Is BOI promotion an option for your business in Thailand?
To encourage foreign investment into Thailand, the Board of Investment (BOI) offers a range of incentives for foreign businesses that qualify. Activities and projects that meet investment, structural, and operational criteria receive such benefits as corporate tax holidays, import duty exemptions, land ownership and work permit waivers for foreign employees to name a few.
BOI promotion is not just for manufacturing
Previously, the BOI concentrated on heavy manufacturing, promoting industries that would bring in factories and expand industrial estates across the country. Now, the BOI has expanded its focus to attract sectors involving more advanced technologies and service businesses, such as R&D for medical devices and incubators for digital industries. With a stated government objective of Thailand 4.0, foreign investment with the purpose of developing Thailand’s digital economy may find BOI promotions available to them.
BOI incentives can be generous
Every foreign investor should find the basic incentives granted with BOI promotion very attractive. Depending on the business’s BOI activity designation, the incentives could include a tax holiday of up to 10 years and exemption from import duties for machinery and raw materials. There are also non-tax incentives, including land ownership rights and less restriction on hiring foreign employees.
The BOI also offers merit-based incentives if applicants meet additional conditions. These include conducting R&D programs in Thailand and operating BOI activities in specific regions and industrial estates across Thailand.
Foreign ownership rules under the FBA may apply
While BOI privileges are attractive for foreign investment, foreign ownership restrictions still apply if the business falls under List One. Nevertheless, to encourage investment in certain sectors, or under specific cooperation agreements, the BOI may adjust foreign shareholding limits for businesses under its purview.
Considering applying for BOI promotion? GPS can help
GPS Legal has vast experience assisting clients through the BOI application process. From determining which category to apply under all the way to compiling, submitting, and monitoring the application, our team can help you at any or all points. Contact us to schedule your free first consultation.