New BOI Policy for Investment 2015

A presentation on the BOI criteria for the next 8 years was recently released on their website.

Here is a quick summary of changes/details:

• The big winner is “knowledge based activities, with a focus on R&D and Design” – I suspect we shall see many applicants in this category
• Zones have been done away with – but there are now SEZ – special economic zones, notably in the south.
• Corporate income tax incentives are available for many different types of industries. The standard length is 8 years with other options to extend.
• Import duties can be eliminated or alleviated if your project meets certain criteria.
• The projects will only need a minimum of 1M Baht investment, which is a great sign and clears up misunderstanding where some people misunderstood guidelines.
• There is an additional clause about hiring foreign workers, if done for a knowledge intensive position that has A1 incentives, minimum spending must be 1.5M per year on salaries.

Other Things of Note: {updated after BOI meeting}

• agriculture and digital sector and crossovers between the two are highly attractive projects
• the government is aiming to create a situation where innovation can also be used domestically, as a benefit to Thailand
• Headquarters is still an attractive remedy for tax and work permit
• the government is looking to have electronic 90 day checkins
• The Bank of Thailand may be helping with Foreign exchange (FOREX).
• ministry of comerce has promised to reduce time needed for liscense for BOI companies
• Almost any country can claim a HQ if the HQ owns at least 25% of that subsidiary
• The emphasis is now placed on type of location more than region – as regions are abolished
• There are now incentives for “clusters” in the poorest 20 provinces in GDP per captia, the min. investment threshold for businesses in these areas is 500k baht and other additional incentives are provided
• Software companies get 5 year tax exemption + an additional 3 years are possible
• There was constant talk of cleaning up all corruption, and aims to be globally competitive

There is still a rather intensive process to obtaining a BOI license in Thailand. We are experts at obtaining that license and helping you create the business plan and get it into the right hands at the board of investment.

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