New law offers incentives to attract investment
A newly-amended Investment Promotion Law has recently been promulgated, offering a variety of incentives to attract investment in both promoted sectors and hardship areas. Businesses investing and operating in hardship communities (known as Area I), where infrastructure has not yet been developed, will enjoy favourable profit tax exemptions over 10 years according to the amended law, which was passed by the National Assembly in November last year. President Bounnhang Vorachit later issued a presidential decree promulgating the law. Those investing in promoted sectors whose businesses are located in hardship areas will now enjoy an additional five-year exemption of profit taxes bringing the total up to a 15-year exemption of profit tax.
