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Thailand BOI extends measures to support production capacity

In addition to the recent implemented measures by the BOI of Thailand, it has been approved that incentives for machinery and technology improvement for increased production capacity will also be extended until the end of this year, 31 December 2012.

This is a part of the government’s efforts to help manufacturers affected by the massive flood last year. Since it will promote machinery and technology improvement to boost production capacity, this policy is viewed as a significant step in enhancing the country’s competitiveness and investment.

With the aim of encouraging entrepreneurs to invest in new machinery for production improvement – automated production systems, for example – the government offers import duty exemption for machinery imported for this purpose. Additionally, participating investors will be entitled to three-year corporate income tax exemption, which is subject to a 70% cap on total investment (not including land and working capital). The tax exemption is based on existing business revenue and it will be effective until 31 December 2012.

Contact MSNA for your Thailand BOI and its flood relief measures questions.

 

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Thailand BOI Flood Relief Measures

Thailand BOI Flood Relief Measures

Updated as of January 2012

Here is the summary of the updated flood relief measures implemented by the Board of Investment of Thailand.

Measures to Minimize Business Interruption

  1. Factories can be allowed to temporarily relocate elsewhere to continue their production for the period of 6 months from the application submission date. This temporary relocation period can be extended if necessary.
  2. Manufacturing process can be allowed to be outsourced partially or wholly on a temporary basis.
  3. The BOI, the Ministry of Labor and the Immigration Bureau help facilitate companies to bring in foreign experts and technicians to rehabilitate the factories.

Measures to Reduce Tax Burdens

  1. The importation of machinery for replacement is entitled to duty-free. (submission deadline is by the end of June 2012)
  2. Raw materials imported damaged by the flooding can be counted as part of the waste allowance without any tax burden.
  3. Additional years of corporate income tax exemption are offered to BOI-promoted companies directly affected by the recent flooding that are still during their tax holidays.
  4. Industrial estates that invest in flood prevention systems are also offered 8-year tax holidays with the corporate income tax exemption ceiling of 200% of their investment excluding land cost and working capital.

Contact MSNA for your Thailand BOI, accounting and tax questions.

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Relief Measures for the Flood Affected BOI-Promoted Companies

The Board of Investment (BOI) of Thailand has been actively supportive to all of BOI promoted companies in the country particularly to those affected by the flooding. Here is the summary of the recently approved flood relief measures by the BOI of Thailand.

The Thailand BOI approved the following relief measures for flood affected
BOI-promoted companies:

  1. Raw materials imported for export production that were completely damaged by the floods can be recognized as losses and are not dutiable.
  2. BOI-promoted companies are allowed to subcontract all production by providing imported raw materials for subcontractors to process, on a temporary basis.
  3. The measure exempting import duty on machinery acquired to replace machinery
    damaged by flooding (The Board of Investment Announcement No 4/2554, dated 17 January 2011) will be extended for another six months, and so applications to
    import replacement machinery should be submitted to the BOI by 30 June 2012.

These relief measures are subject to conditions and regulations to be announced by
the BOI.

The above mentioned flood relief measures are in addition to the previously
approved relief measures as listed below:

  1. Machinery or raw materials are allowed to be relocated from factories in emergency cases.
  2. Raw materials imported for export production that were damaged by flooding can be treated as losses, adjusted in the raw materials account and are not dutiable. BOI-promoted companies may use raw materials that are still in good condition in other projects and still be entitled to the import duty exemption.
  3. BOI-promoted companies can outsource certain production processes, on a temporary basis to maintain business continuity.
  4. The BOI has launched a measure to expedite the visa and work permit process for
    experts brought in to restore projects affected by flooding.

Meanwhile, BOI operators are invited to directly contact the Investment Promotion Bureau that looks after their projects for BOI-assistance, at the following telephone
numbers:

– Investment Promotion Bureau 1 (agricultural and light industries)

02 553 8298 (Khun Sithee Tanboonteck)

– Investment Promotion Bureau 2 (metal, machinery and automotive industries)

02 553 8366 (Khun Anin Meksuksai)

– Investment Promotion Bureau 3 (electronics and electrical appliances industries)

02 533 8167 (Khun Tanavadee Khuvasanont)

– Investment Promotion Bureau 4 (chemicals, papers, plastics, and high value added services)

02 553 8294 (Khun Wuttichai Pisatphen)

The BOI’s operations have been temporarily moved to the One-Start One-Stop
Investment Center (OSOS), 18th Floor, Chamachuri Square, from 4 November 2011
until further notice. Tel 02 553 8111, 02 209 1100.

Contact MSNA for any questions regarding BOI Thailand.

 

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BOI Thailand

Board of Investment (BOI) of Thailand is the principal government agency which operates under the Ministry of Industry to encourage investors and facilitate their investments in the country. The BOI is very active in assisting investors in numerous ways such as follows:

1. Enhancing competitiveness and facilitating investment

– Offers an attractive and competitive package of tax incentives.

– Imposes no foreign equity restrictions on manufacturing activities or on some service.

– Provides assistance in the provision of visas and work permits to facilitate entry and subsequent operation for a foreign-owned business.

– Waives restrictions on land ownership by foreign entities.

2. Business support services

– Provides comprehensive information and advice on establishing operations in Thailand.

– Arranges site visits.

– Identifies potential suppliers, subcontractors, joint-venture partners.

– Provides useful contacts with key public and private organizations.

– Coordinates between the foreign business community and other public agencies.

The BOI also acts as Thailand’s marketing arm and actively promotes the country worldwide as one of the best investment locations in Asia. It is tasked
with devising and implementing strategies under which promotional activities
are organized around the globe throughout the year.

The BOI’s seven overseas offices (Tokyo, Osaka, Shanghai, Frankfurt, Paris, Los Angeles and New York) serve as Thailand’s front desks in liaising with potential investors.

Thailand BOI Promotion page gives you information about BOI in Thailand.

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