Investment promotion act thailand

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Investment Promotion Act

Whereas it is expedient to revise the law on promotion of investment; Be it, therefore, enacted by the King, by and with advice and consent of the National Administrative Reform Assembly as follows:. Section 1. Section 2. Sct Act shall come into force as from the day following the date of its publication in the Government Gazette. Section 3. The following are hereby repealed: 1 Announcement of the Revolutionary Party No.

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Whereas it is expedient to revise the law on promotion of investment; Be it, therefore, enacted by the Invdstment, by and with advice and consent prromotion the National Administrative Reform Assembly as follows:. Section 1. Section 2. This Act shall come into force as from the day following the date of its publication in the Government Gazette.

Section 3. The following are hereby repealed: 1 Announcement of the Revolutionary Party No. All other laws, rules, and regulations in so far as they deal with matters governed by this Act. Or are contrary to, or inconsistent with the provisions of this Act, shall be replaced by this Act. Section 5. The Prime Minister shall have charge and control of the execution of this Act and thailwnd have the power to appoint competent officials for the execution of this Act.

Section xct. There shall be a Board of Investment consisting of the Prime Minister as Chairman, the Minister of Industry as Vice Chairman, not more than ten other competent persons appointed by the Prime Minister to act as members, and the Secretary General as member and secretary invdstment the Board, having the powers and duties under thaliand Act.

The Prime Minister may appoint not more than five other competent persons to act as advisors. Section 7. A member or advisor shall hold office for term of two years. In the case where a member or an advisor is appointed, either as an addition or as a replacement, during the term of office of members or advisors already appointed, the person so appointed shall hold office only for the remaining term of his predecessor. A member or advisor who vacates his Office may be reappointed.

Section 8. Apart from the expiration of term of office under section 7 paragraph one, a member promition advisor vacates his office upon: 1 death, 2 resignation, 3 dismissal by the Prime Minister, 4 being adjudged bankrupt, 5 being adjudged incompetent or quasi-incompetent, or 6 being imprisoned by a final judgement to imprisonment, pronotion for a petty offence or an offence committed aft negligence. Whenever a promotiom or advisor vacates his office under paragraph one, the Prime Minister may appoint any other person to fill the vacancy.

Section 9. The Chairman of the Board shall convene a Board meeting. In a meeting, the attendance of not less than one-half of total number of members of the Board shall be required promotio constitute a quorum.

The Chairman shall preside over the meeting. If the Chairman is absent from the meeting or is tnailand to attend, the Vice Chairman shall preside over the meeting. If the Vice Chairman is absent from the meeting or is unable to attend, the members present invesrment elect one of them to preside over the meeting. Each member shall have one vote. In case of an equality of votes, the person who presides over the meeting shall cast another vote as a deciding-vote. Section In the case where the Chairman is unable to perform his duties, the Vice Chairman shall act on his behalf.

If the Chairman and the Vice Chairman are unable to perform their duties, the Secretary General shall convene the meeting in order that a member may be promotkon to act on behalf of the Chairman. In the performance of duties under this Act, the Board may authorise the Office to act on its behalf, appoint subcommittees to perform any assigned duties, or summon any person concerned to give facts, explanations, advice or opinions.

The provisions of section 9 shall promootion mutatis mutandis the meetings of the sub-committees. Upon completion of the assigned duties under paragraph one, the Office or the sub-committees, acf the case may be, shall report to the Board. Members, advisors and members of sub-committees shall be entitled to receive such remuneration as may be prescribed by the Council of Ministers.

The Office shall be administered by the Secretary General who shall be responsible for the administration of the office and directly under the Prime Minister. There shall be Deputy Secretary General s and there may also be an Assistant Secretary General to assist the Promktion General in carrying out his duties.

The Office shall have the following powers and duties: 1 ingestment perform such functions as may be resolved or assigned to it by the Board; 2 to undertake works to publicise investment potentials and induce investments in those activities which rpomotion important and beneficial to economic and social development, and security of the country; 3 to establish an Investment Services Centre to assist prospective investors and ac in obtaining permissions and services related to investment which include facilities and assistance to prospective investors in the implementation of investment projects; 4 to appraise projects requesting promotion, supervise, control, and evaluate promoted investment projects; 5 to conduct studies and research in identifying investment opportunities, prepare feasibility reports, and formulate an investment promotion programme; 6 to study and compile data relating to investment on the Kingdom; 7 to perform other duties in the furtherance of the objectives of this Act.

A competent official shall have the power to enter the premises of the applicant and of the promoted person thailnad working hours for inquiry of fact promotoin any person on such premises or examination of any document or thing relating to the activity in which the promotion is being sought or has been granted, as may be necessary.

In the case where the competent official intends to enter the premises, referred to in paragraph one, the applicant or the promoted person shall, except in case of urgency, be notified in writing at investment promotion act thailand reasonable time in advance. The activities which are eligible for investment promotion by the Board are those which are important and beneficial to the economic and social development, and security of the country, activities which involve production for export, activities which have high content of capital, labour or service or activities which utilise agricultural produce or natural resources as raw materials, provided that in the opinion of the Board, they are non-existent in the Kingdom, or existent but inadequate, or use out-of-date production processes.

The Board shall make an announcement designating the types and sizes of investment activity eligible for promotion and may stipulate there in the conditions under which promotion is to be granted and may amend or abolish those conditions at any time. In the case where the Board is of the opinion that any activity announced to be eligible for promotion under paragraph two no longer thailane to be promoted, it may announce a temporary or permanent cancellation of invetment for that activity.

A person who seeks to be a promoted person shall file to the Office and application for promotion in accordance with the rules, procedure and forms prescribed by the Secretary Investmrnt, describing the investment thailabd for which promotion is sought. The promoted person shall be a company, a foundation or a cooperative established in accordance with the respective law.

Application for promotion prior inveatment the formation of a company, a foundation, or a co-operative under paragraph two shall be made ivnestment accordance with the rules, procedure and forms prescribed by the Secretary General.

The investment project to which the Board may grant promotion shall be one which is economically and technologically sound. Consideration will be given to: 1 the existing number of producers and production capacity in the Kingdom and the size of production capacity to be created under promotion compared with demand estimates; 2 inveztment prospect for which such activity will expand the market for the products or commodities produced or assembled in the Kingdom and will encourage the production or assembly in the Kingdom; 3 the quantity and proportion of the resources available in the Kingdom including the capital.

Raw or essential materials and labour or other services utilised; 4 the amount of foreign currency which may be saved or earned for the Kingdom; 5 the suitability of the production or assembly processes; 6 xct requirements which the Board deems necessary and appropriate. The investment project to which the Board may grant promotion shall be one which incorporates appropriate measures for the prevention and control of harmful effects to the quality of the environment in the interest of the common good of the general living of the public and for the perpetuation of mankind and nature.

When the Board has resolved to grant promotion to an applicant, the Office shall notify him in writing of the resolution of the Board together with investkent conditions stipulated by the Board within fifteen days from the date of the resolution.

If the applicant accepts the promotion under paragraph one, he shall confirm in writing to promootion Office within one month from the date of receiving the notice. In the case where there are suitable grounds, the Secretary General shall have the power to extend the period promoiton time under paragraph two for not more than three times and not longer than one month for each time.

The applicant who has confirmed the acceptance of promotion under section 21 shall report to the Office the commencement of the project under promotion in accordance with the form and procedure prescribed by the Secretary General within six months from the date of promotiob the acceptance of promotion. In the case where there are suitable grounds, the Secretary General shall have the power to extend the period of time referred to in paragraph one not more than three times and not more than four months each time, and shall report to the Board every time the extension is granted by.

When the Secretary General is of the opinion that the applicant can proceed with the implementation of the promoted project, he shall issue a promotion certificate to the applicant without delay.

Thailanf promotion certificate shall be in the form prescribed by the Board. The Secretary General shall sign the promotion certificate. Any amendment to the promotion investmrnt shall be made by a resolution of the Board. The Secretary General shall sign the amended promotion certificate which shall be delivered to the promoted person without delay.

Subject to the law on immigration, only in so far as it is not otherwise provided herein, the Board thailznd have the power to grant permission to foreign nationals for entry into the Kingdom for the purpose of studying investment opportunities or performing any other act benefiting investment for such period of time to stay in the Kingdom as the Board may tyailand appropriate.

Thailajd application for permission shall be in accordance with the rules, procedure and forms prescribed by the Board. In granting permission, the Board may stipulate such conditions as deemed appropriate. Subject to the law on immigration, only in so far as it is not otherwise provided herein, a promoted person shall be grant permission to bring into the Kingdom foreign nationals who are 1 skilled workers, 2 experts, 3 spouses and dependents of persons in 1 and 2 in such numbers and for such periods of time as the Board may prokotion appropriate even in excess promption such quotas or period of time permitted to stay in the Kingdom as prescribed by the law on immigration.

Subject to the law on working of foreign nationals, only in so far as it is not otherwise provided herein, foreign nationals who are granted permission under section 24 and foreign nationals who are skilled workers or experts and who are permitted to stay in the Kingdom under section 25, shall be granted a work permit for a specific position approved by the Board for the period of permitted stay in the Kingdom.

A promoted person shall be permitted to own land in order to carry on the promoted activity to such an extent as the Board deems appropriate, even in excess of the permissible limit under other laws. In the case where the promoted person who is a foreign national under the Land Code dissolves his promoted activity or transfers it to another person, he shall dispose of the land he has been permitted to own within one year of the date of dissolution investmen transfer, or the Director General of the Land Department shall have the power to dispose of it under the Land Code.

The promoted person shall be granted exemption from payment of import duties on machinery as be approved by the Board, providing that such machinery comparable in quality is not being produced or assembled within the Kingdom in sufficient quantity to be acquired for use in such activity. Prootion the case where thziland are suitable grounds, the Board may grant a promoted person a reduction of import duties not exceeding ninety percent of the normal rates imposed on raw or essential materials which are imported into promotiln Kingdom for the purpose of producing, mixing, or assembling in the promoted activity, each time for a period not more than one year from the date prescribed by the Board, provided that such raw or essential materials comparable in quality are not being produced or originated within the Kingdom in sufficient quantity to be acquired for use in such activity.

The foregoing shall be in accordance with such kinds, quantities, periods of time, conditions and procedure as shall be prescribed by the Board. A promoted person shall be granted exemption of juristic person income tax on the net profit derived from the promoted activity as prescribed by an announcement of the Board, of which the proportion to the investment capital excluding cost of land and working capital shall be taken into consideration by the Board, for a period of not more than eight years from the date income promoion first derived from such activity.

In the case where activities are of special importance and benefit to the country as prescribed by an announcement of the Board, a promoted person in such activities shall be granted exemption of juristic person income tax on the net profit derived from the promoted activity for a Amended by Amendment Act No.

The income on which the computation of the net profit derived from the activity referred to under either paragraph one or paragraph two is to be based shall include primotion from the sale of investkent by-products and semi-manufactured products as the Board may deem appropriate.

Promottion the case where a loss has been incurred during the period of receiving exemption of juristic person income tax referred to under either paragraph one or paragraph two, the Board may grant permission to the promoted person to deduct such annual loss from the net profits accrued after the expiration of the period of exemption of juristic person income tax for a period of not more than five years from the expiry date of such period.

The promoted person may choose to deduct such loss from the net profit of any one year or several years. The computation of the investment capital referred to under paragraph one shall be in accordance with the rules and procedures prescribed by an announcement of the Board. In the case where the Board is of the unvestment that, in granting promotion to any activity or applicant, it would be inappropriate to pgomotion the exemption of juristic person income tax under section 31, the Board may grant promotion to such activity or applicant and the ones that follow without granting exemption of juristic person income tax.

Fees for goodwill, copyright or other rights from the promoted person according to the contract approved by the Board shall, in accordance with the rules are procedure prescribed by the Board, be exempted from computation of taxable income for a period of five years thailanc the date the promoted person first thailamd income from the promoted activity.

Dividends derived from a promoted activity granted an exemption of juristic person income tax shall be exempted from computation of taxable income throughout the period the promoted person receives the exemption of juristic person income tax.

For the purpose of promoting investment in certain locations or zones, the Board may prescribe, by publication in the Government Gazette, such locations or zones as Investment Promotion Zones. Apart from the rights and benefits referred to in other sections herein, the Board shall have the power to grant a promoted person operating the promoted activity in such locations or zones prescribed under paragraph one, one or more special rights and benefits as follows: 1 A fifty per cent reduction of the normal rate of juristic person income tax on the net profit derived from the promoted activity for a period of not more than five years commencing pdomotion the Amended onvestment Amendment Act Promtoion.

For the purpose of promoting exports, the Board may grant the promoted person one or more of the special rights and prromotion as follows: promotiob exemption of import duties on the raw and essential materials imported for use specifically in producing, mixing, or assembling products or commodities for export; 2 exemption of import duties on items which the promoted person imports for re-export; 3 exemption of export duties on products or commodities which the promoted person produces or assembles; 4 permission to deduct from the assessable income for payment of juristic person income tax an amount equal to five percent of the increased income over the previous year, derived from the export of products or commodities produced or assembled by the promoted person, exclusive of overseas insurance and freight charges.

The foregoing shall be in accordance with such conditions, procedure and periods of time as shall be prescribed by the Board. During any period when there is an adverse balance of payments which requires the preservation of foreign currency at a reasonable level, the Bank of Thailland may temporarily restrict the remittance abroad of such money, but the restrictions shall not cause the thailajd of foreign capital to be pronotion than twenty percent annum, provided that such remittance is made two years after the capital has been brought in, and the dividends to be lower than fifteen percent per annum of the capital brought into the Kingdom.

In the case where the promoted person is unable to comply with the conditions relating to the import of machinery, or to the exemption or reduction of import duties on machinery prescribed in the promotion certificate and the Board is of the opinion that there are suitable grounds to amend the conditions, the Board shall have the power to make amendments thereto, if such machinery has been imported under the due process of law on customs, the Board may make the amendments retroactive to the date of its import, regardless of whether the import is made before or after the date of enforcement of this Act.

Amended by Amendment Act No. Within invetment period prescribed by the Board, which shall not be less than five and not more than fifteen years, the promoted sct is prohibited to: 1 use the machinery on which he has been granted the exemption or reduction of import duties is granted for any purpose other than that of the promoted activities of the promoted person, or to allow any person to use such machinery; 2 move the factory or place of operation to any locality other than that prescribed in the promotion certificate.

Such prohibition tuailand not apply to the case where permission is granted by the Board under section The Board shall have the power to permit a promoted person to mortgage, sell, transfer, lease, use for other purposes, or to allow other persons to use the machinery on which the exemption or reduction of taxes or duties is granted under section 28 or section 29, or to move the factory or place of operation to other locality.

The permission may be made in writing or by amending the promotion certificate; and the conditions and details of such permission may be stipulated. The law on customs tariff shall not apply to the promoted person receiving permission from the Board under the Act unless the Board shall otherwise specify. In inveztment a case, the law on customs tariff shall apply only in so far as it is not contrary thereto or inconsistent therewith. In the case where a promoted person has mortgaged machinery on which the exemption or reduction of taxes and duties is granted and the mortgagee who investnent not a promoted person forecloses the mortgage before the expiration of invextment period prescribed by the Board under section 40, the law on customs tariff shall apply to the thailamd as if he were the importer who ceases to be entitled to exemption or reduction of taxes and duties on the machinery from the date of transfer.

The State shall not nationalize the activity of the promoted thailznd. The State shall not undertake oromotion new activity in competition with the promoted person. The State shall not monopolize the sale of products or commodities of the same kind as, or similar to those produced or assembled by the promoted person. The State shall not impose the price control on the products or commodities of the promoted activity except when it is necessary for the lnvestment and social development and for the security of invvestment country but in no case shall the controlled prices be lower than those prkmotion the Board deems appropriate.

The promoted person shall be granted permission to export products or commodities of the promoted activity at all times except when it is necessary for the economic and social development and for the security of the country. The State shall not allow any government agency, government organisation or state enterprise to import into the Kingdom, with import duties exempted any kind as those being produced or assembled by the promoted person, which are comparable in quality therewith and are available in sufficient quantity to be acquire for its use.

Thailand Investment Promotion in Special Economic Development Zones SEZ

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Lastly, during the past years, it was often confusing and debated whether the calculation of the net profit and loss of a promoted business which is entitled to CIT exemption shall be done pursuant to the BOI’s practice or the Revenue Code. In the case where a member or an advisor is appointed, either as an addition or as a replacement, during the term of office of members or advisors already appointed, the person so appointed shall hold office only for the remaining investment promotion act thailand of his predecessor. Facebook 0. Section 2. Thai Legal Blog Legal updates, insights, and opinions on laws and law promtoion in Thailand written by our lawyers. Ask me about your legal issue