Tax and Non-tax Measures of for Promoting Medical Devices Industry in Thailand.

          Currently, Thai investment promotion policy on the medical devices industry is mainly under the guidance and execution of Board of Investment (BOI). There are two main measures of the BOI those are tax and non-tax measures. The benefit would be categorized based on primary incentives, merit-based incentives, competitive-based incentives, rural development incentives, and the industrial zone and Eastern Economic Corridor incentives.

The tax measures compose of

  • Exemption/reduction of import duties on machinery (Section28/29)
  • Reduction of import duties for raw or essential materials (Section 30)
  • Exemption of import duties on materials imported for R&D purposes (Section 30/1)
  • Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31 and 34)
  • A 50 percent reduction of the corporate income tax (Section 35(1))
  • Double deduction from the costs of transportation, electricity and water supply (Section35(2))
  • Additional 25 percent deduction of the cost of installation or construction of facilities (Section35(3))
  • Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)

The non-tax measures compose of

  • Permit for foreign nationals to enter the Kingdom to study investment opportunities. (Section 24)
  • Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities (Section 25 and 26)
  • Permit to own land (Section 27)
  • Permit to take out or remit money abroad in foreign currency (Section 37)


          The investor in the medical device industry would receive different tiers of benefit from A1 to A4 with particular consideration for the benefit under section 8 (innovation and technology promotion and section 5 (targeted industry promotion). For example, if the investor invests in the manufacturing of high-tech or high-risk medical devices such as X-ray, MRI, CT scan, or embedded devices, the investor will receive A1 tier benefit along with section 5 and section 8 benefits. 

          The overall incentives are tax holiday of ten years with and the possible extension of 1-3 year, zero import duty for machinery as well as the material used in research and development, and export. However, for the other related non-tax measures, the investor does not need tax deduction measures since the investor does not need to pay tax for at least ten years.


Page view : 251