Registering your company under the Thailand Board of Investment allows for a wide range of tax and non-tax incentives. These include exemptions and reductions on corporate income taxes, and reduced import duties on machinery.
It also removes the requirement that companies employ a four-to-one ratio of Thai to foreign staff. However, the process of obtaining a BOI certificate can be difficult.
The process of registering a company with the Thailand Board of Investment can be a long and tedious one. It’s best to seek professional assistance from an agency that can provide a full range of services related to BOI registration. This will save you time and money in the long run.
The BOI provides many tax and non-tax benefits for foreign investors who establish businesses in the country. These benefits include tax exemptions, 100% foreign ownership of a company, work permit and visa support, and land acquisition rights for industrial projects.
However, the specific advantages and incentives provided by the BOI can vary based on business activity and investment amount. To ensure that your company qualifies for these benefits, it’s crucial to seek guidance from legal and business professionals. They can help you prepare your application and make sure that all the necessary documents are submitted. They can also provide guidance on the current taxation laws in Thailand.
The BOI offers many incentives to FOREIGN as well as local entrepreneurs, depending on their company activities, investment amounts and the location of the business. It is important for foreign business owners to know the current incentives offered by BOI and make sure their company qualifies for these. Our professional team can help with this by explaining the current benefits and by ensuring your company is in line with the BOI promotion policies and regulations.
Once you have received a positive resolution from the BOI, you are generally given six months to register with the Department of Business Development. To do this, you will need to submit the required forms as well as evidence that you have injected the minimum share capital of 1M+ THB.
You will also need to notify the revenue department within 60 days of starting operations and obtain a tax ID and VAT certificate. As a BOI-promoted company, you will be subject to rigorous accounting and reporting protocols.
The directors must at least twenty-one days before the meeting forward a report called a ‘statutory report’ to all members of the company containing important details about the formational aspects of the new company such as how much share capital has been taken up, cash received in respect of such shares allotment and an estimate of the preliminary expenses.
A BOI promoted company enjoys a number of tax and non-tax incentives, such as exemption or reduction of import duties on raw materials, an express procedure for applying for visas and work permits for foreign workers and executives, and reduced payroll taxes. In addition, some provinces and industrial zones offer additional and longer-lasting benefits to companies located within them.
To apply for BOI promotion, companies must first submit all relevant forms and attend a presentation with the Thai government. Depending on the business category, this interview may require the founders to travel to Bangkok. Plizz’s lawyers can help you prepare for this interview, and we have successfully helped many clients secure BOI promotion.
A BOI-promoted company must report its finances to the Revenue Department. The department closely inspects these companies to make sure that the tax incentives are only applied to areas of business related to the BOI promotion. This is why it’s important to have a Thai accountant who understands the BOI process.
After the forms are submitted, the BOI will schedule an interview with the company founders. Plizz’s lawyers help them prepare for this interview, so they know what to expect and can answer any questions. This normally takes one to two weeks.
Foreign investors can own 100 percent of a Thai BOI company, as long as the business falls under the eligible activities and has been approved for a BOI incentive. These include years of corporate income tax exemption, reduced import duties on machinery and raw materials, deductions for transportation, electricity and water and the ability to transfer money abroad in foreign currency. In addition, non-tax privileges allow these companies to hire skilled foreign workers and own land for industrial projects.