Professional services regarding BOI promotions

PUGNATORIUS Ltd. is the Bangkok-based specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property developments and acquisitions. The law firm possesses broad know-how and hands-on experience in the application for investment promotion at the BOI, but also how to manage the day-to-day operations of a BOI promoted Thai company.

Red-tape and red carpet: The Board of Investment is a cardinal component of the industrial policy of Thailand. Each significant foreign direct investment should carefully examine whether an investment promotion under the BOI regime is legally possible and economically meaningful. Red carpet instead of red tape – with a price tag. PUGNATORIUS can guide your BOI project through the red-tape requirements, legal hurdles, and industry practice in Thailand. Lessons you do not want to learn the hard way.

Thailand’s investment promotion requires an extensive application process with the Board of Investment. It grants tax incentives, especially tax holidays, and non-tax incentives, including 100% foreign shareholding and land ownership. During the BOI application process, the size, scope of investment promotion, and the underlying conditions are negotiated with the foreign investor. Thailand’s regulatory framework gives the BOI a wide leeway to overrule legal requirements for foreigners and Thais.

BOI conference: The lawyers of PUGNATORIUS Ltd. keep close contact with the BOI’s headquarters in Bangkok. The law firm has been the speaker on BOI events directly at the governmental BOI offices. Its publications on BOI application strategies, ongoing compliance obligations, and BOI structuring are well received by clients and readers.

Support and legal assistance for BOI projects and companies

The law firm provides an international clientele mainly with these seven BOI-related services:

#1. BOI promotion advice: The law firm provides clients with a realistic outlook of the requirements and implications of a BOI investment promotion for Thailand projects. This includes a deep analysis of the promotion opportunities for specific foreign investment in Thailand as well as a fair explanation of the advantages and disadvantages of a BOI promotion.

The overall investment project has to be structured BOI-efficiently and there is a clear scope of decisions to be made which will have a direct impact on the whole application process. 

#2. BOI application support: The law firm prepares the application for investment promotion and supporting documents, assists in the meeting with the BOI, negotiates the conditions, and supports the whole application procedure. The law firm is familiar with the questions which will be asked in the meetings, the conditions which will be offered, and the strategy to optimize the size, scope, and duration of the investment promotion. Much more than just a walk-through of the whole application process.

The BOI application process seems to be a straight-line process, but this is only true if the investor is willing to generously satisfy the wishes of the government for a transfer of know-how and a maximization of the investment amount and if he unnecessarily accepts certain fine-prints and guarantees. Just to find the fast-track through the BOI would mean to waive for the full benefits possible.

#3. Ongoing reporting and compliance requirements: The law firm assists regarding reporting requirements including Tor.Sor.310 the Annual Operating Report, accompanied by, above all, PND.50, PND.1.Kor, audited financial statements, and shareholders’ list. BOI promoted companies should not see the granted benefits as a donation but as a consideration for certain obligations and requirements. If promotion requirements are not fulfilled in later years, the investor should be prepared for certain penalties and punitive measures that have a retroactive effect.

PUGNATORIUS Ltd. provides advice on compliance requirements and has the know-how and experience to set-up a comprehensive risk management system during the BOI promotion period.

#4. BOI promotion management: After the investment promotion has been granted, the law firm assists in disputes with the BOI on the correctness and validity of the investment promotion application, proper reporting, and compliance with the investment promotion certificate.

PUGNATORIUS advises on the opportunities and requirements to refresh/renew the BOI investment promotion after the tax holidays elapsed. How to qualify as a new BOI project with old money, machinery, and ideas.

#5. Restructuring and exit advice: The law firm advises on the consequences of a restructuring of the promoted venture by a share transfer, a transfer of the business, or any other exit scenario. Details are explained in the article: “The transfer of Thai BOI companies“.

#6. BOI tax advice: Advanced legal and tax advice and assistance for BOI promoted companies and new applications for BOI investment promotion. Details are explained at “Seven tax structuring aspects for BOI promoted companies“. 

The investor needs cross-border tax planning to avoid later taxation of the tax-free profits in his home country. The release or reduction of customs and import duties have to be clever structured.

Each case is different. Telephone inquiries and ad-hoc email requests on Thailand’s legal and regulatory framework without details and documentation are not accepted by the law firm. Individual support and professional advice are available under a paid consultancy agreement only.