Loss to Carry Forward for BOI Companies in Thailand

How do BOI companies in Thailand that get income tax exemption use the losses from its operation?

In general, companies in Thailand with BOI benefits from section 65 Ter (12) of the Revenue Code, which allows losses to be carried forward for five accounting periods and to be offset against future profits from all sources. Net loss of each year can be deducted against net profits on a year-by-year basis for 5 years following the year of the loss, while Investment Promotion Act, Section 31, the Board of Taxation Ruling No. 35/2540 (1997) and the Departmental Notification dated 5 February B.E. 2535 (1987) specified the tax treatment for the use of a Thailand BOI company’s tax losses to be carried forward differently.

Per Board of Investment promotion, a BOI company in Thailand has the right to deduct the losses occurred during the tax holiday from the net profit generated during the five years after the tax holiday period. The loss incurred during the tax holiday period should not be used to subtract from the annual profit arising during the tax holiday period because such profits are tax exempt.

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