‘BOI’ is an acronym for Thailand Board of Investment which is a government agency under the Office of the Prime Minister established in 1977 to provide incentives for both Thai and foreign companies to invest in business activities promoted by the agency.

The three principal aims of the BOI are the promotion of investment opportunities in Thailand and in foreign countries, the development and innovation of technology in Thailand, and increasing economic growth in Thailand.

In order for a company to be eligible under BOI it must meet a minimum capital investment amount, be registered under Thai law, and be active within one of eight business categories:

• Agriculture and agricultural products
   
• Light industry
   
• Services and public utilities
   
• Chemicals, paper and plastic
   
• Technology and innovation development
   
• Electronic industry and electric appliances
   
• Metal products, machinery and transport equipment
   
• Mining, ceramics and basic metals

Companies must also have a paid up registered capital of 10 million Baht and make a minimum investment of not less than 1 million Baht within 3 years for activities such as asset procurement, rental fees, office renovation, etc. (excluding the cost of land and working capital).

Incentives provided by the BOI can split into two main categories: tax and non-tax incentives. Tax incentives include exemptions and/or reductions in taxes for certain amounts of time, depending on the prospective applicant’s business activities. Non-tax incentives comprise privileges that are not normally afforded to foreign investors, including full foreign ownership of a corporate entity and permission to own land in Thailand.

An example of a foreign-owned BOI business in operation in Thailand is Nordic Tropical Resort located in Bang Sarey, near the coast in Chonburi Province. In 2007  Nordic Tropical Resort was granted promotional privileges for ‘the business of providing lodging services and a welfare centre for elderly people.’ Included in the privileges is permission to employ skilled foreign nationals and allow their dependants to stay in Thailand, permission to own land, a reduction of 50% on import duties of machinery required by the business, and the unrestricted transfer in or out of Thailand of foreign currency.

As a consequence of these BOI privileges, Nordic Tropical Resort has ownership of 82 Rai (13 Hectares) of land and has developed 59 leasehold villas and 36 leasehold condominiums on 56 Rai (9 Hectares) with plans for up to 400 additional units on the remaining undeveloped land of 26 Rai (4 Hectares). The business is currently up for sale by its Scandinavian owners and further information is available upon request.