To be eligible to receive BOI Thailand benefits businesses must invest a certain amount of money in the economy of Thailand. The capital invested can be in the form of cash or physical assets. The amount invested cannot include land values, production budgets, or payroll costs. BOIcompany registration in Thailand must invest at least 1 million baht to be eligible for the promotion program.
Promoting activities that are eco-friendly to conserve energy, reduce energy consumption, or make use of other energy sources is a good idea.
One of the best ways to draw investment from abroad to Thailand is to provide incentives to companies with a green or sustainable approach. Thailand offers incentives to international and local businesses in a variety of sectors, including automotive and smart electronics, advanced agriculture, biotechnology, food processing and tourism. Programs are available to enable local businesses to connect with suppliers and customers and gain access to international talent.
A grassroots economy support scheme is another way to encourage businesses to adopt sustainable practices. It supports local organizations involved in low-methane farming. This program is part of a larger effort by the BOI in decreasing greenhouse gas emissions. The deadline for applications has been extended until the end of 2022. BOI Thailand is committed to ensuring that companies in Thailand are committed to using environmentally friendly practices and to reducing their energy usage.
BOI Thailand also provides tax breaks and tax exemptions to businesses. The most commonly used incentives include the free import of raw materials, reduced tariffs for machinery used in production, and permission to own land. Other benefits include the ease of work permits and visas.
Create clusters to encourage investment concentration in accordance with the regional potential
The BOI promotes clusters as an essential element of the country’s economic growth plan. Businesses that are integrated into clusters receive various incentives. The incentives offered vary based on the type of enterprise and the location of the business. They may also include tax holidays, preferential treatment for foreign owners and a streamlined process for obtaining working permits. Additionally there are certain requirements that must be met for a business to be considered for promotion.
BOI Thailand’s incentives are contingent on the type and amount of activities the company plans to undertake. The benefits are higher when investments meet the requirements of priority. Certain activities are eligible for promotion, such as mining, agriculture, ceramics, basic metals light industry and metal products. The new policy also offers merit-based incentives for a few key industries.
Promote projects with a deduction from their net profit of 25 percent of the project’s infrastructure installation or construction costs
Businesses can deduct 25% from their net profits for infrastructure costs if their project is located in Zone 2 or 3. A new promotion policy is expected to provide incentives to boost production efficiency which includes a 25% deduction from net profits for construction and infrastructure costs. BOI promotion certification can be sought by businesses who meet certain requirements.
BOI Thailand offers many other incentives in addition to tax benefits. These include the deduction of 25% from the project’s net profits and exemptions from import taxes, and a reimbursement of up to 50% of the project’s construction or infrastructure costs. However, investment projects with a value of more than 200 million Thai Baht must be approved by the BOI subcommittee within 60 days and by the BOI board within 90 days.
Another benefit is an extra corporate income tax exemption that lasts up to three years. Additionally, they may also be eligible to receive an increase in the cap on the exemption of corporate income tax by up to 300%.