BOI
Investment promotion is one of the measures aimed at attracting foreign investment in Thailand. A main governing body which is responsible for the investment promotion in Thailand is Board of Investment (BOI).
In order to promote the investment in the country, Board of Investment (BOI) provides incentives to entrepreneurs which can be divided into 2 main types:
Tax incentives
Non-tax incentives
Tax Incentives Granted to Entrepreneurs are as follows;
Exemption or 50% reduction of import duty on machinery.
Exemption of corporate income tax for 3 years or up to 7-8 years for investments located in the designated areas.
Exemption of import duty on raw material imported for use in production for export for 1-5 years depending on areas of factories.
Double deduction for transportation, electricity and water costs for 10 years when activities start to generate revenue.
Deduction of 25% from the net investment of the cost of the project’s infrastructure installation or construction.
Non-Tax Incentives Granted to Entrepreneurs are as follows;
Permission for foreigners to hold 100% of company shares, excluding the activities stated in List 1 under Foreign Business Act or as specifically stipulated by other laws.
Permission to bring skilled workers and experts as well as accompanying spouses and dependents of such skilled workers and experts into Thailand. Those skilled workers and experts will be permitted to work in investment promoted activities for the period of time as Board of Investment (BOI) may deem appropriate.
Permission to be entitled to own land to operate the promoted activities. Apart from being used for factory construction, such land can be used for offices as well as residence for staff members only for the promoted activities. If such land is aimed for other purposes or for other persons to use, it shall be first permitted by Board of Investment (BOI).
A promoted person or investor in the promoted activities with complete qualification as stipulated by the law whose domicile is outside Thailand shall be granted permission to take out or remit abroad money in foreign currency.
However, such incentives also depend on types of the activities and conditions of the investment promoted projects.