Thailand Board of Investment has one of the conditions for the promoted companies in some promoted activities to have a minimum level of investment capital. Construction costs can be included as part of such investment. Moreover, in case the promoted companies lease an office space, land, building or factory, the total lease amount specified in the lease agreement can be counted in place of construction costs but the lease period must be longer than three years (at least 36 months and 1 day).
According to the law, if the lease is for more than three years, it needs to be made in writing and registered at the Department of Lands. Most landlords in Thailand choose a term in a lease agreement of not more than 3 years in order to avoid the registration. Therefore, if a BOI promoted company has to lease land, building, or an area of the building, it is necessary to make sure that the contract is longer than 3 years and it is legally registered with the Department of Lands. Otherwise, all amounts of rentals will not to be counted as part of investment to satisfy the BOI condition.
The government fee to be paid at the Department of Lands is 1% of the total amount of rent of whole term.