Thailand: New Promotion Strategy in Thailand 2023 – 2027

Thailand's Board of Investment (BOI) has issued a new investment promotion strategy for the next five years (2023–2027) which effected in January 2023. Replacing the BOI's current eight-year scheme (2015–2022).

To be eligible for a BOI Thailand promotion, your business has to fall within either of these categories:

• Section 1: Agriculture and Agricultural Products;
• Section 2: Mining, Ceramics and Basic Metals;
• Section 3: Light Industry;
• Section 4: Metal Products, Machinery, and Transport Equipment;
• Section 5: Electronic Industry and Electric Appliances;
• Section 6: Chemicals, Paper, and Plastics;
• Section 7: Services and Public Utilities; and
• Section 8: Technology and Innovation Development.

There are many incentives for companies that are granted to BOI companies.

1.  Some BOI companies are exempted from corporate income tax for up to eight years.

2.  Some BOI companies are also provided a 50% reduction of the normal corporate income tax rate for up to 5 years after the period of tax exemption.

3.  A BOI company can carry losses forward to the period of when they are required to pay taxes.

4.  Any dividends distributed during the income tax period are also exempt from income tax.

5.  There are tariff exemptions or reductions on the important of new machinery or raw materials.

6.  Work permits are provided for the foreign national owners and BOI companies may also bring skilled foreign workers and experts to work.

7.  Some BOI companies can own land for the purpose of their business operation

8.  BOI companies can also take out or bring money into Thailand using a foreign currency.

Foreign Employees

In general, Foreigners who intend to work in the Kingdom of Thailand have to deal with the Thai Visa regulations and applicable work permit requirements. The relevant visa which needs to be presented upon entering the country for work purposes is the so-called Non-Immigrant-B visa. Other visa categories apply for the employee’s family members. Some visa exceptions apply for specific groups, e.g. members of the diplomatic corps. Generally, a foreigner working in Thailand must obtain a work permit before commencing work. Work permits, which have been approved by the labor offices, may be issued as a one year work permit and extended over the period stipulated in the applicant’s Non-Immigrant visa. The Labor Department will in principle grant an initial duration of one year for the work permit which is subject to subsequent renewal. Some types of work permits could be approved for the duration of two years such as a work permit for Representative offices, companies with registered capital exceeding 30 million Thai baht, as well as work permits for BOI-promoted companies.

As a part of new promotion strategy, the new adjustment of requirement for the application of Thailand Long-Term-Resident visas has been announced since September 1, 2022. There are many periods of Long-Term-Resident visas which includes the period granted under BOI-promoted companies. Foreigners also can submit the application and provide supporting evidence to Thailand BOI.

Sources:

1.  BOI Guide 2023 -2027 (Thai Version available only)

2.  Investment Promotion Guide 2022, Thailand Board of Investment

3.  Getting to know BOI, Thailand Board of Investment

4.  Investment Promotion Act B.E. 2520.

5.  https://www.eeco.or.th/en/business-opportunities

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