Thailand BOI clarifies policy on new foreign investment promotion scheme

BANGKOK - Thailand's Board of Investment (BOI) has clarified rules applying under its new investment promotion scheme, which came into effect on January 1. The main business concern has been how the BOI would treat expansions of projects approved under the BOI's previous investment promotion scheme. - which set of incentives and privileges would apply?

At a seminar attended in Bangkok by hundreds of foreign investors in Thailand, BOI Deputy Secretary-General, Duangjai Asawachintachit, said the main point of consideration will be whether the product or service in question is still eligible for BOI promotion under the new policy.
 
If 'No', the entity can request project modification and capacity can be increased by up to 30%, with existing policy incentives and privileges remaining unchanged. If 'Yes', the next point of consideration is: Have the incentives changed?
 
In cases where the entity is still eligible for BOI promotion, but entitled to different tax incentives, the promoted entity has two options - (1) to apply for a new project under the new policy; or (2) Apply for project modification under the previous policy (however, only an expansion in capacity up to 30% will be provided incentives).
 
Further information from Ben.Yong@bakermckenzie.com or Ben.Yong@bakermckenzie.com  (ATI).