Understanding the Board of Investment (BOI) in Thailand

What is the Board of Investment (BOI) in Thailand?

The Board of Investment (BOI) is a government agency in Thailand responsible for promoting and facilitating investment in the country. The BOI offers a range of incentives to both local and foreign investors to encourage investment in sectors that align with Thailand’s economic development goals.

Victory InterLaw’s Role: We provide expert guidance on navigating BOI regulations, ensuring your business meets the criteria for approval and maximizes the available incentives.

What are BOI Promoted Activities?

BOI Promoted Activities are specific sectors and industries that the Thai government has identified as crucial for the country’s economic development. Businesses engaged in these activities are eligible for various incentives, including tax holidays, duty exemptions, and operational benefits.

Examples of BOI Promoted Activities:

• Advanced manufacturing and technology.
• Agriculture and agro-industry.
• Digital services and software development.
• Healthcare and biotechnology.
• Tourism and creative industries.

Victory InterLaw’s Role: We help you identify and align your business with BOI Promoted Activities to take full advantage of the incentives offered.

What incentives does the BOI provide?

The BOI offers a comprehensive package of incentives to approved projects, including:

• Tax Incentives: Corporate income tax exemptions or reductions, tax holidays, and exemptions on import duties for machinery and raw materials.
• Non-Tax Incentives: Permission to own land, expedited visa and work permit processes for foreign employees, and protection against nationalization.
• Investment Support: Access to investment facilitation services and assistance with regulatory compliance.

Victory InterLaw’s Role: We assist in the application process to ensure your business qualifies for these incentives and help you manage ongoing compliance to maintain these benefits.

How do I apply for BOI approval?

Applying for BOI approval involves several steps:

1. Pre-Application Planning: Assess your project’s alignment with BOI Promoted Activities and prepare a detailed business plan.
2. Online Application Submission: Submit your application and necessary documents through the BOI’s e-Investment portal.
3. BOI Review and Evaluation: The BOI reviews your application, conducts interviews, and evaluates the potential benefits of your project.
4. Approval and Certification: Upon approval, you receive an Investment Promotion Certificate, which entitles you to the incentives.

Victory InterLaw’s Role: We provide comprehensive support throughout the entire application process, from initial planning to submission and post-approval compliance.

What are the requirements for BOI approval?

To qualify for BOI approval, your business must meet several key criteria:

• Alignment with Promoted Activities: Your project should fall within one of the BOI Promoted Activities.
• Minimum Investment Capital: Typically, there is a minimum investment requirement (excluding cost of land and working capital).
• Thai Shareholding: For certain sectors, there might be requirements related to Thai shareholding or joint ventures.
• Employment and Training: Projects may need to meet specific employment and training targets, particularly for skilled Thai workers.
• Technology and Innovation: Projects that involve advanced technology or significant innovation are often given priority.

Victory InterLaw’s Role: We analyze your business plan and ensure that it meets all the necessary criteria for BOI approval.

Can foreign investors apply for BOI incentives?

Yes, foreign investors can apply for BOI incentives and are often encouraged to do so. The BOI offers favorable terms to foreign businesses, especially those bringing advanced technology, skills, or capital into Thailand.

Victory InterLaw’s Role: We specialize in assisting foreign investors with the BOI application process, helping them understand and navigate the regulatory landscape in Thailand.

How long does it take to get BOI approval?

The duration for BOI approval can vary depending on the complexity of the project and the completeness of the application. Generally, the process can take anywhere from a few weeks to several months.

Victory InterLaw’s Role: We expedite the process by ensuring that your application is thorough and complete, and by efficiently managing any additional requests from the BOI.

What are the post-approval requirements for BOI projects?

After receiving BOI approval, businesses must comply with several ongoing requirements:

• Investment and Operation Milestones: Achieve specified investment levels and operational milestones within designated timeframes.
• Regular Reporting: Submit periodic reports to the BOI detailing progress, financial performance, and compliance with conditions.
• Maintaining Records: Keep detailed records to demonstrate adherence to BOI conditions and to facilitate audits.

Victory InterLaw’s Role: We provide ongoing support to help you meet these requirements and maintain your BOI status, including assistance with reporting, audits, and renewals.

Can I modify my BOI-approved project after approval?

Yes, it’s possible to modify your BOI-approved project, but any significant changes to the project scope, investment levels, or operational plans typically require BOI approval.

Victory InterLaw’s Role: We assist in preparing and submitting applications for modifications or amendments to your BOI approval, ensuring that any changes are compliant and approved by the BOI.

What happens if my BOI application is rejected?

If your BOI application is rejected, you can appeal the decision or reapply after addressing the reasons for rejection. The key is to understand why the application was unsuccessful and make the necessary adjustments.

Victory InterLaw’s Role: We help you analyze the reasons for rejection, improve your business plan, and reapply or appeal effectively.

How does BOI approval benefit my business in the long term?

BOI approval provides a range of long-term benefits, including:

• Enhanced Competitive Edge: Access to financial incentives and operational benefits that reduce costs and improve profitability.
• Market Credibility: BOI approval can enhance your business’s reputation and credibility, attracting further investment and opportunities.
• Strategic Growth: The ability to leverage BOI incentives and support to scale your business and explore new market opportunities in Thailand and beyond.

Victory InterLaw’s Role: We support your business’s long-term success by helping you maximize the benefits of BOI approval and stay compliant with ongoing requirements.

How can Victory InterLaw assist with BOI procedures?

Victory InterLaw offers comprehensive support through every stage of the BOI process:

• Initial Consultation: Assess your business and investment goals to determine eligibility for BOI incentives.
• Application Preparation and Submission: Prepare and submit your application, ensuring all requirements are met and documentation is complete.
• BOI Liaison and Negotiation: Act as your representative in communications with the BOI, addressing any queries or concerns that arise.
• Post-Approval Compliance: Provide ongoing support to ensure compliance with BOI conditions, including reporting and operational milestones.
• Project Modification Support: Assist with modifications or amendments to your BOI-approved project as your business evolves.

With over 20 years of experience, Victory InterLaw is your trusted partner in navigating the complexities of BOI procedures and maximizing the incentives for your business in Thailand.

Ready to Explore BOI Opportunities?

Take the first step towards unlocking the benefits of BOI approval for your business in Thailand. Contact Victory InterLaw today for a consultation and let our experts guide you through the process with confidence.