Foreign Investment Markets in Thailand
- March 25, 2017
- Haris & Associates
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In May 2013, the BOI shared its intentions to improve its policy regarding foreign ventures. The goal of this is to move focus on different markets. Before the policy change, Thailand’s BOI possessed promoted overseas investment in the following areas:
* Agriculture, and the production of all products related to the field.
* Human resource development
* Technology R&D
* Metallurgic companies, including mining
* Light industrial markets
* Metal products
* Transport equipment
* Manufacture and development of electronics and electrical appliances.
* Chemical engineering
* Paper and plastic processing
* Software development
Under its new policy, the BOI sought to shift its promotion to new markets. These markets are:
* The hospitality industry
* R&D for advanced technologies
* Automotive industry
* Food production
* Medical and scientific equipment manufacturing
* Infrastructure development
* Electronics equipment manufacturing
* Industries that provide support to businesses, i.e. BPO companies
* Primary industries
What happens whenever a foreign investor starts a business in these marketplaces?
Because they are special markets outlined by the BOI for foreign investment, investors get to enjoy many perks using their decision to establish a business operating in these markets.
These benefits include:
* Exemption from paying corporate tax for 8 years after incorporation
* No limits in the number of foreign employees that they can hire and bring into the Kingdom.
* 100% of the Board can be made up exclusively of foreign nationals.
* Exemption from paying duties in bringing in machinery for the business.
* Exemption from tax duties normally imposed in imported raw materials for use in manufacturing products intended for exporting out of Thailand.
* Costs incurred in utilities can be deducted from tax duties.
* Companies can send funds in foreign currency back to their home country.
These benefits aren’t available to shareholders who put in their profit markets that are not being promoted by the Board of Investments. In addition, there’s also other benefits accorded to certain foreign nationals due to trade treaties their house countries may have with the Kingdom.