The cabinet yesterday approved the criteria and conditions for foreign educational institutes that plan to establish their branches in the Eastern Economic Corridor (EEC).
Kobsak Phutrakul, assistant minister to the Prime Minister's Office, said foreign educational institutes should not be ranked below 100 in the ratings of Quacquarelli Symonds, Times Higher Education or other international agencies approved by Thailand's Education Ministry.
The faculties in the EEC should focus primarily on the government's targeted industries.
The EEC was designed by the government to be a flagship project for driving growth. It spans a combined 30,000 rai in the provinces of Chon Buri, Rayong and Chachoengsao to accommodate investment in 10 targeted industries: next-generation cars; smart electronics; affluent medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
One incentive is a 50% cut in corporate income tax, in addition to previous tax incentives offered to investors in the EEC, such as a personal income tax rate of 17% for high-ranking executives, experts and researchers who work for firms investing in the targeted industries and headquartered in the EEC.
The personal income tax structure has seven brackets. Taxable income of 150,001-300,000 baht is charged at a rate of 5%, progressing upward to brackets of 300,001-500,000 (10%), 500,001-750,000 (15%), 750,001 to 1 million (20%), over 1 million to 2 million (25%), over 2 million to 4 million (30%) and over 4 million (35%).
The Board of Investment (BoI) recently endorsed tax holidays of up to 13 years to support investment in targeted technologies, an increase from the eight-year period for other businesses.
Projects eligible for the tax incentives will be divided into two categories: four targeted core technologies (biotechnology, nanotechnology, advanced materials technology, digital technology) and enabling services.
The BoI also approved waivers for import tariffs on materials to be used in R&D for chemical substances, prototypes, animals and plants.
Investors in general businesses will also be allowed to claim 300% deductions for R&D expenses, up from 200%, if they invest in technological or human resource development.
Mr Kobsak said the ratings of the faculties to be opened in the EEC should be higher than those of their counterparts in Thailand, while the ratio between Thai and foreign students should be balanced to increase opportunities for the former.
Foreign educational institutes will also be entitled to promotional privileges from the BoI.
