In this article we will share how the Board of Investment (BOI) Supports Business in Thailand.
Throughout the world, Thailand is known as a friendly haven for business. That reputation is backed up by international rankings. For instance, the World Bank awarded Thailand a 78.45 Ease of Doing Business (EODB) score in its 2019 report. That score—up 1.06 points from the prior year—earned Thailand 27th place in the EODB ranking. Thailand was 8.14 points away from list-leader New Zealand, which scored 86.59.
The Swiss-based International Institute for Management Development (IMD) ranked Thailand 25th in its 2019 World Competitiveness Index. The United Nations placed Thailand 40th in the world and first in Southeast Asia in its latest Sustainable Development Goals Report, an improvement of 19 places.
The world agrees that Thailand is a friendly home for business. It also recognizes that one of the reasons for Thailand’s favorable business climate is its Office of the Board of Investment (BOI). The BOI is the government agency under the Office of the Prime Minister that is charged with promoting investment into Thailand and Thai overseas investment.
Since 1966, the BOI has been the leading voice promoting both domestic and international investment in Thailand. Its objectives are to increase Thai competitiveness and help Thailand emerge from the middle-income trap by assisting the country in maintaining balanced, sustainable growth.
The BOI sets investment promotion policies under Investment Promotion Act No. 2 B.E. 2534, No. 3 B.E. 2544, and No. 4 B.E. 2560. Its influence extends overseas through regional offices in major world cities, including Osaka, Beijing, Stockholm, Taipei, Sydney, Frankfurt, Los Angeles, Mumbai, and Paris.
The BOI streamlines the process for businesses to set themselves up in Thailand, and it rewards those that serve spelled-out objectives through a host of enticing tax and non-tax incentives. For instance, eligible businesses can receive corporate income tax exemptions for up to 13 years. Except for certain specified businesses, 100% foreign ownership is permitted.
Per Thailand’s vision for its future, Thailand 4.0, the BOI maintains a general list of activities that are eligible for investment promotion. Tax exemptions are dependent on the amount invested or the expenditure for enhancing competitiveness.
The BOI clearly lists activities for which it offers incentives. In order of preference, here are businesses and industries that the agency rewards with incentives:
In conclusion, Thailand’s Board of Investment (BOI) helps smooth the path for foreign investors looking to do business in Thailand. Especially for those who perform Thailand’s promoted activities in the targeted Eastern Economic Corridor (EEC) near Bangkok, the BOI grants generous incentives.
Are you looking to set up your business in Thailand and make your first hire? You can also check out this article on Navigating Thai Labor Law
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