In Thailand, the Board of Investment (BOI) plays a vital role in promoting and developing businesses. BOI provides a range of incentives and support to encourage both local and foreign investors to invest in the country. In this article, we’ll explore what BOI is, the benefits it offers, and how it differs from the typical Small and Medium Enterprises (SMEs) in Thailand.
What is BOI
The Board of Investment (BOI) is a government agency responsible for promoting and facilitating investment in Thailand. It aims to boost the country's economic growth by attracting investors to specific sectors. BOI offers various incentives to businesses that qualify for its programs, including tax exemptions, duty-free imports of machinery and raw materials, and support for technological development.
Benefits of BOI
Corporate Income Tax Exemption : Businesses promoted by BOI are entitled to corporate income tax exemptions for a specified number of years, depending on the type of business.
Duty-Free Import of Machinery and Raw Materials : BOI-approved companies can import machinery, raw materials, and components without paying customs duties.
Financial Support : BOI provides access to low-interest loans and other financial assistance to support business development.
Employment Support : BOI promotes job creation in targeted development zones and encourages businesses to hire local talent.
Key Differences Between BOI and SMEs
To better understand how BOI-promoted businesses differ from regular SMEs, here’s a comparison table
Category | BOI | SMEs |
Government Support | Supported by the government through BOI programs | Relies on support from other organizations |
Tax Benefits | Corporate tax exemption and duty-free imports | No specific tax incentives for most SMEs |
Access to Financing | Access to specific financial programs through BOI | Must seek funding from banks or investors |
Employment Incentives | Promotes job creation in specific areas | No specific employment support programs |
Focus on Development | Focus on innovation, technology, and infrastructure | Primarily focused on basic business growth |
Conclusion
BOI is an excellent option for entrepreneurs who want to leverage government incentives and support to grow their businesses in Thailand. In contrast, regular SMEs do not receive the same level of benefits, which can make it more challenging to compete. Entrepreneurs should carefully consider joining the BOI program to maximize their business potential and succeed in a competitive market.
If you're looking for assistance in setting up or managing your business in Thailand, iACC Professional is here to help. We specialize in accounting, tax, and auditing services, and we can guide you through maximizing the benefits of BOI or managing your taxes efficiently.
📞 Contact us today for more information:
Phone: +66 86 345 0265
Email: sirinya.iacc@gmail.com
Website: www.iaccprofessional.com
We look forward to helping your business thrive and achieve sustainable success!