Currently, the Board of Investment’s condition for the promoted software activity is that it has to spend Baht 1.5 million on Thai IT salaries per year and must comply with that for as long as the company wants to maintain the BOI status and all of its benefits as follows:
- 5 year corporate tax and dividend tax exemption. This 5 year period starts from the day the company issues the first invoice but the tax exemption can be used only when the company can show that it spend Baht 1.5 million on Thai IT personnel salaries (at the latest from the third year onwards.) And the amount of tax that can be exempted for is equal to the amount spent on Thai IT personnel salaries in the same accounting year.
- The company can be 100% foreign owned
- The company can own land enough for having an office.
- Less restrictions on work permit applications for qualified foreign employees
The company will have 36 months, from the BOI’s certificate date, to file an official operation opening form with the BOI, which most likely needs someone like us to help. That is when the company will have to show:
1. A software that have been created within this company by the programmers on the company’s payroll, using some new computers that the company bought.
2. The evidence of following the steps of software development process in the creation of this software. The steps will be written out in the BOI application.
3. The company’s employees’ salary withholding tax returns of the latest accounting year to show that the company has spent Baht 1.5 million on Thai IT guys salaries and their IT degree certificates
Before the 36 months, the company can operate like normal BOI companies. However, if 36 months have been completed and the company cannot show the above 3 things, the deadline can be extended by 1 year upon application. After that if the company still cannot do it, the BOI status will be gone.
If you are planning to do software development business in Thailand, you came to the right place. Thai Lawyers can help you register, get the BOI promotion, work permit applications for your expat employees and open the BOI operation.