Further to our previous update on “The BOI’s new 5-year investment promotion strategy,” the Thailand Board of Investment (BOI) has issued new announcements to respond to new businesses and future investment trends and to attract investors to invest in Thailand. The BOI aims to boost innovation, competitiveness, and inclusivity as well as sustainable development of Thailand’s economy in accordance with the current National Economic and Social Development Plan and the country’s development policies.
The new announcements are:
- Announcement of the Board of Investment No. 8/2565 Policies and Criteria for Investment Promotion
- Announcement of the Board of Investment No. 9/2565 re. Measures to Promote Investment in Industries that are important to the Country’s Development
The announcements set out the BOI’s policies and key criteria for investment promotion and the updated list of activities that are eligible for investment promotion. This list repeals and replaces previous lists which have been issued by the BOI from time to time since the main announcement issued in 2014.1
In more detail
The announcements apply to all investment promotion applications submitted to the BOI from 3 January 2023. Existing projects, such as those that have already applied for and/or obtained an investment promotion from the BOI, can also request to be governed under the new announcements as long as they have not yet exercised tax privileges. The request must be submitted to the BOI by 30 June 2023.
Amendments to existing activities
- International Business Center (IBC)
The BOI now promotes businesses to provide a lease of office or factory building space to associated enterprises. This means that majority-foreign owned companies who wish to provide a lease to their associated enterprises can also explore the BOI option in addition to the foreign business license option which has been commonly used in the past.
- Trade and Investment Support Office (TISO)
As you may be aware, the BOI promotes various types of businesses under the TISO category including (i) business advisory service and (ii) activities relating to machinery, engines, tools and equipment, including importing for wholesale, training services, installation, maintenance and repair, and calibration.
For both activities mentioned above, the BOI has made minor amendments for clarity and to reflect their policy and interpretation. It is now clearly stated that:
- The business advisory service is not eligible for accounting, legal, advertising, architectural and civil engineering businesses.
- The activities relating to machinery, engines, tools and equipment are only eligible for those manufactured by the applicant’s affiliated and group companies or where the applicant has been officially authorized as the distributor by the manufacturer.
Re-grouping of incentives and privileges
The BOI renamed the previously “technology and Innovation Development” incentives as A1+, which grants an exemption of corporate income tax for up to 13 years. The B1 and B2 incentive groups were also grouped together into B. A summary of the basic incentives is also provided below for your reference. Currently, the business activities that are eligible for A1+ incentives are:
- Biotechnology development
- Manufacture of wafer
- Advanced materials technology development
- Nanotechnology development
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1 Announcement of the Board of Investment No. 2/2557 Re: Policies and Criteria for Investment Promotion.