Thailand BOI promoted companies which applied for BOI promotion during 1 January 2014 – 30 June 2016 and are in the categories that receive corporate income tax exemption will be able to receive more years of tax exemption and 50% tax reduction as additional Thailand BOI benefits.
Conditions:
- The company must have an actual investment as prescribed by the BOI.
- The expenditures used in the calculation of the actual investment (excluding cost of land and working capital) include:
- Construction costs or lease of over 3 years
- Preliminary expenses or pre-operating expenses which includes company setup costs, travelling, legal fees, government fees.
- Machinery costs, installation and test run costs.
- Other assets which include office equipment and vehicle (for newly set up companies), patent fee, concession fee and other asset related to natural resources paid to the government.
- The company must start production or service and earn income from the promoted project within 2017. It cannot earn income from the BOI project before 16 November 2015.
- The company must file a form to receive additional benefits attached with proof of investments and first income from its production or operation within 30 June 2018
Additional BOI tax benefits
- If the actual investment between 16 November 2015 – 30 June 2016 is not less than 70% of the all investment (excluding cost of land and working capital) and earn income within 2017, the company will get an additional 4 years of income tax exemption and 5 years of 50% income tax reduction. *
- If the actual investment between 16 November 2015 – 30 June 2016 is not less than 50% of the all investment (excluding cost of land and working capital) and earn income within 2017, the company will get an additional 3 years of income tax exemption and 5 years of 50% income tax reduction. *
- If the actual investment between 16 November 2015 – 31 December 2016 is not less than 50% of the all investment (excluding cost of land and working capital) and earn income within 2017, the company will get an additional 2 years of income tax exemption and 5 years of 50% income tax reduction. *
- If the actual investment is less than 50% of the all investment (excluding cost of land and working capital) within 2016 but the company is able to earn income within 2017 (but not before 16 November 2015), the company will get an additional 1 year of income tax exemption for general zones or 2 years for the border special economic development zones. *
* Note: In all cases that get additional tax exemption benefits, the total number of income tax exemption years combined must not exceed 8.
Contact Thai Lawyers for setting up a BOI company in Thailand so you can have 100% foreign ownership of your business and get many work permits. See Thailand BOI benefits here.