The Board of Investment (BOI) is Thailand’s principal government organization. It uplifts investment opportunities in Thailand. It also offers incentives to its certified companies and aims at increasing economic growth.
The main goal of the BOI is to innovate by developing technology and business in Thailand. Companies promoted by BOI may also enjoy tax and non-tax incentives. Foreign investors get attracted by these incentives may otherwise be subject to strict rules and regulations when conducting business in Thailand.
What are Tax Incentives?
Tax incentives include a deduction in various fields like transportation, water, electricity, and, many more. For up to eight years, a BOI-certified company is eligible for an exemption of Corporate Income Tax, reduction of taxes on dividends paid to shareholders, as well as reduction of import duties for raw materials.
What are Non-Tax Incentives?
Privileges of non-tax incentives allow a company to hire foreign skilled experts without having to hire four Thai employees for each foreign employee. Non-tax incentives provide full ownership of the company. It also provides the option for foreign companies to own land in Thailand.
A company must meet the following criteria to apply for a BOI investment promotion:
A company must possess a capital investment of more than 1,000,000 Thai baht
It should be a registered company in Thailand
A company should have three minimum registered shareholders.
Companies promoted by BOI should also ensure to follow Thai regulations concerning accounting and reporting. This consists of meeting requirements of reporting for Withholding Tax, Value Added Tax, Social Security Fund, and yearly auditing.
To grasp more information regarding the above technical terms, you will for sure need some extra help. Reach out to know more about BOI and investment-related queries with professionals at Interloop.
Comments