Despite the global economic downturn, foreign investors in Thailand remain optimistic about the country’s future and are willing to support it. They intend to increase and maintain their investments in the investment incentives as well as the industry’s supply chain and raw material availability. The BOI registration statistics illuminate the intent of the foreign investors to invest in the flourishing Thai market.
According to the most recent research of Delloite, 19.33% of the 600 corporations surveyed expressed an interest in increasing their investment in the country. They also expect to keep investing at the same level. Similarly, FDI applications accounted for around 60% of the assignments, with China, Japan, Singapore, the Netherlands, and Taiwan accounting for 53% of the overall investment.
Even in this period of the COVID-19 crisis, foreign investors are ready to play in the Thai market. But before investing, you must register your business for BOI promotions. This will help you get various tax and non-tax benefit as and when announced by the Royal Thai Government.
In this article, we are not going to share details of the legal steps or guidelines for BOI registration in Thailand. We would discuss the multitude of aspects related to the feasibility and viability of the same for foreign businesses in Thailand.
BOI Registration: Common Overview
Owning a business can be a tempting – if daunting – prospect for foreign residents in Thailand. Competitive costs and a favourable business climate are just a few of the benefits, but legal and technical concerns quickly arise for foreigners considering the options. As an extra complication, several aspects of BOI registration alter from year to year as policies are changed as Thailand’s economy grows.
The multiplicity of criteria and incentives set by Thailand’s Board of Investment lies at the heart of this potentially perplexing scenario. Because of the significant benefits, BOI registration of foreign companies becomes a topic of discussion. Thailand gives tax concessions on corporate revenue, import taxes on machinery and materials. BOI also facilitates deductions for transportation, utilities, and building expenditures in order to attract international investment. Many other non-tax benefits are available to certain types of BOI businesses, such as the right to hire foreign personnel, own land, and transfer foreign cash.
What to Know Before BOI Registration?
The exemptions and perks after the BOI registration of a company can last for years. But this length of time varies depending on the type of business you run. Additionally, it is this variation that accounts for most of the complexity for Thailand BOI registration. Because not everyone who submits a BOI application is accepted. Rather, many are placed in unexpected categories. This makes the BOI’s regulations and processes well worth learning.
There are numerous advantages that a BOI registration can provide. But, knowing the requirements is crucial before embarking on any company strategy. Agriculture, mining, light industry, and metal products are BOI eligible activities. The same applies to electronics, chemicals, paper and plastics, and utilities / public services. These categories have further subdivisions, and a more detailed description can be found here.
Some categories receive longer-term benefits than others. These benefits are extendable if the company passes the Thailand Board of Investment’s “competitiveness enhancement” requirements. Research and development, product and packaging design, and IP purchase / licencing have the privilege of creating technology in Thailand. Sales purposes are just a few of the activities to yield a foreign company extended benefits of the BOI.
Apart from the type of business you run, the location of your firm might have an impact on the number of perks from the BOI. Twenty Thai provinces encourage investment by providing additional privileges to foreign-owned enterprises that operate there. Furthermore, businesses operating out of industrial estates or industrial zones may be eligible for longer-term benefits.
Your Take!
Foreign business owners can put themselves in the best possible position. They have to do so to run a successful firm by understanding the types of variables at play. Thailand’s Board of Investment has a long history of assisting numerous successful foreign enterprises. It also has records of positive outcomes for both the enterprises and the Thai economy as a whole.
As you can see that proper knowledge and information on BOI Registration is the prerequisite of its application. For this reason, you must have proper Thai legal counsel in your contact list. Shoot us a mail at [email protected] for a free consultation and get all your queries solved.
