What Investment from the BOI Thailand Actually Means
If you are looking to start a business in Thailand, one of the best organisations to contact is the Office of Board of Investment (BOI) which operates under the Department of Industry which encourages investment in Thailand. There are a number of ways that the BOI can help a new business in Thailand, and you can check out the write-up from one of our friends who took his business through this process.
Enhancing Competitiveness and Investment Facilitation
- 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.
Business Support Services
- Provides comprehensive information and advice on establishing operations in Thailand.
- Arranges site visits.
- Identifies potential suppliers, subcontractors, joint-venture partners.
- Provides useful contacts with key public and private organizations.
- Coordinates between the foreign business community and other public agencies
Details on all of these areas can be found on the BOI’s website (www.boi.go.th) but a brief overview of the various incentives, something that new businesses are most interested in is given below:
- Exemption/reduction of import duties on machinery.
- Reduction of import duties for raw or essential materials.
- Exemption of juristic person’s income tax and dividends.
- A 50 percent reduction of the juristic person’s income tax.
- Double deductions from the costs of transportation, electricity and water supply.
- Additional 25 percent deduction of the cost of installation or construction of facilities.
- Exemption of import duty on raw or essential materials for use in production for export.
- Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities.
- Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.
- Permit to own land.
- Permit to take out or remit money abroad in foreign currency.
- The State will not nationalize the activity of the promoted person.
- The State will not undertake a new activity in competition with the promoted person’s
- The State will not monopolize the sale of products similar to the promoted person’s.
- The State will not impose price controls on the products of the promoted person’s.
- The State will grant permission to export at all times.
- The State will not allow any government agency, government organization or state enterprise to import any kind of the product being produced by the promoted person into the Kingdom by granting import duty exemption.
- To charge extra import fees into the Kingdom on products similar to those produced by the promoted person at a rate not exceeding 50 percent of the price of overseas insurance and freight charges, effective for a period of not more than one year.
- In the case of where the Board is of the opinion that Section 49 is inadequate for protecting the activity of the promoted person. It will increase the measure by banning the import of products similar to the local productions
- In the case where the promoted person encounters any problem or obstacles in the course of carrying out the promoted activity, the Chairman will have the power to render any appropriate assistance.
*(Source: Office of the Board of Investment)
The information provided is correct at the time of writing but is subject to change. It is always advisable to speak to an expert to get correct, up to date advice prior to commencing your business.