7 Zone 3

3. Zone 3 - Approved projects located in the remaining 58 provinces will be granted:

  3.1. Exemption on import duties on machinery;

  3.2. Corporate income tax exemption for eight years provided that projects with capital investment of 10 million baht or more (excluding the cost of land and working capital) obtain ISO 9000 or similar international standard certification within two years of its start-up date, otherwise the corporate income tax will be reduced by one year.

  3.3. Exemption of import duty on raw or essential materials used in the manufacturing of export products for five years.

  3.4. Deduction from net profit of 25 percent of the project’s infrastructure installation or construction costs in addition to normal depreciation, and such deduction can be made from the net profit of one or several years within 10 years from the date of first revenue derived from the promoted activity.

  3.5. Projects located within industrial estates or promoted industrial zones in 36 provinces including Krabi, KamphaengPhet, KhonKaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai, Trang, Trat, Tak, NakhonRatchsima, Nakhon Si Thammarat, NakhonSawan, PrachuabKhiri Khan, PrachinBuri, Phangnga, Phattalung, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai, SuratThani, Uttaradit, and UthaiThani, as well as LaemChabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province(2) are granted tax and duty privileges under 3.1, 3.2, 3.3, 3.4 and the additional privileges as follows:

  Fifty percent reduction of corporate income tax of net profit derived from its investment for five years after the exemption period.

  Double deduction for transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity.

  Seventy-five percent import duty reduction of the normal rate on raw or essential materials used in manufacturing for domestic sales for five years. The Board will give approval for a period of a year. Similar raw or essential materials to the imports must not be available in the Kingdom in similar quality and quantity as necessary for the procurement. This incentive is not available to projects in LaemChabang Industrial Estate and industrial estates or promoted industrial zones in Rayong Province.