How to apply for BOI merit-based incentives in Thailand? 

Wondering how to apply for BOI merit-based incentives? Here’s how you can get it done. But before that, you must know properly what it is. Merit-based incentives are privileges considered for the grant by the Thai Board of Investment. Such incentives have been introduced to encourage more competitiveness in Thailand. However, merit-based incentives in Thailand include extended tax holidays, additional deductions on some expenditure and additional corporate income tax exemptions.

Applicant should begin by checking their eligibility under the BOI scheme. They must know whether they come under the Activity Group A or B.

For Group A, there are two options;

Companies promoted by the BOI with CIT exemption are eligible to submit application in order to receive additional rights or privileges from the merit-based activities;

Submit application together with investment promotion application;

For Group B;

The application that is to derive additional rights and privileges from the merit-based activities should be submitted with investment promotion application only.

On the BOI approving the application and granting the additional rights or privileges from the merit-based activities, the company must submit an application to amend the already existing project, when substantial amendments to the approved project are made already.

Calculate the CIT amount exempted

Group A

The additional CIT amount exempted is calculated on the expenditure incurred on the day of submission of the application via the corporate income tax exemption privilege.

Group B

The additional CIT amount exemption must be calculated from the expenditure incurred within the span of three years considered from the submission date of the merit-based application.

However, if the BOI promoted company receives tax holiday of 8 years, the merit-based incentive will not prolong the tax holiday period.