

1. Exemption of import duty on machinery in all zones and permission to import machineries for

the improvement and the replacement ofproduction capacity of the existing project whether or not it has become fully operational.

2. Exemption of corporate income tax for a periodof eight years without being subject to thecorporate income tax exemption cap.

3. Investment for the purpose of improving the existing machinery will be regarded as part ofthe promoted project

5.7.2 Prototype design

5.7.3 Embedded system design

5.7.4 Design for specific applications including artificial intelligence, virtual reality, neural network, fuzzy

logic, and education

5.8 Software (49)

5.8.1 Enterprise

- Exempt from corporate income tax for eight years, regardless of zone without being subject to the corporate income tax exemption cap.

2. Revenues derived from sales or the provision of services that are directly related to a promoted business or which are from downstream production for commercial purposes, either carried by the promoted company or subcontractors, will be regarded as revenue of such promoted businesses.

5.8.2 Digital Content (50)

(1) Software

(2) Computer-generated Imagery

(3) Web-based Applications

(4) Interactive Applications

(5) Games: incl. Windows-based, Mobile Platform, Console, PDA, Online Games, Massive, Multi-Player Online Games

(6) Wireless Location-based Service Content

(7) Visual Effects

(8) Multimedia Video Conferencing Application

(9) E-Learning Content via Broadband and Multimedia

(10) Computer Aided Instruction

5.8.3 Embedded Software

5.9 E-

5.8.2 Digital Content (50)

(1) Software

(2) Computer-generated Imagery

(3) Web-based Applications

(4) Interactive Applications

(5) Games: incl. Windows-based,

Mobile Platform, Console, PDA,

Online Games, Massive

Multi-Player Online Games

(6) Wireless Location-based Service Content

(7) Visual Effects

(8) Multimedia Video Conferencing Application

(9) E-Learning Content via Broadband and Multimedia

(10) Computer Aided Instruction

5.8.3 Embedded Software

5.9 E-

- Sales of final products amount to not less than 2.5 billion baht annually. Exemption fromcorporate income tax will not be granted foryears in which sales volume is below this amount

2. All activities from beginning to end receive thesame tax and duty privileges as the end product, excluding retail sales

3. A plan for the transfer of technology to local entrepreneurs is proposed for the Board’sconsideration and approval.

4. Tax and duty privileges will not be granted for activities that are currently in operation.

(46) Please see Board of Investment Announcement No. Sor 9/2547 dated December 20, 2004

(47) Please see Board of Investment Announcement No. 7/2549 dated March 20, 2006

(48) Please see Board of Investment Announcement No .2/2549 dated March 20, 2006

(49) Please see Board of Investment Announcement No Sor 3/2547 dated July 1, 2004

(50) Please see Board of Investment Announcement No .Por 5/2547 dated July 7, 2004

(51)