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ResourcesCorporate and Tax AdvisoryThailand Tax LawTax Holidays for Companies Promoted by the BOI in Thailand

Tax Holidays for Companies Promoted by the BOI in Thailand

Transcript of the above video:

As the title of this video suggests we are going to be discussing Board of Investment promoted Companies; the Board of Investment is often described by its acronym, BOI here in Thailand.

The BOI is tasked with essentially promoting various businesses that will benefit Thailand and also sort of working with those business to better facilitate more growth which will result in benefits for the Kingdom, benefits for the business community, benefits for the overall economy.

One of the most beneficial things, for lack of a better term, of gaining BOI certification is the possibility of gaining a tax holiday in Thailand. What do we mean by this?  Well basically exactly what the phrase sounds like. It is gaining a holiday from paying any taxes in the Kingdom. Not any taxes. Let me clarify that. Specifically, generally speaking we are talking about Corporate Income tax.  There are tax holidays from having to pay Corporate Income tax here in the Kingdom. There are other various taxes that tax holiday may not apply to but for many corporations wishing to do business especially in a global context, tax holidays are highly, highly sought after and here in Thailand they can give away a number of rather lucrative tax holidays to those Companies and to those Organizations which fit the criteria. Tax holidays can often times, it has been my experience, I have seen them issued in 5 year increments although that being said, they can be issued for as much as 8 years depending on whether or not the undertaking in question meets the appropriate criteria the BOI deems is appropriate for such a tax holiday.

So the thing to take away from this video is, not only can BOI promotion be beneficial from the standpoint that it can provide a land ownership benefit which we previously talked about, a foreign business licensing which allows a company to operate notwithstanding the provisions of the Foreign Business Act  here, it may also provide substantial, benefits in terms of basically heavy mitigation of tax liability on the corporate endeavors of the company doing business here in the Kingdom of Thailand.