If you are considering to establish your bag, shoe, leather or artificial leather manufacturing business in Thailand, you can do so through the promotion given by Thailand Board of Investment (BOI) to benefit from numerous incentives. This means you will own the business 100% as a foreigner.
Depending on your investments or expenditures on research, design or product development during your first three years, your granted incentives differ.
The two different scenarios are the following.
- Projects with investments or expenditures on research, design or product development of not less than 0.5% of the project’s total revenue of the first 3 years combined.
Activity-based Incentives
- 3-year Corporate Income Tax exemption + merit based incentives
- Exemption of import duties on machinery
- Exemption of import duties on raw materials for use in production for export
- Non-tax incentives
- Projects with no investments or expenditures on research, design or product development or if the investment on research, design or product development is less than 5% of the project’s total revenue of the first 3 years combined.
Activity-based Incentives
- Exemption of import duties on machinery
- Exemption of import duties on raw materials for use in production for export
- Non-tax incentives
If you have any questions regarding the process of the Thailand BOI promotion and if you are looking for a competent partner with years of experience to set up your business in Thailand, please don’t hesitate to contact ThaiLawyers today.
We look forward to working with you.