Legislation for Foreign Investments in Thailand
Updated on Friday 05th August 2016
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Foreign investment plays an important role in Thailand’s economy, with the Board of Investment (BOI) granting certain incentives and tax reductions for foreign entrepreneurs in the country. The legislation for foreign investments in Thailand is generally represented by The Foreign Business Act, the Alien Employment Act and the Investment Promotion Act. Other issues related to foreign investments in Thailand are regulated by other different rules and regulations, like for example the immigration law, the import and export regulations and others. Our lawyers in Thailand can offer the relevant details on the foreign investment legislation in the country.
Foreign direct investments in Thailand
Thailand is a significant foreign direct investment (FDI) center. It confers an attractive and contemporary legal framework and its economy is dynamic in all its regions.
According to the World Investment Report 2015 of the UNCTAD (United Nations Conference on Trade and Development), Thailand has an FDI of USD 12.6 billion, ranking the 5th largest FDI receivers in East and Southeast Asia. In the second half of 2014, the number of FDI projects increased with 73%, with an increase of 117% in value, compared to the previous year, following the establishment of political stability and in expectancy of the new investment policy.
This year, the new seven-year strategy for investment stimulation is projected to increase even more the FDI in Thailand. A Thailand lawyer can give you more details on this investment strategy.
Advantages offered by the BOI of Thailand
The BOI of Thailand sets certain incentives in six industries for foreign investments, which consist of:
• Eight years of tax exemptions for businesses;
• 50% reduction on taxes for businesses for five years;
• Deductions on double transport, electricity (which can be a quite expensive commodity in Thailand) and re-supply;
• 25% deductions on net profits for establishment and construction expenses.
These six industries which receive the above mentioned incentives are:
• Food and agriculture;
• Electronics, information and communication technologies;
• High added value services, such as leisure, tourism and health.
• Renewable and alternative energies;
If you are interested in accessing the business market in Thailand, we invite you to contact our Thai lawyers who can offer you guidance for your business endeavors in Thailand.