Board of Investment

In 1997, the Thai government established the Board of Investment (BOI) to provide investment incentives for both foreign and local entrepreneurs who are interested in investing in the agency’s promoted activities.

To do this, investment promotion policies were adjusted in order to attract more businessmen; decentralize Thailand’s industrial base and respond to future economic situations.

Thailand BOI has formulated criteria for projects applying for incentives and privileges. These depend on the location of the promoted activities and whether these are priorities or not.

Board of Investment Privileges

Two of the most significant privileges offered by the BOI for promoted projects are:

  • Tax privileges such as corporate income tax exemption, tariff exemption or reduction on import machinery and tariff exemption or reduction on import raw material
  • Non-Tax privileges such as permission to own land, permission to bring foreign expert to work on the promoted projects, exemption on foreign ownership of companies and exemption from work permit and visa rules.
Board of Investment Non-Tax Privileges

Regardless to locations and activities, Non-Tax privileges are available to all BOI-promoted projects. The BOI helps investors in three ways:

  • Reduce the risks associated with investment
  • Reduce initial investment costs and to improve the rate of return on investment
  • Support services at all times

Sending applications to the Thailand BOI is best done through a Thai law firm as it is a very complex procedure. For more detailed information, please contact us through our numbers listed below.
Our staff of local and foreign lawyers will provide you with a detailed information on the subject matter.

What is BOI?

In 1997, the Thai government established the Board of Investment (BOI) to provide investment incentives for both foreign and local entrepreneurs who are interested in investing in the agency’s promoted activities.

To do this, investment promotion policies were adjusted in order to attract more businessmen; decentralize Thailand’s industrial base and respond to future economic situations.

Thailand BOI has formulated criteria for projects applying for incentives and privileges. These depend on the location of the promoted activities and whether these are priorities or not.

Board of Investment Privileges

Two of the most significant privileges offered by the BOI for promoted projects are:

  • Tax privileges such as corporate income tax exemption, tariff exemption or reduction on import machinery and tariff exemption or reduction on import raw material
  • Non-Tax privileges such as permission to own land, permission to bring foreign expert to work on the promoted projects, exemption on foreign ownership of companies and exemption from work permit and visa rules.
Board of Investment Non-Tax Privileges

Regardless to locations and activities, Non-Tax privileges are available to all BOI-promoted projects. The BOI helps investors in three ways:

  • Reduce the risks associated with investment
  • Reduce initial investment costs and to improve the rate of return on investment
  • Support services at all times

Sending applications to the Thailand BOI is best done through a Thai law firm as it is a very complex procedure. For more detailed information, please contact us through our numbers listed below. Our staff of local and foreign lawyers will provide you with a detailed information on the subject matter.

BOI Procedure
Procedures for Obtaining Promotional Privileges

The chart that appear on this and the following pages identify, in detail, the procedural aspects of applying for BOI privileges. The major steps along the road to approval are:

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Action Required After a Project is Approved for Promotion
  • The OBOI will inform the applicant in writing within 7 working days of the approval date, detailing the conditions, privileges and benefits granted. An application form for the promotion certificate will be attached, together with the notification of approval
  • Upon receipt of the OBOI letter approving the project, the applicant must reply by completing the form of promotion acceptance and sending it back to the OBOI within one month. If any changes or special conditions and privileges are sought, they should be requested at that time
  • If the applicant is unable to reply within the stated time limit, a letter of clarification should be sent to the OBOI, which will consider extending the deadline by not more than one month at a time, up to a maximum of three times
  • In order to receive the investment promotion certificate, the applicant must set up the company within six months of accepting the approval, and submit all of the following documents to the OBOI:
  • Application form for promotion certificate
  • The memorandum of association
  • The certificate of business registration
  • A certificate stating the registered capital, a list of directors indicating those empowered to bind the company, and the address of the head office
  • A list of the shareholders and their nationalities
    A document showing the transfer of funds from overseas, or a certificate of investment from overseas issued by the Bank of Thailand for foreign investors
  • A joint venture contract, licensing agreement, technical assistance contract and/or technology transfer contract (if any)
  • Form of utility and manpower requirements.

If the applicant is unable to submit the documents within the required time frame, an explanatory letter must be sent to the OBOI, which will consider extending the deadline by four months at a time, up to a maximum of three times

The OBOI will issue the investment promotion certificate after receipt of all specified documents, and the promoted company must follow the conditions laid out in the Certificate.

If there are any discrepancies or errors, or if an amendment is sought, the OBOI must be notified in writ- ing, with all relevant documents attached.

BOI Promoted Activities

To consider whether the activity is eligible for the BOI privileges, Thailand BOI has listed the activities in many categories. Please note that the same activities located in the different area are entitled to receive varying level of privileges.

 

The promoted activities are divided in seven categories as follows:

  • Agriculture and Agricultural Products;
  • Mining, Ceramics and Basic Metals;
  • Light Industry;
  • Metal Products, Machinery and Transport Equipment;
  • Electronic Industry and Electric Appliances;
  • Chemicals, Paper and Plastics;
  • Services and Public Utilities.

 

The above categories are further divided into specific activities within the categories. Contact us for more details with regards to promotions by the Thai Board of Investment.