A Beginner’s Guide to Thailand BOI Opportunities and Privileges

A Beginner’s Guide to Thailand BOI Opportunities and Privileges

Overview of BOI Company in Thailand

Thailand’s rapid-growing economy and market is not the only thing that attracts many foreign investors; a business-friendly environment and full support from the government compel foreign entrepreneurs to open a business in the country. One of the support given by the government is through the Board of Investment or BOI, which offers a variety of tax incentives schemes to the investors.

A Beginner’s Guide to Thailand BOI Opportunities and Privileges

The Thailand Board of Investment is a government entity established in 1997 to encourage foreign investment in the country. The Office of the BOI is a government firm under the Office of the Prime Minister. Its primary obligations are to promote significant investment, which includes local and overseas investment. BOI-certified companies in Thailand can enjoy various benefits. This article walks you through all you need to know about BOI and its opportunities.

BOI company operations and business categories

BOI in Thailand has issued criteria for projects applying for its privileges and incentives, which depends on the promoted operations’ location and its significance. A business needs to fall within either one of the following categories to be eligible for BOI certificate:

  • Agriculture and agricultural products;
  • Mining, ceramics, and basic metals;
  • Light Industry;
  • Metal Products, Machinery, and Transport Equipment;
  • Electronic Industry and Electric Appliances;
  • Chemicals, Paper, and Plastics;
  • Services and Public Utilities; and
  • Technology and Innovation Development.

BOI incentives and privileges

The country has implemented categorization manuals according to the Nice Classification System’s tenth edition. There are a total of thirty-four distinct classifications of products and eight different classifications of services. If a trademark is used for more than one class, the company needs to submit a separate application for every designation.

BOI provides two significant incentives for promoted projects, which include:

  • Tax privileges
    1. Import duties’ exemption or reduction
    2. Exemption of dividends and income tax of a juristic person
    3. Double deduction from the expenses of water and electricity supply and transportation
    4. Eight-year exemption on corporate income tax (CIT) for:
      1. Operations based on knowledge concentrating on R&D and design to improve the country’s competitiveness
      2. Infrastructure activities for the country’s development
      3. Businesses utilizing advanced technology to produce value-added services
    5. Five-year CIT exemption for activities using high technology, which are essential for the development of the country, with some investments already existing
    6. Three-year CIT exemption for businesses with lower technology than previously mentioned, but can add value to local supply-chain and resources
  • Non-tax privileges
    1. Permits to bring skilled labor and experts into the country to work in the investment-promoted operations
    2. Permit to own a land
    3. Permit to remit or take out money overseas in foreign currency
    4. Permit for foreigners to come into the country to study investment opportunities
    5. BOI also introduce various extra and usually sensitive privileges for businesses already running under a BOI certificate

The Office of the BOI shall prescribe the reporting requirement and process. Promoted individuals need to report operating outcomes for their projects to the Office of BOI for review before obtaining the incentives for that year to make sure that: 

  • The CIT incentives are granted and appropriately executed under the promotion conditions
  • A clear investment promotion’s expense-and-benefit assessment

BOI additional investment policies and promotional measures

The BOI has recently offered additional promotional measures and investment policies to promote investments in the country more efficiently. Some of these measures include:

  • Measures for enhancement of production efficiency: The announcement (BOI Announcement No.1/2557) is about promoting and upgrading technology for the conservation of energy, utilization of alternative energy, and environmental effects’ mitigation, as well as to motivate the involvement of R&D and advanced engineering design to boost production efficiency.
  • Investment promotion measures for industrial progress in border provinces of the country’s southern region: This measure aimed to enhance investment in this region and set up model cities. BOI promotes the investment of private industry in the assigned provinces to help locals generate revenue, which would, in turn, result in economic development in the future.
  • Investment promotion measures for Special Economic Zones’ investment ((BOI Announcement No.4/2557): This policy aims to create economic links with neighboring nations and support the ASEAN Economic Community’s integration.

Registration of BOI company in Thailand

Applicants need to register a Thai company to get the BOI investment promotion license. The company establishment must be within six months of approval. They need to prepare and submit the following documents to the offices of OBOI in due time:

  • BOI promotion certificate’s application form
  • Memorandum of association
  • Company registration’s certificate
  • A certificate expressing the registered capital and address, as well the authorized directors
  • List of shareholders
  • Proof of the fund transfer from abroad, or an investment certificate provided by the Bank of Thailand
  • A contract of technology transfer, contract of technical assistance, a licensing agreement, or a JV contract
  • A form defining HR requirements

Seeking professional guidance to register a Thai company

Entrepreneurs and foreign investors intending to set up a BOI-certified company should seek expert guidance from a reputable company registration service provider in Thailand for a smooth and legally compliant business set-up.

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