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Archives for Thailand BOI

Thailand BOI for Service Business

Getting Thailand BOI for service business is possible, especially if you want to operate a Trade and Investment Support Office (TISO). Your business activities must be one of the following:

2.1  Monitoring and/or servicing associated enterprises including providing or letting office or factory building to company’s associated enterprises
2.2  Advisory services on business operations, except those engaged in buying and selling securities and foreign currency exchange. As for accounting, legal, advertising, architectural and civil engineering businesses, business licenses must be obtained from the Department of Business Development or related government agencies prior to submitting the investment promotion application
2.3  Information services on goods sourcing
2.4  Engineering and technical services, except those related to architecture and civil engineering services
2.5  Business activities related to machinery, engines, tools and equipment, such as:
(1)  Importing for wholesaling
(2)  Training services
(3)  Installation, maintenance and repair
(4)  Calibration
2.6  Wholesaling products manufactured in Thailand
2.7  International business process outsourcing whose services are provided through telecommunication networks, such as administrative services, finance & accounting services, human resource services, sales and marketing services, customer services, data processing, etc.

Because TISO is such a multipurpose category, businesses in a wide variety of fields may qualify for BOI promotion. Although the BOI does not provide any taxation benefits for TISO, the right to own 100% of a TISO company makes it very attractive to foreign service providers and traders who may not be eligible for other investment promotion. Because the requirements are wide-ranging, the BOI has set 10 million baht in annual selling and administrative expenditures as the minimum qualification. This ensures that only companies that will have the greatest impact on Thailand trade and investment qualify.

General Conditions

  1. Annual selling and administrative expenses must be at least 10 million baht
  2. Must have a business plan and scope of business as approved by the Board

Benefit Incentives:

  • No import duty on raw or essential materials used in manufacturing export products for 1 year or more as deemed appropriate by the BOI
  • Other non-tax incentives, including getting many work permits for your expat employees

MSNA is available to assist you in numerous ways, including offering consultations and resources.

For complete information, read Thailand BOI information and contact MSNA for consultation on getting Thailand BOI for service business.

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BOI for Grading, Packaging and Storage of Plants

Foreigners can own the business 100% if their business is eligible for Thailand BOI. For grading, packaging and storage of plants, vegetables, fruits or flowers, it is possible if your business have one of the following features:

  1. If your project uses advanced technology (e.g. fruit ripeness sensor, radio frequency pest control, nuclear magnetic resonance) then for this business activity, the BOI benefits that you will get are:
  • 8 year corporate income tax exemption, not more than 100% of investment (excluding cost of land and working capital);
  • Exemption of import duty on machinery;
  • Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year, which can be extended as deemed appropriate by the Board of Investment;
  • Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities;
  • Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities (meaning many work permits without the ratio of 4 Thais per expat);
  • Permit to own land; and
  • Permit to take out or remit money abroad in foreign currency.
  1. Projects that use modern technology (e.g. color sorter, vapor heat treatment to kill fruit fly eggs, seed coating); or
  2. Project of rice grading (with advanced technology only)

For the business activities in 2 and 3, the BOI benefits that you will get are the same as in 1 above, but the corporate tax exemption is only 5 years and capped at100% of the investment (excluding cost of land and working capital).

Consult with MSNA Group for setting up your BOI promoted business in Thailand.

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Thailand BOI for Manufacture of Multi-Purpose Engines and Equipment

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If your business receives an investment promotion from Thailand BOI for Manufacture of multi-purpose engines and equipment, you will get the following benefits only if your project has forming process of main engine parts, e.g. cylinder head, crank case, crankshaft, camshaft, connecting rod, piston and flywheel:

  • 3 year corporate income tax exemption, capped at 100% of your investment in the project (excluding cost of land and working capital)
  • Exemption of import duty on machinery
  • Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year, which can be extended as deemed appropriate by the Board of Investment
  • Other non-tax incentives, which are many work permits for your foreign skilled workers and experts (without the ratio of 4 Thais per expat), permit to own land; and ability to take out money abroad in foreign currency.

However, if you project is just assembling of multipurpose engine or equipment, you will get the same benefits as mentioned above, except the corporate tax exemption.

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Thailand BOI for tourism related businesses

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If you are interested in getting Thailand BOI promotion for Amusement Parks, Open Zoos, Hotels, Hostels, Race Tracks, Convention Halls, Exhibition Centers, now is the time. As we all know, Thailand is one of the most visited countries in South East Asia. It only makes sense that many foreign investors think about having a business out of tourism in Thailand.

 

The government makes a lot of effort in bringing and attracting more tourists all over the world. This opens a lot of opportunities and growth in the tourism related businesses. Thailand Board of Investment is offering both tax and non-tax incentives to foreigners who want to invest in Amusement Parks, Open Zoos, Hotels, Hostels, Race Tracks, Convention Halls and Exhibition Centers in the country. The benefits includes owning land for your business, import duty exemption for machineries, corporate tax exemption, dividend tax exemption, big number of work permits for foreign employees, etc.

 

Take a look at Thailand BOI promotion for more information and contact Thai lawyers at MSNA Group who are BOI experts and knowledgeable in assisting foreigners to set up their business. Contact us and  explore the possibilities of owning your tourism related business 100% without a Thai partner.

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Cloud Service Business in Thailand

In a more and more digitalized world, the use of cloud services is in great demand as never before. If you find yourself wishing to bring your cloud services business to Thailand and take advantage of the benefits associated with the BOI promotion, we will be more than happy to assist you in Thailand BOI company registration.

To be qualified for Thailand BOI promotion and to receive the numerous benefits in form of incentives, below are the conditions to meet:

  1. Must be located in at least 2 data centers in Thailand that are certified with ISO/IEC 27001 (data center).
  2. Must have connections among all related data centers with speed of at least 10 Gbps for each connection, with backup connections at the same speed.
  3. Must be certified with ISO/IEC 27001 (cloud security) and ISO/IEC 20000-1 (cloud service).

As a company in the cloud services business, the Thai government acknowledges your importance of activities and categorizes the sector of great significance and value. The incentives under Thailand BOI includes the following.

Activity-based Incentives

  • 8-year Corporate Income Tax exemption (without cap) + merit based incentives
  • Exemption of import duties on machinery
  • Exemption of import duties on raw materials for use in production for export
  • Non-tax incentives

With a long and multifarious track record in setting up companies for foreigners and the detailed knowledge about Thailand BOI company registration, we are looking forward to giving you advice and helping you to get your company set up here.

Let us assist you to establish your business in Thailand and contact us here.

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Thailand BOI company registration for Industrial Chemicals

Does the nature of your business involve industrial chemicals? Are you planning to take your operation to Asia or specifically to Thailand? Do you wonder if this is possible? The answer is YES and we can assist you to make it happen. Your industrial chemicals business can benefit from Thailand BOI company registration as long as your products are not paint, cleaning products, automobile lubricants, compound chemical fertilizers, insecticides, herbicides or cement based adhesives.

There are the advantages of enlisting your business under BOI (Board of Investment) in Thailand.

  • Corporate tax amnesty for 3 years
  • No import tax for machinery
  • No import tax for raw materials for one (1) year (can be extended according to BOI rules & eligibility)
  • Other non-tax incentives

Read Thailand BOI benefits here.

Don’t worry even if your industrial chemical products are similar to those mentioned above. You can still operate your factory here without Thailand BOI.

Sounds interesting and beneficial for your industrial chemicals business? Drop us an email info@MSNAgroup.com. Get an advice from the experts in Thailand BOI company registration. MSNA Group of companies are experts in providing consulting to foreigners wishing to set up their business operation is Thailand at very reasonable prices for world class services.

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Software business with super cluster policy from Thailand BOI

Thailand Board of Investment launched the Cluster-based Special Economics Development Zone Policy to enhance investment potentials and competitiveness. There are Super Cluster and other targeted clusters. Software is one of the activities granted highest incentives under Super Cluster policy.

Without the cluster policy, embedded software development business normally can get 8 years of corporate income tax exemption while enterprise software and digital content can get 5 year income tax exemption.

Under Super Cluster policy, all types of software development are granted 8 years corporate income tax exemption without cap plus 5 years 50% income tax reduction and import duty exemption on machinery if operating in either Chiangmai or Phuket.

Additionally, the international specialist may enjoy the personal income tax exemption, details of which will be announced soon by the Ministry of Finance.

Apart from the above tax related benefits, other incentives include consideration of granting Permanent Residence to the leading specialist and permission for foreigners to own land to implement the activities that receive Thailand BOI promotion. – However, we checked with the Immigration Office and they do not really have any special treatment regarding permanent residence yet.

General Conditions for BOI incentives

  • The business have to spend THB 1.5 M in IT employees’ salaries per year.
  • Projects must include software development process specified by the Software Industry Promotion Agency (SIPA).
  • Projects with an investment of 10 million baht or more (excluding cost of land and working capital) must obtain a quality standard certificate from SIPA or receive a Capability Maturity Model Integration (CMMI) quality standard certificate or any equivalent standard within two years from the full operation start-up date. If the project fails to meet such conditions, one-year corporate income tax exemption shall be withdrawn.
  • Revenue derived from sales or the provision of services that are directly related to a promoted software business shall be regarded as revenue of such promoted businesses.

Additional condition for special incentive under Super Cluster

  • The business must have a cooperation with academic institutions / research institutions / centers of excellence in the designated areas e.g. Talent Mobility / Work-integrated Learning / Co-operative Education / Dual systems or Cooperation in development of human resource or technology as approved by Thailand Board of Investment
  • The BOI applications must be submitted by the end of 2016.
  • The production or operation must start by the end of 2017. (Extension is possible if deemed appropriate.)

Read Thailand BOI promotion process for more information.

Contact us today for your BOI needs.

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BOI Measures to Promote Improvement of Production Efficiency

With regard to the recently issued Announcement of the Board of Investment No. 1/2557, the Thailand BOI is encouraging both BOI-promoted and non-BOI promoted manufacturers to invest additionally for the improvement of production efficiency. This improvement is to be achieved through 3 measures as follows:-

The announcement includes 3 measures as follows:

  1. A measure to promote energy conservation, alternative energy utilization, or reduction of negative environmental impact. The investor must submit an investment plan detailing proposed upgrading of machinery to save energy, a plan to introduce alternative energy into the project or a plan to reduce damaging environmental impact according to the stipulated criteria.
  2. A measure to promote investment to upgrade manufacturing technology and machinery to increase production efficiency. Investors must submit an investment plan detailing replacement or modification of machinery used in automated production lines.
  3. A measure to promote investment in research and development to upgrade manufacturing technology and advanced engineering designs for improving efficiency. Investors must submit an investment plan for research and development or implementation of advanced engineer designs that conform to the stipulated criteria. Investors with large projects must invest no less than 1% of their total revenue for the first three years from the date of application submission in research and development or advanced engineering designs. For SMEs, projects must invest no less than 0.5% of their total revenue for the first three years from the date the application is submitted in research and development or advanced engineering designs.

Interested investors for incentives under these measures must operate businesses of a type that is specified on the BOI list of businesses that are eligible for promotion. The minimum capital investment requirement for each project must not be less than 1 million Baht, excluding land cost and working capital. For Small and Medium Enterprise (SME) projects, the BOI requires an investment value of Baht 500,000, excluding the cost of land and working capital.

The incentives given to approved projects in all zones include exemption from import duty on machinery and a three-year corporate income tax exemption based on the revenue of an existing project, and will not exceed 50% of the total investment value under this measure, excluding land cost and working capital. Project applications must be submitted by December 31, 2017 and the projects must be completed within three years from the date the promotion certificate is issued.

The investment promotion measures to improve production efficiency are in accordance with the National Economic and Social Development Plan No. 11 which outlines a strategy for restructuring the economy to ensure quality and sustainable growth, with the focus on improving manufacturing production efficiency and promoting the use of advanced science, technology and innovation while also furthering the use of clean energy and alternative energy.

Know more about Thailand BOI promotion and its benefits for your business. Consult with ThaiLawyers for getting BOI certificate, Thai company registration, visa and work permit application.

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Thailand BOI: New Investment Strategy

Thailand BOI has recently approved the seven-year draft investment promotion strategy which will commence from 2015 to 2021. The new investment strategy will shift from broad-based to focused and prioritized investment promotion that will lead to the restructuring of the Thai economy. It will also move the country forward to become a higher-income economy with sustainable growth in the long run.

The new strategy will still offer promotional privileges to seven groups of industries: agro-industry and agricultural products; mining, ceramics and basic metals; light industry, metal products, machinery and transport equipment, electronics industry and electrical appliances; chemicals, paper and plastic; and services and public utilities although greater emphasis will be placed on high technology, high added value, research and development or design and environmentally friendly activities.

There are two types of incentives to be offered: (1) activity-based incentives and; (2) merit-based incentives. For instance, basic incentives will be offered in accordance with the types of activities. Additional incentives will also be provided for projects that will benefit the country, such as research and development, high-skill development, and the distribution of wealth to regional areas.

Meanwhile, the previous zoning policy, whereby Thailand was divided into three zones for investment purposes, will be revoked. It will be replaced by the promotion of new regional clusters in order to create new investment concentration in each region and stronger value chains.

Moreover, the new strategy will attach importance to both inbound and outbound investment promotion. This will help ease constraints in terms of domestic resources. It will also enable the country to seek new business opportunities for the Thai private sector, especially when the ASEAN Economic Community (AEC) goes into full effect and Thailand plays a greater role in the international arena.

In this regard, the first target countries include Indonesia, Myanmar, Vietnam, Cambodia and Laos. The second ones are China, India and other ASEAN nations, while the third group includes Central Asia, South Asia and Africa.

Contact MSNA for company setup, BOI promotion, Foreign Business License, factory license, visa and work permit application in Thailand.

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Thailand BOI – Application for Bringing in Foreign Experts and Technicians

Today, we talk about the application for bringing in foreign experts and technicians to work for promoted business under the Investment Promotion Act B.E. 2520.

The Foreign Expert Services Division, Investment Services Center, Office of the Board of Investment, offers services at the One-Stop Service Center for Visas and Work Permits to facilitate the bringing in foreign technicians or experts, as well as their families, into the Kingdom to work for businesses promoted under the Investment Promotion Act B.E. 2520

The procedure has two steps:

STEP 1: The company submits an application at the Foreign Expert Services Division requesting approval of the positions of the foreigners.

This step involves submission of a document describing the company’s objectives and the necessity to bring in foreigners to work in specified positions, the personnel plan of the company showing the number of positions of foreign experts or technicians required and the periods during which foreign technicians or experts are required to work for the company.

Required documents:

  1. Form for Requesting Permission to Bring in Technicians (F FR NI 01)
  2. The company’s organization chart

The chart must show the organization’s lines of responsibility, specifying the positions for which approval is requested. The positions which have been approved must also be shown on the chart.

  1. Form F FR NI 02 (Kor Kor Tor 41)

The following details are required:

– Position titles in English

– Job descriptions, covering all actual jobs required

– Job requirements

– Duration (The periods during which the foreigners are required)

  1. A copy of Investment Promotion Certificate

A copy of the main Investment Promotion Certificate is required. In case of multiple certificates, only the ones relevant to the request should be attached.

  1. A copy of the License to Commence Operations

In the event the company is not in a position to furnish the License to Commence Operations, a written explanation, stating the reason (s) and the current stage of the company’s business plan shall be required.

  1. A copy of the Company Registration Certificate

The document must not be older than six months, as of the submission date.

  1. A copy of a list of shareholders

An up-to-date list of shareholders and their shareholdings is required. For public companies, the document provided must contain pages showing the major shareholders and the ratio of Thai to foreign shareholders.

  1. A copy of Balance Sheet and Profit & Loss Statement
  2. All documents (except the ones issued by the Office of the BOI) must be signed by the authorized directors as specified in the Company Registration Certificate with the company seal affixed, or by a person duly authorized by the directors (with a Power of Attorney clearly specifying the authorized powers and duties and a thirty-baht duty stamped affixed).

Once approved, the company will receive a Letter of Approval for use as a reference in Step 2.

In case it was not approved, a written notification is issued to the company.

STEP 2: The company files an application at the Foreign Expert Services Division requesting approval to bring in foreigner to work. (Filing the approved positions)

The foreigners in question will need a non-immigrant category “B” visa to enter the Kingdom. They need to obtain the visa at a Thai embassy or consulate in a foreign country and to declare the objective of entering the country to work. Upon arrival into Thailand, their non-immigrant category “B” visa will be stamped by immigration. After that, they are required to request an extension of their stay in order to work.

Documents required in Step 2:

  1. A company letter containing details and reasons

The letter shall mention the company’s intention to fill the specified positions with details of the individuals (names specified and justifications provided as to why such persons are suitable for the jobs) being proposed to fill the positions.

  1. A Bio-data form

Once approved, a written notification is issued to the company, the Immigration Bureau and the Department of Employment

However, in the event that it is not approved, a written notification will be issued to the company.

Interested in obtaining BOI promotion in Thailand, contact ThaiLawyers for BOI application, Thai company registration, visa and work permit application for bringing in foreign experts and technicians to work for your company.

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