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Thailand BOI Incentives for Existing Businesses
01/06/2024
In order to improve Thailand’s position as a leading hub for businesses looking to establish operations in Asia, the Thailand Board of Investment (BOI) has recently unveiled a set of incentives designed to attract and retain integrated business operations within the country.
These new incentives were introduced in February 2024 and are outlined in Announcement No. 3/2567, and offer an attractive opportunity for companies seeking to expand their footprint in the region and capitalise on Thailand’s developing economic landscape.
Key points
- The Board of Investment (BOI) introduced new incentives in February 2024 to attract existing businesses to relocate their integrated operations to Thailand.
- To be eligible, businesses must either plan to invest in a new manufacturing facility in Thailand or already have an existing BOI-promoted manufacturing operation, and demonstrate commitment to establishing a regional HQ and/or R&D centre.
- Key tax incentives include an additional 3-year corporate income tax exemption (max 8 years) for setting up a regional HQ, and 5 additional years for establishing both regional HQ and R&D centre.
- Non-tax benefits include support services and facilitation measures to streamline the relocation process.
- The deadline to apply for these relocation incentives is the last working day of 2024.
What is the Board of Investment (BOI)?
Thailand’s Board of Investment is a special government agency that focuses on promoting foreign investment within Thailand. A BOI promotion removes many barriers to doing business in Thailand, such as the restrictions of the Foreign Business Act.
More detailed information relating to the Foreign Business Act can be found here.
Furthermore, the BOI provides the following incentives for qualifying projects that could offer significant advantages to qualifying companies.
Incentives available include:
- 100% foreign ownership
- Reduced requirements for hiring foreign staff
- Permit to own land
- Streamlined visa and work permit processes
- Permit to remit money abroad in foreign currency
Tax Incentives are available for certain business activities and promotions as well. Examples include:
- Exemption or reduction of import duties
- Exemption of a juristic person’s income tax and dividends
- Double deductions from the costs of transportation, electricity, and water supply
- Up to Eight-year corporate income tax exemptions
For more information about the BOI, please check the following blog posts:
BOI Company Formation in Thailand
What is the Aim of the new Regulation?
The BOIs recent announcement No. 3/2567, was first introduced in February 2024. The Regulation introduces a set of incentives designed to encourage existing businesses to relocate their integrated operations, including manufacturing facilities, regional headquarters, and research and development (R&D) centres, to Thailand from other countries.
The BOI has introduced these measures as a way to continue to refresh the economy and create a business environment to maintain its position as a hub for business expansion and innovation.
What are the BOI Eligibility Criterias?
To qualify for the incentives on offer from the BOI under this scheme, businesses must meet two key criteria.
Firstly, they must be planning to invest in a new manufacturing facility in Thailand or already have a BOI-promoted manufacturing operation within the country.
Secondly, they must demonstrate a commitment to establishing a regional headquarters and/or a research and development (R&D) centre in Thailand.
These eligibility requirements ensure that the incentives are targeted towards businesses that are genuinely invested in enhancing their presence and operations within the Thai market.
What Corporate Income Tax Exemptions are Available?
One of the key incentives on offer from the BOI as part of these regulations is an extended corporate income tax exemption period. Businesses setting up regional headquarters are eligible for an additional three-year corporate income tax exemption on income generated from their manufacturing activities, up to a maximum of eight years.
Similarly, companies establishing both a regional headquarters and an R&D centre may receive an additional five-year corporate income tax exemption period on their manufacturing income, subject to the same eight-year cap.
These tax incentives significantly improve the financial viability of establishing integrated operations within Thailand.
What are the Non-Tax Benefits on Offer?
In addition to the tax incentives, eligible applicants may also receive a range of non-tax benefits, such as those mentioned above. However, it is important to note that the Announcement also included various support services and facilitation measures designed to streamline the relocation process and optimise the business environment. These non-tax benefits complement the tax incentives, further enhancing the appeal of Thailand as a destination for business expansion.
When is the Deadline for Applications?
The deadline for submitting applications for these comprehensive relocation incentives is the last working day of 2024, which is Friday December 27th (New Years Eve and New Years Day are public holidays).
How can Belaws help?
For more information about the BOI in Thailand, why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
What are the BOI incentives for businesses?
The BOI offers benefits to attract businesses to Thailand. These include tax breaks and support services for companies setting up regional headquarters or R&D centres.
Who can qualify for these new BOI incentives?
Businesses looking to invest in new manufacturing facilities or those already operating under BOI promotion can qualify. They must also plan to set up a regional headquarters or R&D centre.
What tax benefits do these new BOI incentives offer?
The new BOI incentives provide extended corporate income tax exemptions for up to eight years, depending on the business setup.
What non-tax benefits are included in the new BOI incentives?
The BOI offers support services to help streamline the relocation process and optimize business operations in Thailand.
When is the deadline to apply for these new BOI incentives?
The deadline to apply for the new BOI incentives is December 27, 2024.
What is the BOI?
The BOI, or Board of Investment, is a Thai government agency that promotes foreign investment by offering various incentives, including the new incentives introduced in February 2024.
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