Thailand / Prathet Thai: Data centers to receive VAT exemption in Thailand to energize investment
Sep 13, 2022 | Posted by MadalineDunn
In a move intended to encourage greater investment in data centers in Thailand, the Thai cabinet has approved the draft Royal Decree regarding data centers receiving a tax (VAT) exemption. At present, Thai VAT is levied at the rate of 7%.
The decision, made to facilitate the country becoming a regional digital hub and encourage more competitive pricing of data hosting services, means that VAT will be exempt for the following:
a) Services for servers or related equipment for storing, processing and connecting electronic data via the internet; or
(b) Disaster recovery sites, connection with internet service providers or cloud service providers, and systems management and securities services as supporting services of the services in item (c) The registrant applying for the VAT exemption must also be a data center business operator with qualifications and must comply with all rules, procedures, and conditions prescribed by the Director-General of the Revenue Department.
(d) The application must be filed within five years after the decree is effective.
Speaking about the decision to implement VAT exemption, Lavaron Sangsnit, director-general of the Revenue Department, said that the Revenue Department of the Ministry of Finance has “recognized the importance of the data center industry and data hosting service which are growing rapidly.”
The decision, made to facilitate the country becoming a regional digital hub and encourage more competitive pricing of data hosting services, means that VAT will be exempt for the following:
a) Services for servers or related equipment for storing, processing and connecting electronic data via the internet; or
(b) Disaster recovery sites, connection with internet service providers or cloud service providers, and systems management and securities services as supporting services of the services in item (c) The registrant applying for the VAT exemption must also be a data center business operator with qualifications and must comply with all rules, procedures, and conditions prescribed by the Director-General of the Revenue Department.
(d) The application must be filed within five years after the decree is effective.
Speaking about the decision to implement VAT exemption, Lavaron Sangsnit, director-general of the Revenue Department, said that the Revenue Department of the Ministry of Finance has “recognized the importance of the data center industry and data hosting service which are growing rapidly.”
0 Comments