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Board of Investment (BOI) – Promotion types

BOI Promotion types

Under the Investment Promotion Act, the Board of Investment (BOI) is authorized to grant incentives, guarantees and investor protections. Whereas most investors are keeping BOI promotions in mind mainly for corporate income tax holidays, non-tax incentives can be at least as important to a local or foreign investor. Each promotion type shall be explained in detail:

Tax incentives

The Board of Investment (BOI) Thailand may grant tax incentives in the following three areas:

– Reduction/exemption on corporate income tax (up to 8 years)

– Reduction/exemption on import duties on machinery and raw materials

– Double tax deductions from costs of transportation, utilities supply, cost of installation of machinery, cost of construction of facilities

Non-tax incentives

The Board of Investment (BOI) Thailand may grant non-tax incentives in the following areas:

– Permit to bring skilled workers and experts to Thailand

– Permit to own land

– Permit for foreign nationals to study investment opportunities in Thailand

– Permit to take out or remit money abroad in foreign currency

Guarantees

In addition, a promotion by the Board of Investment (BOI) is followed by the following guarantees from the Kingdom of Thailand:

– The state will not nationalize the activity of the promoted person

– The state will not udertake a new activity in competition with the promoted persons

– The state will not monopolize the sale of products similar to the promoted persons

– The state will not impose price controls on the products of the promoted persons

– The state will grant permission to export at all times

– The state will not allow any government agency, government organization or state entreprise to import any kind of the product being produced by the promoted person into the Kingdom by granting import duty exemption.

Protections:

Finally, the Kingdom of Thailand also guarantees protections:

– 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

– 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.

– 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.

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