The Board of Investment has introduced incentives to support the biotechnology industry through a maximized incentive package comprised of an eight-year corporate income tax exemption and an additional 50 per cent corporate income tax break for five years should the applicants' facilities be located in science and technology parks.
BOI board meeting, chaired by Deputy Prime Minister and Industry Minister Mr. Kosit Panpiamras, announced that BOI will offer promotional privileges to a new business category to correspond to the country's national biotechnology policy and encourage more investment in the industry's research and development.
Biotechnology will be considered a target industry entitled to receive an exemption of import duty on machinery and an eight-year corporate income tax break, without an investment cap and zone. Projects located in science and technology parks will receive a 50 per cent reduction of corporate income tax for 5 years, after the exemption period.
The incentives are granted to:
1. Research and development (R&D) and manufacturing activities using biotechnology in the seed industry, and in plant and animal improvement industry.
2. R&D and manufacturing activities of biopharmaceutical agents using biotechnology. (For example, drugs, vaccines, and therapeutic proteins.)
3. R&D and manufacturing activities of diagnostic kits and reagents for health, agriculture, food and environment applications. (For example, diagnostic kits for pure line breeding, diagnostics for disease screening, biosensors and gene chips.)
4. R&D and manufacturing activities of biomolecule and bioactive compounds using microorganism, plant and animal cells. (For example, enzymes, probiotics, flavors, monoclonal antibodies and recombinant proteins.)
In addition, applicants must use modern biotechnology and be certified by the National Science and Technology Development Agency (NSTDA) or the Thailand Center of Excellence for Life Sciences of Office of Knowledge Management and Development.
In the past, the BOI did not have promotion measures designed specifically for the biotechnology industry, but provided promotion for related operations that came under other business sectors with promotion offers that varied. The new measures will directly benefit the biotechnology industry.