Thailand’s BOI or Board of Investment is a government agency tasked to provide investment incentives to foreign or local investors putting investments in promoted or priorities businesses in Thailand. The BOI of Thailand aims to decentralize Thailand’s Industrial base and to promote and attract special types of investments allowed in the Kingdom.
Said incentives should be attractive enough for foreign or local investor to operate their business in Thailand and the type and amount of incentives an investor can be entitled with will depend on how well the investment will enhance the government’s business environment. Certain requirements need to be fulfilled in order to qualify for such incentives. Investment made into an activity deemed as a priority and having the business operate in the north-east will entitle the investor to the maximum benefits from the BOI. On the other hand, if investment is categorized as non-priority minimum benefits are given to the investors.
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The BOI approved investment incentives 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, and deduction of project’s infrastructure installation.
Non tax privileges range from foreign majority ownership of the business, foreign freehold land ownership (for industrial related project only), easier work permits and visa proceedings.
The application procedures for obtaining promotional privileges or investment incentives are summarized below:
- Investors to obtain BOI application form for initial studying
- Investors to fill out the BOI application form and prepare the required documents for submission
- Submission of BOI application form along with all required documents
- Follow up status of BOI application within ten working days after date of submission wherein a schedule for presentation and interview will be arranged for the investor with the BOI
- BOI will review and evaluate BOI application after the interview and presentation
- Evaluation will be based on satisfying and complying with investment requirements under three categories:
- Investment value of less than THB 80 million, approval or non approval will be known within 40 working days after application submission
- Investment value of THB 80 – 750 million, approval or non-approval will be known within 60 days from date of application submission
- Investment value of more than THB 750 million, approval or non-approval will be known within 90 working days after documents submission
- Investors will receive notification within 7 working days from the BOI meeting’s resolution adoption date.
- Investors to submit promotion acceptance form within 1 month after receipt of notification.
- BOI will facilitate acceptance of promoted status
- Investors to submit company establishment documents within 6 months after receiving approval
- BOI to issue Promotion Certificate within ten days after receipt of company establishment documents
Company establishment documents which the investor applicant needs to submit to BOI include as per BOI policy includes:
- Application form for promotion certificate
- Memorandum of association
- Certificate of business registration
- Certification of registered capital, a list of directors indicating those empowered to bind the company, and the address of the head office
- List of the shareholders and their nationalities
- Document showing the transfer of funds from overseas, or a certificate of investment from overseas issued by the Bank of Thailand for foreign investors
- Joint venture contract, licensing agreement, technical assistance contract and/or technology transfer contract (if any)
- Form of utility and manpower requirements.