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Source: Thailand Board of Investment's Investment Review Publication The BOI Investment Review is a monthly publication of the Thailand Board of Investment. www.business-in-asia.com and Runckel & Associates believe that much of this information needs wider dissemination. We are therefore working with the BOI to help promote these useful articles and index them into categories that are easy to find. |
What happens after an application is submitted to the Board of Investment (BOI) for investment privileges?
Within 15 working days after receiving an investment application, the Office of the Board of Investment will contact the applicant for an interview to discuss the application. BOI officers will then review the application and interview notes. The BOI will make a decision about whether to approve the project within either 60 or 90 days after receipt of the application, depending upon the investment size. Applicants with investments of between 1 million to 750 million baht (US$ 25,000 to US$ 18.75 million) will be notified of the BOI’s decision within 60 days. Applicants with investment projects greater than 750 million baht (US$ 18.75 million) will be notified within 90 days.
What criteria are used to evaluate projects for BOI investment privileges?
Investment projects fall into various categories which each have specific approval criteria. For projects with investment capital not exceeding 500 million baht (US$ 12.5 million), the BOI applies the following criteria in determining whether to rant investment privileges:
• The value added is not less than 20% of sales revenue, except for electronics and electronic parts manufacturing projects, processed agricultural projects and projects granted special approval by the Board.• A newly established project should not exceed a 3:1 ratio of liabilities to registered capital. Expansion projects will be considered on a case-by-case basis.
• Projects should use modern production processes and new machinery. In cases where old machinery will be used, its efficiency must be certified by reliable institutions and the Board’s approval must be obtained.
• Adequate environmental protection systems must be installed. For projects that pose a potential environmental threat, the Board will prescribe special conditions on both the project’s location and pollution treatment system.
Can a regional office qualify for investment privileges?
Regional operating headquarters (ROH) are eligible for non-tax privileges (see next question). To qualify, the ROH must provide services to associated enterprises in foreign countries or its foreign branches in at least three countries. It must have registered capital of at least 10 million baht (US$ 250,000) and it may be 100% foreign-owned. Appropriate operating licenses must be obtained.
The ROH’s business plan and operational scope are subject to BOI approval. The scope of work must cover the provision of services and administration or technical assistance, or the provision of the following services, to its local or international branches or affiliates:
General administration and business planning and coordination
Sourcing of raw materials and parts
Product research and development
Technical support
Marketing and sales promotion
Human resource management
What types of non-tax investment privileges does the BOI grant?
In addition to tax incentives, including eight year income tax exemptions, the BOI offers the following non-tax privileges
- 100% land ownership rights for foreign investors
- Permission to bring in foreign nationals to conduct investment feasibility studies
- Ability to bring in foreign technicians and experts to work on promoted projects
- Work permit and visa facilitation
- Ability to remit foreign currency abroad
What types of projects are granted priority investment status?
The BOI places priority on promoting projects related to the following:
- Agriculture and agricultural products
- Direct involvement in technological and human resource development
- Public utilities and infrastructure
- Environmental protection and conservation
- Targeted industries including agriculture/food processing, automotives, fashion, ICT/electronics, alternative energy and high value services
For more information, please visit www.boi.go.th
Other Useful Information on our site:
How to get a Work Permit: Living and Working in Thailand on a Long Term Basis
www.Business-in-Asia.com