Cabinet Approves Tax Incentives for U-Tapao Aviation City

On August 25, at Government House, Ms. Lalida Periwivatana, Deputy Spokesperson for the Prime Minister's Office, revealed that the Cabinet acknowledged a series of necessary and urgent support measures aimed at accelerating the development of the U-Tapao Airport and Eastern Aviation City project.

This initiative serves as a core infrastructure project within the Eastern Economic Corridor, known as EEC. The Eastern Economic Corridor Office of Thailand, or EECO, and U-Tapao International Aviation Co., Ltd. previously signed a joint venture agreement on June 19, 2020, with current efforts focusing on creating an appealing investment ecosystem.

Stock photo for illustration only, not from the actual event

The newly approved measures, endorsed by the EEC Policy Committee, span across tax incentives, investment facilitation, and structural developments. Key highlights of the support package include:

• Allowing corporate income taxpayers to deduct twice their actual expenses for asset investments (CAPEX) and operational expenditures (OPEX)
• Additional incentives for businesses promoting high-skilled labor, advanced technology, clean energy, and high-value asset investments
• Implementation of the special EECa Visa allowing foreign talents to reside and operate businesses within the aviation zone
• Reductions in lease registration and property transfer fees, alongside feasibility studies for cruise and yacht marinas

In addition, the framework adjusts several regulatory guidelines to match operational realities, including tax and duty exemptions for consumption and business operations within the Free Trade Zone. Regulations for importing, maintaining, and storing racing cars, classic cars, and private collections will also be further formulated by the EECO in collaboration with relevant agencies.