The Board of Investment (BOI) in Thailand plays a crucial role in promoting investment in specific industries and regions to enhance economic development and diversification. BOI laws and regulations offer a range of incentives and privileges to encourage both foreign and domestic investments in targeted sectors. Here’s an overview of the key aspects of BOI laws in Thailand:
1. Eligibility for BOI Promotion
- Target Industries: The BOI targets industries that are considered beneficial for Thailand’s economic development, including high technology, green energy, medical and healthcare, digital economy, and infrastructure.
- Investment Criteria: Projects must meet specific criteria such as minimum capital investment, technology transfer, and employment creation to qualify for BOI incentives.
2. Incentives Offered by the BOI
- Tax Incentives:
- Exemption or reduction of import duties on machinery and raw materials.
- Corporate income tax exemptions for up to 8 years, depending on the project’s merit regarding innovation, competitiveness enhancement, and environmental impact.
- Non-Tax Incentives:
- Permission for foreign nationals to work and own land in Thailand.
- Easier facilitation for bringing in foreign experts and skilled workers.
- Permission to take out or remit money abroad in foreign currency.
3. Application Process
- Investors need to submit a detailed application to the BOI, outlining the project’s scope, financial projections, and benefits to Thailand’s economy.
- The application is reviewed by the BOI, and if it meets the required criteria, approval is granted along with specified incentives.
4. Obligations and Compliance
- Companies that receive BOI privileges must comply with ongoing requirements, such as regular reporting on the project’s progress and adherence to the terms of the incentives received.
- Failure to meet these obligations can result in the revocation of BOI privileges.
5. Impact on Foreign Ownership
- Under normal Thai law, foreign ownership in certain businesses is restricted. However, BOI-promoted companies can be exempt from these restrictions, allowing up to 100% foreign ownership, depending on the industry and specific incentives.
6. Special Economic Zones (SEZs)
- The BOI also promotes investments in Special Economic Zones located in various regions of Thailand. These zones offer additional incentives, focusing on border trade and economic collaboration with neighboring countries.
7. Smart Visas
- Investors, executives, and high-skilled professionals involved in BOI-promoted projects may qualify for Smart Visas, which provide longer-term residency and other benefits.
The BOI’s incentives significantly enhance the attractiveness of Thailand as an investment destination. For investors, understanding these laws and effectively navigating the application process are critical steps that typically require professional legal and financial advice to ensure compliance and maximization of benefits.