In addition to the recently approved flood relief loans by the Thai Cabinet, the
Thailand Board of Investment (BOI) has offered tax relief measures to its
promoted companies operating in Industrial Zone 1, Zone 2 and Zone 3 which were
really affected, might be affected or were not affected by the present flooding.

1. For flood-affected BOI-promoted companies

General measures particularly the corporate income tax (CIT) exemptions/reductions are
being granted to BOI-promoted companies that have been affected by floods and for
those who wish to invest in temporary manufacturing facilities or in new
projects to restore their businesses in Thailand. Such tax relief incentives
for each Industrial Zone are as follows:

Zone	Current tax incentive	New tax incentive
		Investment in the same province affected by flooding	Investment in new zone
Zone 1 (Outside Industrial Estate Zone)	No CIT exemption	CIT exemption for 8 years (without cap)	CIT exemption for 8 years (with cap)
Zone 1 (Inside Industrial Estate Zone)	CIT exemption for 3 years	CIT exemption for 8 years (without cap)	CIT exemption for 8 years (with cap)
Zone 2 (Outside Industrial Estate Zone)	CIT exemption for 3 years	CIT exemption for 8 years (without cap)	CIT exemption for 8 years (with cap)
Zone 2 (Inside Industrial Estate Zone)	CIT exemption for 7 years	CIT exemption for 8 years (without cap) and 50% CIT reduction for 3 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 3 years
Zone 3 (Outside Industrial Estate Zone)	CIT exemption for 38years	CIT exemption for 8 years (without cap) and 50% CIT reduction for 5 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years
Zone 3 (Inside Industrial Estate Zone)	CIT exemption for 8 years and 50% CIT reduction for 5 years	CIT exemption for 8 years (without cap) and 50% CIT reduction for 5 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years
Zone 3 (Special Zone)	CIT exemption for 8 years and 50% CIT reduction for 5 years	CIT exemption for 8 years (without cap) and 50% CIT reduction for 3 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years

Customs duty exemption on imported machinery is also being granted to BOI-promoted
companies in all zones. Companies must submit their applications to the BOI
within the year 2012.

2. For new or existing BOI promoted companies not affected by the floods.

In order to maintain and gain more investors, tax incentives are also being
granted to new or existing BOI-promoted companies not affected by the flooding
and who wish to invest in new projects or expand current investment projects in
Thailand. Such corporate income tax (CIT) exemptions/reductions for each Industrial Zone are as follows:

Zone	Current tax incentive	New tax incentive
Zone 1 (Outside Industrial Estate Zone)	No CIT exemption	CIT exemption for 8 years (with cap)
Zone 1 (Inside Industrial Estate Zone)	CIT exemption for 3 years	CIT exemption for 8 years (with cap) and 50% reduction for 3 years
Zone 2 (Outside Industrial Estate Zone)	CIT exemption for 3 years	CIT exemption for 8 years (with cap)
Zone 2 (Inside Industrial Estate Zone)	CIT exemption for 7 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years
Zone 3 (Outside Industrial Estate Zone)	CIT exemption for 8 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years
Zone 3 (Inside Industrial Estate Zone)	CIT exemption for 8 years and 50% CIT reduction for 5 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years
Zone 3 (Special Zone)	CIT exemption for 8 years and 50% CIT reduction for 5 years	CIT exemption for 8 years (with cap) and 50% CIT reduction for 5 years

Exemption on customs duty for imported machinery is also being granted for all zones. Companies must submit their applications to the BOI within the year 2012.

3. For specific businesses affected by the flooding

Automotive manufacturers in all zones are exempted from corporate income tax for 5 years with the tax exemption equal to 100% of investment (excluding land and working capital).

Meanwhile, for “eco car” manufacturers, the current corporate income tax exemption scheme already grants the maximum tax incentives and so there is no change.

For other industries, the BOI board will consider relief measures on a case-by-case basis.

4. For BOI promoted industrial estates/industrial zones operators affected by flooding

The BOI-promoted industrial estates/industrial zones operators wishing to invest in flood prevention infrastructure in the future, whether in current areas or zone extensions, will be granted a corporate income tax exemption equal to 200% of the investment (excluding land and working capital), valid for eight years.