March 21, 2023

New Initiatives “Retention & Expansion Program” and “Relocation Program.” From BOI | MBMG GROUP

New Initiatives “Retention & Expansion Program” and “Relocation Program.” From BOI | MBMG GROUP

Retention & Expansion Program which was introduced by the BOI in recent times, is aimed at enabling established companies that have invested in Thailand to maintain their presence in the country and expand their investments on an ongoing basis.

This program is designed to encourage existing BOI-promoted companies to expand their operations in Thailand by providing them with various incentives and benefits.

To qualify for the program, companies must meet several criteria, including having received BOI promotion for at least three investment projects valued at a minimum of 10,000 million baht (excluding land costs and working capital) over the past 15 years (2008-2023), and having applied for new investment projects worth 500 million baht or more (excluding land costs and working capital). Additionally, companies must apply for the new program by the end of 2023. Upon approval, projects will receive a range of sector-specific benefits, as well as other additional incentives.

The benefits:

  • Companies categorized as A+ can enjoy up to 13 years of corporate income tax (CIT) exemption, with an additional 3 years of exemption available beyond the initial 10-13 year period.
  • For A1 and A2 companies, the program offers 8 years of CIT exemption followed by a 50% reduction for the next 5 years.
  • Companies in the A3, A4, and B categories may be eligible for up to 5 years of CIT exemption, with the potential for an additional 3 years of exemption.

Depending on their classification, approved projects can receive between 0-13 years of CIT exemption, with the length of the exemption period varying by category.

Relocation Program is designed to attract investors who wish to move their business operations to Thailand. In addition to offering a range of incentives, this program encourages companies to consider relocating their entire production plant, regional office, and research and development center to Thailand for a more comprehensive business relocation.

The BOI’s program includes two sub-programs: one for new investment promotion applications in production projects, and one for investment projects in existing productions that are already receiving benefits under the A category.

The eligibility criteria for these two sub-programs are as follows:

I. New investment applications in production projects

  • Companies must have applied for both a production project and an International Business Center (IBC).
  • Companies must apply for the benefits by the end of 2023.

II. Investment applications in existing production projects

  • Companies must have applied for an International Business Center (IBC).
  • Companies must apply for the benefits by the end of 2023.

Projects that are approved under the program will receive a set of benefits, including non-tax benefits, specific to production projects. 

If a project involves both production and an International Business Center (IBC), it will receive standard benefits under the production component as well as an additional 3 years of corporate income tax (CIT) exemption (with a total exemption period not exceeding 8 years) and other non-tax benefits. 

Similarly, projects that include production, an IBC, and a Research and Development Center will receive standard benefits under the production component and an additional 5 years of CIT exemption (with a total exemption period not exceeding 8 years) and other non-tax benefits.



Disclaimer: The above information has not been independently verified. This investment brief is given for information only and does not represent an investment proposal, recommendation or advice to invest in the shares or business of the subject company. Additional information shall be made available to interested parties subject to the execution of the requisite confidentiality undertakings. The financial information, actual and/or forecast, provide herein is based on management representation.

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