Thailand: VAT exemption granted to promote data center businesses
A VAT exemption measure for data center business operators
A VAT exemption measure for data center business operators
The Thai Cabinet approved a value added tax (VAT) exemption measure for data center business operators effective 9 November 2022.
As a result of the exemption, income derived from providing the following data center-related services are exempt from VAT:
- Provision of server space and related devices for use in data storage and data processing as well as electronic data connections via internet network
- Provision of the following services to support those services
- Data back-up services for prevention of problems that may cause data damages
- Network connection services for internet or cloud service providers
- System management and information technology security services
In order to receive the VAT exemption, data center operators must submit an application to the Director-General of the Thai Revenue Department (TRD) within five years of the 9 November 2022 effective date.
KPMG observation
Operators who wish to submit an application must also meet the following qualifications:
- Be a company or juristic partnership established under Thai law
- Be a VAT registrant
- Granted with a promotion in data center business under the investment promotion law or the law governing the enhancement of national competitiveness for targeted industries, or other laws as prescribed by the Director-General of the TRD
- Comply with procedures, methods and conditions prescribed by the Director-General of the TRD
The list is not definitive as the Director-General of the TRD is allowed to prescribe additional procedures and conditions for data center operators compliance.
Read a November 2022 report prepared by the KPMG member firm in Thailand
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