BOI Thailand Benefits
To be eligible to receive BOI Thailand benefits, a business must invest a certain amount of money in the economy of Thailand. The capital investment can be in the form of cash or physical assets. The amount of capital that is invested cannot include land values or payroll budgets. The company must invest a minimum of 1 million baht to be eligible for the promotion program.
Encourage activities that are eco sustainable, conserve energy, or use alternative energy sources
Incentive programs for companies that take a sustainable or green approach to business are one of the best ways to attract foreign investment to Thailand. Thailand offers incentives for both local and international businesses in a variety, including automotive and smart electronics, advanced agriculture and biotechnology as well as tourism and food processing. There are programs available to aid local businesses in connecting with suppliers and customers and gain access to international talent.
Another way to encourage businesses is to create an economy-support program for the grassroots. It assists local organizations involved in activities like low-methane rice farming. This program is part of a larger effort by the BOI in the reduction of greenhouse gas emissions. The deadline for applications was extended to the end of 2022. BOI Thailand is committed to ensuring that businesses in Thailand are committed to using environmentally friendly methods and are able to save energy.
Other benefits of BOI Thailand include tax breaks and tax exemptions for corporations. The most well-known incentives are the import of raw materials for free lower tariffs on machines employed in production, and permission to own land. Other benefits include facilitation of visas and work permits.
Encourage clusters to stimulate the concentration of investment in line with the regional potential
The promotion of clusters through the BOI is a crucial element of the country’s economic development plan. The scheme offers a range of incentives to companies that are incorporated in clusters. The incentives offered vary based on the type of business and the location of the business. These incentives can include tax holidays, preferential treatment of foreign owners, and easier work permits. Additionally, certain requirements may apply for a business to be eligible for promotion.
BOI Thailand’s incentives are dependent on the type of work the company plans to undertake. The benefits are higher for those investments that meet the requirements of priority. Certain types of activities are suitable for promotion, such as mining, agriculture, ceramics, basic metals, light industry and metal products. The new policy also offers merit-based incentives for certain important industries.
Promote projects by allowing 25% deduction from net profits construction or infrastructure costs
Businesses can deduct 25 percent of their net profits for infrastructure expenses as long as the project is located in Zone 2 or Zone 3. New promotion guidelines will help increase production efficiency and offer 25% deduction from the net profit from infrastructure costs. BOI promotion certification is able to be requested by businesses that meet certain criteria.
BOI Thailand offers many other incentives, in addition to tax benefits. Thai BOI company include a deduction of 25% of the project’s net profits and exemptions from import duties, and an allowance of up to 50% of project’s construction costs or infrastructure costs. However, investments worth more than 200 million Thai Baht must be approved by an BOI subcommittee within 60 days, and approved by the BOI board within 90 days.
An additional corporate income tax exemption of up to 3 years is another benefit. They could also be eligible for an maximum 300% increase in the corporate income tax exemption cap.