Everything You Need to Know About the BOI: Why Businesses Registered at True Digital Park Are Exempt From Tax

  • Technology, Business
  • November 01, 2022
Everything You Need to Know About the BOI: Why Businesses Registered at True Digital Park Are Exempt From Tax
Thailand is a popular destination for investors, both foreign and local. They do business in Thailand for several reasons, including the country’s excellent resources, infrastructure, and skilled labor in agriculture, industry, services, and technology. That’s why the Thai government set up the BOI, which promotes and supports investors who do business in Thailand and provides various other benefits to attract investment in the country. In this article, we’ll go over everything you need to know about the BOI, from what it is to how to get a BOI certificate.

Thailand is a popular destination for investors, both foreign and local. They do business in Thailand for several reasons, including the country’s excellent resources, infrastructure, and skilled labor in agriculture, industry, services, and technology.

That’s why the Thai government set up the BOI, which promotes and supports investors who do business in Thailand and provides various other benefits to attract investment in the country. In this article, we’ll go over everything you need to know about the BOI, from what it is to how to get a BOI certificate.

 

What is the BOI?

 

BOI stands for the Board of Investment or the Office of the Board of Investment of Thailand. The government agency promotes foreign investment in Thailand through offering incentives, information, and services to BOI-affiliated entities.

The BOI launched on July 21st, 1966, to advance industries in Thailand and create a foundation for business development across various fields.

 

drone spraying insecticide

 

The 8 Types of Activities Eligible for Investment Promotion

 

The BOI promotes eight types of businesses across various industries. Here are the categories a business needs to fall under to be eligible for a BOI certificate:

 

  1. Agriculture and agricultural products: agricultural businesses and agricultural products such as the cultivation of economic crops, plant breeding, the production of food and medical drugs, etc.
  2. Mining, ceramics and basic metals: minerals, ceramics and basic metals businesses, including mining, glass production, ceramics production, iron and other base metals production, etc.
  3. Light industry: light-industry businesses that manufacture textiles, medical devices or parts, toys, bags, shoes, etc.
  4. Metal products, machinery, and transport equipment: the manufacture of metal, machinery and transport equipment, including machinery, equipment and parts manufacturing, engine gear and drivetrain production, etc.
  5. Electronic industry and electric appliances: the electrical and electronic appliances industry, including the manufacture of electrical appliances, software development and production, design and the manufacture of electronic components, etc.
  6. Chemicals, paper, and plastics: chemicals, plastics, and paper businesses, including drug and chemical manufacturers, paper and packaging producers, polymer producers,  the production of publications, etc.
  7. Service and public utilities: services and utilities including mass transit, biomass power generation, waste, wind, sunlight and water, medical services, etc.
  8. Technology and innovation development: technology and innovation development businesses in biotechnology, nanotechnology, digital technology, advanced materials science technology, etc.

 

air and ship logistics systems

 

What benefits do companies requesting investment support from the BOI get?

 

Foreign investors invest in Thailand for the numerous benefits the BOI has to offer. Here they are:

 

Tax Related Benefits

 

  • Exemption from corporate income tax for a maximum of 13 years, depending on the type of business and conditions.
  • Receive a 50 percent income tax reduction for another 5 years, only for businesses in the investment promotion zone True Digital Park is also considered as one of the investment promotion zones.
  • Exemption of import duty on machinery.
  • Exemption of import duty on raw materials for export.
  • Exemption of import duty on goods imported for use in research and development.

 

Non-Tax Related Benefits

 

  • Allowing foreigners to hold 100% of the shares (except for activities under List One annexed to the Foreign Business Act or those specifically specified by other laws).
  • Permission to own land ownership.
  • Craftsmen/experts are allowed to work.

 

Register Your Company at True Digital Park, Receive a Corporate Income Tax Exemption For Up to 8 Years

 

Applying for a BOI promotion isn’t difficult. difficult. If you’re interested in receiving an investment promotion from the BOI, you’ll need to prepare the necessary documents and make sure your business meets the rules and conditions set by the BOI. If you do everything properly, your company has a high chance of getting BOI support.

The BOI is now encouraging companies and startups to set up companies at True Digital Park by offering additional benefits, including corporate tax exemptions, to entrepreneurs registering for companies. This means that the tax exemption that companies receive from the BOI is being extended from seven years to eight.

In addition to the BOI benefits, True Digital Park is also a great place for startups and tech companies, as it spans over 200,000 square meters with full facilities and skill development programs, as well as space for experts from diverse fields to meet and discuss business opportunities. If you’re interested in setting up a company at True Digital Park, click here.

 

Tags

  • BOI
  • Board of Investment
  • Investment

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