In 2023 the World Health Organization ranked Thailand as one of the top countries in Asia with high medical and healthcare service capabilities. The private medical sector is one of the fastest growing business activities within the Thai economy and it is attracting a pool of foreign investments from all around the world. H&P Bangkok lawyers have prepared this legal summary about the implementation of this business model under the umbrella of Thailand Board of Investment or BOI.
During these past few years, Thailand Board of Investment BOI enhanced the Thai medical industry and promoted Thailand as a medical hub in Asia, including hospital, clinics and manufacturing facilities of medicines or medical devices.
Thailand Board of Investment realized the value of the medical industry and understood from the beginning that this industry plays a key role and has exponentially surge in the past few years. The main three businesses in the medical industry are as follows:
1. Manufacture of other medical devices
2. Manufacture of modern and traditional medicines.
3. Hospital business
On this regard H&P Bangkok lawyers will discuss the following type of businesses and benefits such as dietary supplements, medicines, medical devices, drugs, clinical research, and health recovery.
1. Non-Woven Fabric production business or hygiene products from Non-Woven Fabric.
-Non-Woven Fabric manufacturing businesses such as Spunbond or Meltblown, etc., used as raw materials for producing masks or medical equipment, are eligible for corporate income tax exemption for 5 years.
-Other Non-Woven Fabric manufacturing businesses or hygiene products made from Non-Woven Fabric receive corporate income tax exemption for 3 years.
2. Manufacture of medical devices or parts.
-Manufacture medical devices classified as high risk or high technology, such as X-Ray machines, etc are eligible to receive privileges such as corporate income tax exemption for 8 years.
-Manufacture of other medical devices can receive 5-year corporate income tax exemption.
-Manufacture of medical devices from various fabrics or fibers, such as gowns, can receive a 3-year corporate income tax exemption.
3. Medical food production business or food supplements.
-The Food and Drug Administration or FDA must register the business to comply and meet international standards. These categories can receive privileges such as corporate income tax exemption for 8 years.
4. Medical service business.
-Specialized medical center business can get 8-year corporate income tax exemption.
-Hospital business can get 8-year corporate income tax exemption
-Businesses transporting patients, doctors, or medical equipment (air, land, or ship) receive 5-year corporate income tax exemption privileges.
-Elderly hospital business obtain benefits such as corporate income tax exemption for 5 years.
-Elderly care center businesses or those dependents can receive 5-year corporate income tax exemption.
-Thai traditional medicine public health service business can receive 5-year corporate income tax exemption.
5. Manufacture of drugs.
-Manufacture of active ingredients in pharmaceuticals can receive 8-year Corporate Income Tax exemption privileges.
-Manufacture of drugs under the Mong Pao Drug List can obtain 8-year corporate income tax exemption.
-Production of modern and traditional medicines can receive 5-year corporate income tax exemption.
6. Clinical Research.
-Clinical research support and management business is eligible to receive Corporate Income Tax exemption for 8 years.
-Clinical Research Center is eligible to receive Corporate Income Tax exemption for 8 years
7. Health rehabilitation center business.
-Use medical technology to heal and restore health. This category can obtain non-tax benefits.
Finally, recently the Thai Government announced on June 2023 the plans to invest 5.1 billion Thai Baht to create the “Andaman International Health Center” in Phuket bringing an excellent opportunity for foreign medical companies interested to invest in Thailand.
We strongly recommend to engage a law firm with proven experience working with BOI to be able to assist you and commit to the success of your business for the medical sector in Thailand. H&P recently advised two foreign pharmaceutical companies with operations in Thailand in the sector of manufacturing animal health products and medical drugs for humans.
If you need to consult with a law firm in Thailand about BOI promotion for the medical sector, please contact our lawyers in Bangkok at [email protected]
