BOI Thailand
What is the BOI?
The Board of Investment or BOI is an agency set-up by the government to provide investment incentives to foreign or local investors that invest in promoted or priorities activities.
The two main objectives of the BOI are to decentralize Thailand Industrial’s base and to attract special types of investment (priority activities).
How are incentives attributed by the BOI?
The amount and types of incentives that you may receive will depend of how well your investment fit the governmental goals. If you invest into an activity which is deemed priority and that in addition you locate the investment in the north-east you will receive maximums benefits from the BOI.
On the contrary if you invest into a non-priority activity in Bangkok you will receive the minimum benefits or incentives only.
What are BOI key incentives?
Key investment incentives provided by the BOI range from tax holidays; relief from or reduction of import taxes duties on both machinery and raw or essential materials imported; deduction of transportation, electricity and water costs deduction of project’s infrastructure installation.
The Board of Investment (BOI) of Thailand is a government institution that shall incentivize foreign and local entrepreneurs to invest in industries that are regarded as important and beneficial for Thailand.
· Offers an attractive and competitive package of tax incentives.
· Imposes no foreign equity restrictions on manufacturing activities or on some service.
· Provide assistance in the provision of visas and work permits to facilitate entry and subsequent operation for a foreign-owned business.
· Waives restrictions on land ownership by foreign entities.
· Foreigner can hold 100% share in the company
The board of investment (BOI) may decide on its own criteria and judgments which industries are worth promoting and formulate the privileges to be given to such desirable investments.
The industries that are promoted by the board of investment (BOI) are (currently) chosen based on the following criteria:
· The industry is critical and beneficial to the economy, society and security of the Kingdom of Thailand
· The industry manufactures export products that can bring foreign currencies to the Kingdom of Thailand
· The industry employs labor at a high rate
· The industry utilizes agricultural products or natural resources as raw material
The Board of Investment (BOI) has taken decentralization as a prime scheme to promote investments. Therefore, the board is giving companies who invest in less developed areas special tax and non-tax incentives. To be eligible for special incentives, the board has separated the provinces of the Kingdom of Thailand into 4 groups which resemble similar development stages measured by earnings and primary facilities.
Under the promotion of the BOI, the selected industries will normally be provided with several privileges such as duty free for imported machinery, 8 years exemption of corporate income tax, etc.
In order to have working privilege under Thailand Board of Investment (BOI), foreign experts and skilled workers have to follow the Investment Promotion Act 1977, which has already been amended for several times. Importantly, there are two main sections involved:
1) Section 24 is the permission for foreign nationals to entry into the Kingdom for the purpose of studying investment opportunities or performing any other act benefiting investment. Foreign experts and skilled workers are allowed to stay in Thailand from 3 to 6 months since the companies where they work or own have not yet received the Investment Promotion Certificate.
2) Section 25 is the permission to foreign nationals who are skilled workers, experts, spouses and dependents of foreign experts and skilled workers in such number and for such periods of time. The foreign experts and skilled workers will be allowed to stay in Thailand from 1 to 2 years since the companies where they work or own have already received Investment Promotion Certificate. The permission periods either 1 or 5 years will base on the kind of activities which stated in Investment Promotion Certificate of the companies.
