Thailand BOI Give Tax Incentives for Promoted Company
Here is the summary of the recent tax incentives offered by Thailand Board of Investment for directly flood-affected companies.
I. Tax incentives for directly flood-affected companies
Conditions:
- Existing BOI-promoted projects directly affected by flood
- Still have remaining unused corporate tax exemption period
REMARK: An official announcement is to be issued soon.
Tax Incentives:
1. Projects subject to a corporate income tax exemption cap
Remaining at original province
-8 year corporate income tax exemption (subject to 150% cap on new investment * + remaining unused cap)
Relocation to another province
-8 year corporate income tax exemption (subject to 100% cap on new investment * + remaining unused cap)
* All fixed assets (except land) including repairs of existing machinery and replacement machinery previously imported under the BOI scheme
2. Projects not subject to a corporate income tax exemption cap
Companies can use option 1 above or the following scheme.
| Remaining Corporate Income Tax Exemption Period |
Additional Years of Corporate Income Tax Exemption to be Granted |
| ≤ 5 years |
+3 more years |
| > 5-6 years |
+2 more years & 2-year 50% tax reduction |
| > 6-7 years |
+1 more year & 4-year 50% reduction |
| > 7-8 years |
+5-year 50% tax reduction |
II. Tax incentives for flood-affected industrial estates
Conditions:
- All industrial estates/zones
- Invest in flood-prevention infrastructure and system
Incentives:
- 8-year corporate income tax exemption with cap of 200% of investment excluding costs of land and working capital.
Contact MSNA for Thailand BOI questions and information.
Thailand BOI Incentives
The Board of Investment of Thailand offers a wide range of incentives and services to foreign investors that can help them to make their investments more profitable.
Thailand BOI Promotion provides privileges to attract more and more
investors to set up their operations here in Thailand. The privileges are
summarized as follows:
Tax incentives
- Exemption/reduction of import duties on machinery.(section 28/29)
- Reduction of import duties for raw or essential materials.(section 30)
- Exemption of juristic person’s income tax and dividends.(section 31 and 34)
- A 50 percent reduction of the juristic person’s income tax.(section 35(1))
- Double deductions from the costs of transportation, electricity and water supply.(section 35(2))
- Additional 25 percent deduction of the cost of installation or construction of facilities.(section 35(3))
- Exemption of import duty on raw or essential materials for use in production for export.(section 36)
Non-Tax incentives
- Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities.(section 24)
- Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.(section 25 and 26)
- Permit to own land.(section 27)
- Permit to take out or remit money abroad in foreign currency.(section 37)
Guarantees
- The State will not nationalize the activity of the promoted person. (section 43)
- The State will not undertake a new activity in competition with the promoted person’s. (section 44)
- The State will not monopolize the sale of products similar to the promoted person’s.(section 45)
- The State will not impose price controls on the products of the promoted person’s.(section 46)
- The State will grant permission to export at all times.(section 47)
- The State will not allow any government agency, government organization or state enterprise to import any kind of the product being produced by the promoted person into the Kingdom by granting import duty exemption.(section 48)
Protection
- To charge extra import fees into the Kingdom on products similar to those produced by the promoted person at a rate not exceeding 50 percent of the price of overseas insurance and freight charges, effective for a period of not more than one year. (section 49)
- In the case of where the Board is of the opinion that Section 49 is inadequate for protecting the activity of the promoted person. it will increase the measure by banning the import of products similar to the local productions. (section 50)
- In the case where the promoted person encounters any problem or obstacles in the course of carrying out the promoted activity, the Chairman will have the power to render any appropriate assistance.(section 51)
We at MSNA together with our team of BOI experts and auditors can guide you to fully understand how to take full advantage of the BOI incentives, guarantees, protection and privileges. Moreover, we can also help you in complying with the BOI standards particularly in terms of reporting requirements.
Contact MSNA for an expert advice regarding Thailand BOI Promotion.
