With many foreign nationals falling in love with Thailand’s natural charm and beauty, the government of Thailand encourages foreign direct investment by maintaining an open and market-oriented economy as a means of promoting economic development, employment and technology transfer. Thailand’s agriculture-based economy has transformed into an industry and manufacturing-based economy which is largely influenced by significant contribution of foreign investment.
Through the Board of Investment or BOI, the government arm of Thailand spearheading the campaign to encourage foreign investment in Thailand, the government promotes foreign investment. The BOI lists seven categories of economic activities, covering hundreds of types of businesses that are eligible for investment incentives.
Potential foreign investors who meet any or all the following criteria are eligible for BOI incentives:
The Board of Investment (BOI) offers promotions to investors categorized as either tax incentives, or non-tax privileges.
Other Tax Benefits Offered to Foreign Direct Investment
Thailand Law states that a company that chooses to register under Thai law shall enjoy various tax benefit schemes such as:
As part of Thailand government’s effort to encourage foreign investment in the country, some types of companies are given entitlement to a corporate tax rate (mandatory 30% rate) reduction as follows:
Tax breaks are bonuses for any business. It is in tax breaks that businesses get to enjoy more of their net profit in which some businesses would share to their employees in the form of bonuses and sometimes, stocks. If tax breaks are enjoyed by local businesses in Thailand, this is what also magnets foreign investors in the country.
With Thailand’s current economic condition, more and more foreign investors are attracted to set up a business not only in the metropolis, but in the provinces as well. Hence, decreasing the unemployment rate inside and outside Thailand’s metro; another good sign that a country is going forward economic progress.
To get a better view of Thailand’s tax break law, tax advisory services are made available for foreign investors who wish to set up business and avail tax holiday in the country. There are available tax planning services in Phuket, Bangkok, Ayutthaya and in other provinces a foreign investor can seek counsel to before setting up any business in Thailand.
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