Market Entry in Thailand Making the Most of Growth Sectors - Board of Investment Incentives
Atlas Commercial Consulting is a Business and Commercial Development consultancy with a specific focus on the Thai market.
Our team can help support your Business and strategy providing a rich portfolio operational management and planning services tailor made for the client – We aim to deliver a 360° solution to international companies or investors wishing to enter the Thai and SEA markets.
Thailand is a growing economy with efficient infrastructure, a highly skilled labor pool and very attractive foreign investment incentives for target industry sectors. In 2016 GDP WAS $404.8 Billion USD.
BOARD OF INVESTMENT INCENTIVES FAQ
Q: What is the Thai Board of Investment?
A: The Thailand Board of Investment or BOI is an agency of the Government of Thailand, specifically the Ministry of Finance. Its mission is to promote foreign investment in Thailand by providing information, services, and incentives to interested foreign investors. One of it's primary objectives is the promotion of the Foreign Investment Act
Q: What is the Foreign Investment Act?
A: Originally, the Investment Promotion Act B.E. 2520 (A.D. 1977) (“the Investment Promotion Act”) was enacted because the economic situation in Thailand was affected by a world economic crisis. Under the Investment Promotion Act, a board of investment (the “BOI”) was established to promote both foreign and Thai investment by providing tax and non-tax incentives. The Investment Promotion Act has been amended from time to time since its enactment to make it appropriate to changing global and domestic economic situations. The last amendment of this act was published by Royal Gazette as of this year.
Q: What benefits & incentives can a investing foreign Business acquire?
A: Firstly, all incentives are provided on a merit based system for qualification. For example if you are operating in a targeted industry, investing a certain amount, or fulfill special criteria. Listed below are some examples;
- Corporate Income Tax exemption - From 3 - 15 years
- Exemption/reduction of import duties on machinery
- Reduction of import duties for raw or essential materials
- Exemption of corporate income tax on the net profit and dividends derived from the promoted activity
- A 50 percent reduction of the corporate income tax
- Double deduction from the costs of transportation, electricity and water supply Additional 25 percent deduction of the cost of installation or construction of facilities
- Exemption of import duty on raw or essential materials imported for use in production for export
- Land ownership
- Relaxation of immigration restrictions for workers
Q: What are the target Industries & minimum investment amounts?
A: The whole purpose of the act is to stimulate economic growth, build up core industries and increase Thailand's global and regional economic capability. Minimum amounts are assessed as per industry sector, with those being;
- Automotive
- Agro-processing Products
- Electrical Appliances
- Textiles & Garments
- Eco-friendly petrochemical & chemical products
- Digital-based (Tech)
- Tourism
- Aerospace
- Robotics & automation
- Medical Hub
Q: How do I find out more about investing in Thailand?
A: This post would be very, very long to explain everything but please see the link below for a BOI overview;
How Atlas Commercial Consulting Can Help your Business
Market entry is our primary focus and when it comes to BOI incentives and major investment we would first want to find out more about your intentions. Then get you in touch with a qualified legal team that handles all BOI applications to explain the process, after which our team can develop a market entry strategy the includes;
- Company set up & administration
- Legal sourcing (Corporate, Tax Planning, Investors agreements & IP)
- Logistical support - Finding operational locations
- Business Matching & Strategic Partnering
- Sales & Marketing Outreach/Management
- Promotion
Even if you do not plan a full scale relocation that does not qualify for BOI status our team can still provide a soft market entry option and find trade or investment opportunities in-bound or out-bound.
To find out more contact:
We look forward to find a solution for you.
Thank you from the Atlas Team.
