Criteria for BOI Project Approval for Agricultural Products

International investments in the Thai agricultural sector have witnessed more concentration in the manufacturing of agricultural products and in food processing. In order to encourage more foreign investment in this sector the Board of Investment is ensuring incentives and privileges. However, to get promoted by the BOI you must know whether your project will be approved. Here’re the criteria for BOI project approval in agriculture products;

1. The value added of the assignment should not be less than 20% of the revenues, apart from the projects in agriculture and agricultural projects, coil centers and electronic products.
2. Modern production technique should be used.
3. All new machinery must be used. However, when it comes to imported used machinery, the criteria is as follows;
   1. Used machinery not over 5 years old, calculating from the manufacturing year to the importing year, the machines can be used in the assignment and counted as the investment capital for calculating cap on the corporate income tax exemptions. Moreover, a machinery performance certificate issued by an institute identifying efficiency, energy usage for the machine, and environmental impact, plus its fair value should be obtained.
   2. Used machinery over 5 years old but not more than 10 years old, calculating from the manufacturing year to the importing year. In that case only press machines shall be used and counted as investment capital for the calculation of the cap on corporate income tax exemptions. Well then they shall not be granted import duty exemption. Additionally, a machinery performance certificate should be issued by a trusted institute identifying efficiency, energy usage and environmental impact, so on and so forth.
   3. Used machinery over 10 years old, considered from the manufacturing year to the importing year, may be allowed to be used in the project for sea and air transport activities and molds and dies, as held appropriate, and calculated as investment capital for cap on the corporate income tax exemptions and permitted machinery import duty exemption.

Apart from these, your project must ensure environmental protection. Adequate and efficient guidelines and measures should be undertaken to protect environmental quality and to lessen environmental impact. You will need to submit environmental impact assessment reports that must comply with the environmental laws and regulations.