The Thailand Board of Investment operates under the Prime Minister’s Office and is the principal government agency for encouraging investment. it is well organized and headquartered in Bangkok.With it’s 14 overseas offices (Beijing, Frankfurt, Guangzhou, Los Angeles, Mumbai, New York, Osaka, Paris, Seoul, Shanghai, Stockholm, Sydney, Taipei, and Tokyo) BOI Bangkok serve as Thailand’s front desks in liaising with potential investors. The organization chart is publicly available and its officers typically speak fluent English. There are two units under the BOI that facilitate investment by speeding up the paperwork associated with government regulations. On the one side this is the “One Stop Center for Visas And Work Permits”. The OSC can process applications or […]
Legal services on BOI investment promotions
Thailand’s new investment promotion policy is governed by the “Seven-Year Investment Strategy” (2015-2021) which came into effect on January 1, 2015. Under the new rules the requirements to obtain an investment promotion are generally more ambiguous and the scope of investment promotion falls below the previous policy.
The law firm provides clients with a realistic outlook of the requirements and implications of a BOI investment promotion for Thailand projects. This includes
- an analysis of the promotion opportunities for a specific foreign investment in Thailand,
- a fair explanation of the advantages and disadvantages of a BOI promotion,
- a tax opinion regarding the tax implications in the home country,
- a walk-through for the whole application process,
- a smart application strategy,
- a review of existing promotion projects, and
- a comprehensive risk management for exit group projects.
Red carpet instead of red tape – with a price tag
The BOI application process seems to be a straight-lined 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.
Divergent from a simple attendance, the law firm offers to international investors an active management of the overall investment promotion application process. 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 size, scope and duration of the investment promotion.
However, the advice does not start when the applications is filed and does not stop when the investment promotion certificate has been successfully granted.
- 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.
- The investor needs cross-border tax planning to avoid a later taxation of the tax free profits in his home country.
- The release or reduction of customs and import duties has to be clever structured.
Just to find the fast-track through the BOI would mean to waive for the full benefits possible.
Risk management and maintenance of BOI promoted companies
BOI promoted companies should not see the granted benefits as a donation but as a consideration for certain obligations and requirements. There is more to be done than just to file till July 31 Tor.Sor.310 the Annual Operating Report, accompanied with, above all, PND.50, PND.1.Kor, audited financial statements and shareholders’ list. The later denial of a already granted investment promotion is very unusual. However, if promotion requirements are not fulfilled in later years, the investor should be prepared for certain penalties and punitive measures which have retroactive effect.
Advanced legal and tax advice and assistance for BOI promoted companies and new applications for BOI investment promotion. Sophisticated solutions in a complex legal environment. Serious legal and tax advice in the land of smile.