BOI registration for your business in Thailand is very essential, especially if you are a foreign investor. Thailand Board of Investment (BOI) encourages foreign direct investment by announcing schemes and offers in favour of the same. The board is actively in the pursuit to bring in investments to the nation endeavouring national growth and high ROI.
The COVID-19 crisis completely flipped the business landscape upside down on a global scale. For this reason, the most promising and rich travel and tourism industry of Thailand suffered from a 63% downfall in the last fiscal. But lately, the nation has started recovering from the retardation significantly.
One of the major reasons behind this recovery process is the eagerness of BOI Thailand to attract FDI. Although there was a big vacuum in BOI registration of foreign businesses due to closed international borders, yet, now it is possible. Yes, now it is possible for foreign businesses to go for BOI registration in Thailand.
There is another great news to make you happy. BOI Thailand has announced COVID-19 Economic Stimulus Packages for foreign investors as well. So, you can apply for BOI registration and can avail the benefits of the new package announced by BOI.
The BOI approved a set of stimulus packages aimed at attracting local and foreign investment. It is done to support the intent of the government to accelerate Thailand’s economic recovery from the COVID-19 pandemic. The additional investment incentives, planned for 2021, include a range of sector- and project-specific stimulus initiatives.
BOI Registration Benefit 1: Additional Tax Incentives for Large Scale Industries
Projects in target industries that invest at least THB 1 billion (US$33 million) over a 12-month span are eligible in this segment. The process starts with the issuance of the BOI promotion certificate, making such businesses eligible for a 50 per cent additional corporate income tax (CIT) deduction for a period of five years.
It is additional to the regular 5–8 year CIT exemptions provided under the usual BOI tax-incentive scheme. Eligible projects must apply to the BOI for this special tax incentive from January 4 to December 30, 2021.
BOI Registration Benefit 2: Stimulus Package for Software and Digital Industry
Projects promoting digital technology adoption like software integration, artificial intelligence, machine learning or big data analytics are eligible for this package. Similar projects qualify for additional 3 years of 50 per cent CIT exemption on the income produced.
Eligible projects must apply for the benefits of the Stimulus Package within December 30 2021.
BOI Registration Benefit 3: Application Deadlines Extension
BOI Thailand covers more than 300 investment promotion categories relating to special economic zones, with both tax and non-tax incentives. It also includes an additional tax incentive for target sectors such as textiles, agriculture, home furnishings, jewellery, and others. These benefits are open to projects located in Thailand’s border regions, including the country’s ten special economic zones, and the BOI is accepting applications until the end of 2022.
The BOI has also extended the deadlines for five southern provinces (Narathiwat, Pattani, Satun, Songkhla, and Yala) by two years. The Board has extended the total time for investment projects to the end of 2022.
Good News for Projects in Genomics Industry
Thailand estimates that Genomic Industry has the potential to generate THB 70 billion (US$ 2.35 billion) annual growth. The government has recognized the industry to enable advances such as embryo analysis during in-vitro fertilisation (IVF), precise cancer diagnosis, and production of novel drugs, vaccines, and biological products.
The BOI has given the Genomics Thailand project, which is based at Burapha University in the EEC, the same status as other special EEC zones such as the EEC of Innovation, Digital Park Thailand, and the Energy Efficiency and Conservation Authority. The same additional BOI tax incentives will be available to investors in this new genomics economic zone as they are to other EEC investment ventures.
Your Take!
BOI Registration in Thailand is possible now. By applying for the same, you not only get entry to one of the rich markets of the world but can also avail yourself benefits as mentioned above. Prepare your strategies, align them with the BOI strategic outlines to match the eligibility requirements.
What you can fall short of is proper legal guidance and assistance. In that case, we can happily help you. Mail us at [email protected] for a free consultation session. We are one of the premier Law Firms located in Bangkok with a 99% client retention rate since inception.
