The main government agency in Thailand promoting investment possibilities is the Board of Investment (BOI). The BOI provides incentives to its certified enterprises in the form of significant tax breaks, loosening of limits on foreign equity, and more options for foreign entities to buy land. Note that, the BOI wants to advance business and technology in Thailand and boost economic growth through these incentives. This article intends to explain to you the process to succeed to get Thailand Board of Investment Promotion.
Certain tax and non-tax benefits may be available to BOI encouraged businesses. Foreign investors who would otherwise be subject to strict laws and restrictions when conducting commercial activities in Thailand may find these advantages to be particularly alluring.
Tax Incentives
BOI Promotion helps businesses reduction in taxes on dividends paid to shareholders, an exemption or reduction of import charges for raw materials. Additionally, they enjoy an exemption or reduction of corporate income tax for up to eight years. Furthermore, there are deductions for the expenditures of installing the project’s infrastructure, transportation, energy, and water are further tax benefits.
Non-Tax Incentives
A company with BOI promotion can hire foreign skilled and talented workers without needing to hire four Thai employees for every foreign worker because of non-tax privileges. Through its “One-stop Visa” process, the BOI also offers a fast route for non-immigrant visas and work permits. Additionally, 100% foreign ownership of the business is allowed due to non-tax advantages. Additionally, international businesses are also allowed to own real estate in Thailand.
Eligibility
Now as you are knowing about the benefits of obtaining a BOI Promotion, you must also have the idea of the eligibility parameters of the same. For your information, the following are the eligibility requirements for businesses applying for a BOI promotion:
1. Have a minimum capitalization of 1,000,000 Thai Baht;
2. Must have three registered shareholders or more;
3. Have a Thailand business registration; and
4. Submit an application in an eligible industry that is acceptable by the BOI.
Eligible Industries
Industries or activities that are eligible for Thailand Board of Investment Promotion includes the following:
1. Agriculture and Agricultural Products
2. Mining, Ceramics and Basic Metals
3. Light Industry
4. Metal Products, Machinery and Transport Equipment
5. Electronic Industry and Electric Appliances
6. Chemicals, Paper and Plastics
7. Services and Public Utilities
8. Technology and Innovation Development
For more information on eligible activities to get BOI Promotion in Thailand, check here.
How to get Thailand Board of Investment Promotion?
For a BOI promotion application to be successful, there are seven necessary stages. Companies should always make sure to get legal guidance before applying for a BOI promotion certificate because of the complex process.
Step 1 – Application Submission
Companies must submit application forms according to their industry. These forms are accessible through the BOI’s e-investment platform or in person at the BOI’s headquarters in Bangkok.
Typically, the information needed by the BOI is as follows:
- The total amount of registered capital and the ways in which the company plans to use the investment to grow its business.
- Details regarding the company’s project
- Information about staff, such as the amount of international and Thai workers the company plans to hire
- Information on the qualifications and experience of the management team
- The company’s projected earnings and expenses over the first three years.
Step 2 – Project Evaluation
Business owners must schedule an interview with regulators within 10 working days after submitting all required paperwork. This interview usually takes place with the BOI officer in charge of the company’s account.
Moreover, depending on their company type, companies may have to attend a second interview with pertinent government organizations.
The BOI will review the application and assess the company’ project after the interview(s). Depending upon the amount of investment, BOI evaluates and considers the company’s application. On occasion, the BOI could ask the applying company for extra details.
Step 3 – Approval / Rejection
Within 40 to 90 days of receiving the application, the BOI will let the company know about the status of approval. However, the amount of the investment value typically determines the time period as follows:
- Within 40 working days of the acceptance of application, investments worth less than 200 million Thai Baht receives the BOI Promotion.
- From 60 working days of receiving the necessary documentation, the subcommittee will consider investments worth 200M–2B THB.
- Within 90 working days of the application’s filing, the subcommittee must consider and approve investments worth more than 2 billion Thai Baht.
Step 4 – Company Registration
The requesting business must create a Thai company within six months of the approval of its application in order to acquire the BOI promotion certification. Additionally, the Office of the Board of Investment must receive specific paperwork, such as:
- Application form for BOI promotion certification
- Company registration certificate
- Memorandum of Association
- List of shareholders
- Investment certificate by the bank of Thailand or evidence of transfer of funds from a foreign country
- A technology transfer contract, franchise agreement and/or JV contract
- A form including all human resource requirements
Step 5 – BOI Certificate
After the company has filed all required paperwork and finished the registration process in Thailand, the BOI will issue the investment promotion certificate within ten working days. The certificate will often list a few requirements that the business must adhere to.
Step 6 – Visa and Work Permit
The business must be registered in the e-expert system after receiving a BOI promotion certificate. This must be completed before any overseas staff are hired. Following acceptance, the international applicants may use the BOI “One-Step” method to apply for a work permit and a visa.
Step 7 – BOI Progress Report and Compliance
Once the business receives its BOI promotion certificate, it must make sure that all BOI rules are followed. This entails submitting consistent reports to the BOI within the timeframe listed below:
- Import the machinery and equipment within 30 months to qualify for the reduction in taxes and charges.
- Within 36 months, complete construction of the business or factory, including the installation of all machinery and equipment.
In the event that these operations are stopped, the company is required to request approval from the BOI. In addition, the BOI must grant written consent if a corporation wants to sell, lease, transfer, mortgage, or use machinery that was imported with a lower or waived duty rate for an unapproved purpose.
However, companies with BOI Promotion must also make sure to abide by Thai accounting and reporting laws. Therefore, this involves adhering to annual audits, withholding tax, value added tax, and reporting requirements for the Social Security Fund.
Therefore, to get assistance and guidance throughout the process, go for a free session of consultation with us. You can also email us at [email protected] to avail our service of BOI Registration in Thailand.
