BOI in Chiang Mai

admin Business in Thailand, Thai Law

If you are doing business in Chaing Mai, your company may be eligible for valuable incentives from Thailand’s Board of Investment (BOI). For example, BOI promoted businesses are automatically granted a business licence.

Investment Promotion Criteria

Regulations set requirements for each industry and sub-industry eligible for promotion.  The Board considers the business plan, the viability of the project, and the project’s compliance with the relevant regulatory criteria.  Each project is considered on a case by case basis, and exceptions can be made for projects of particular importance.  Several general requirements must be met for all projects.

• Value added should be at least 20% for most industries (except agricultural processing and electronics manufacturing).
• Liabilities should not exceed three times the registered capital.
• Modern production equipment and processes should be used.
• A minimum investment of 1 million THB exclusive of working capital and land acquisition costs must be made.  The threshold is higher for certain industries.
• All necessary environmental protection measures must be in place.
• A feasibility study is required for projects with an investment of 80 million THB or more (exclusive of land acquisition costs and working capital).

How to Apply for BOI Promotion

Before a business applies for promotion, they should research the project eligibility requirements by consulting BOI experts, such as those at Siam Legal.  The BOI maintains a regional office in Chiang Mai at the Airport Business Park if you want to consult with BOI officials. Once the necessary research is complete, prepare an application and gather the required documentation.

Within 10 days of submission, schedule an interview with the BOI.  The interview gives you a chance to pitch your project and address any concerns the BOI may have.

After the interview, the BOI will evaluate the project.  Projects with an investment of 80 million THB or less will be considered within 40 days.  Projects with an investment between 80 million THB and 750 million THB must be submitted to a BOI subcommittee and will be evaluated within 60 days.  Projects with an investment over 750 million THB must be sent to the full BOI board and will be evaluated within 90 days. Once a decision has been made, a notice will be sent out within 7 days.

Projects that are approved have 30 days to accept BOI promotion.  Once the acceptance is received, the BOI will provide a promotion certificate.

Businesses have 6 months from the time of acceptance to submit company establishment documents to the Department of Business Development.

Non-Tax Incentives

Non-tax incentives include work visa eligibility for skilled foreign workers, special permission to own land (foreign land ownership is generally prohibited), and permission to remit money internationally.

Tax Incentives

The size of a tax incentive usually depends on the project’s location.  Chiang Mai province and many surrounding areas are are a designated investment promotion zone and given significant tax incentives, such as a extended corporate income tax waivers.  Projects developed in specially designated industrial estates may also receive greater tax incentives.

The BOI uses two tax incentives.  Most promoted businesses in Chaing Mai receive an import duty exemption when they import industrial equipment and necessary machinery.  In addition, most projects qualify for a period of exemption from corporate income tax exemption and import duties on raw materials.  Some activities classified as “priority activities” and “priority activities of special importance and benefit to Thailand” receive additional special tax incentives.

Speak to a lawyer in Chiang Mai today about BOI incentives in Thailand and how to apply for BOI accreditation in Thailand for your business.

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