"We provide our service to various clients including the local small and medium enterprises and small foreign entities."


Location
        Set in the midst of one of the most exotic destinations in the world, Phuket International Accounting Auditing and Business Consulting Firm offers you the opportunity to own your dream business on the paradise island of Phuket, the pearl of the Andaman Sea in Southern Thailand.

Located close to Patong beach and offering seclusion and tranquility,Phuket International Accounting Auditing and Business Consulting Firm is nonetheless conveniently situated
less than a 30 minute drive from Phuket International Airport, Phuket town and is even closer to Patong with its bustling shops and variety of entertainment.

Address:
        51/112 Prabaramee Rd., Kathu Phuket 83120. Tel : 076-323909-11 Fax :
076-323912

INVESTMENT PROMOTION CRITERIA OF THE THAI GOVERNMENT
        The Investment Promotion Act B.E. 2520 (1977) as amended by the Investment Promotion Act (No. 2) B.E. 2534 (1991) has prescribed the privileges of a promoted business as follows:

1. Guarantees by the Thai Government

- Against nationalization
- Against competition from new state enterprises
- Against state monopolization of the sale of products similar to those produced by the promoted project
- Against price controls
- Against tax-exempt imports by government agencies or state enterprises
- Permission to export

2. Protection Measures (Subject to Justifications and Needs)

- Imposition of a surcharge on imports at a rate not exceeding 50 percent of the CIF value for a period not more than one year at a time
- Import ban on competitive products
- Authority by the Chairman to order helpful actions or tax relief measures for the benefit of promoted projects

3. Permissions

- To bring in foreign nationals to undertake investment feasibility studies
- To bring in foreign technicians and experts to work on promoted projects
- To own land to carry out promoted activities
- To take or remit foreign currency abroad
4. Tax Incentives


- Exemption or reduction of import duties on imported machinery
- Exemption or reduction of import duties on imported materials and components
- Exemption of corporate income taxes for three to eight years, with permission to carry forward losses and deduct them as expenses for up to five years
- Exclusion of dividends derived from promoted enterprises from taxable income during the corporate income tax holiday

5. Additional Incentives for Enterprises in the Special Investment Promotion Zones

- Reduction of corporate income tax by 50 percent for five years after the exemption period
- Double deduction from taxable income of water, electricity, and transport costs for 10 years from the date of first sales
- Deduction, from net profit, of 25 percent of the project's infrastructure installation or construction cost

6. Additional Incentives for Export Enterprises

- Exemption of import duties on imported raw materials and components
- Exemption of import duties on re-exported items
- Exemption of export duties
- Allowance to deduct from taxable corporate income an amount equivalent to five percent of an increase in income derived from exports over the previous year, excluding the cost of insurance and transportation

        Policies and Criteria for Investment Promotion (Including Criteria for Factory Relocation and Criteria for Research and Development) This Board of Investment Announcement No. 1/2536 (April 9) supersedes BOI Announcement No. 1/2535, and should be read in conjunction with BOI Announcement No. 2/2536, the List of Activities Eligible for Investment Promotion.
These criteria are effective for applications submitted from April 1, 1993. Projects that have already been approved for investment promotion, but have not yet used their tax privileges as of April 1, 1993, are eligible to apply for additional privileges under sections six and of this announcement.

         In line with the National Economic and Social Development Plan and government policies, the BOI has updated the policies and criteria for granting investment promotion and providing tax incentives as follows:

1. Legal Aspects Under the Investment Promotion Act of B.E. 2520, the Board of Investment may approve the promotion of investment projects in the agriculture, animal husbandry, fishery, mineral exploration and mining, manufacturing, and service sectors when it considers that the products, commodities or services:

- Are either unavailable or insufficiently available in Thailand, or are produced by an out-dated process
- Are important and beneficial to the country's economic and social development, and to national security, or
- Are economically and technologically appropriate, and have adequate preventive measures against damage to the environment.

2. Policy Aspects Under the Investment Promotion Act of B.E. 2520, the Board of Investment maintains a policy of giving special consideration to investment projects that:

- Locate operations in provincial areas
- Establish or develop industries that form the base for further of industrial development
- Develop public utilities and basic infrastructure
- Conserve natural resources and help reduce environmental problems
- Conserve energy or replace imported energy supplies
- Contribute to technological development
- Significantly strengthen the country's balance of payments.

3. Criteria for Project Approval In determining both the economic and technological suitability of a project for which investment promotion is requested, the Board applies different criteria depending on the level of investment capital.

- For a project with investment capital (excluding the cost of land and working capital) not exceeding 200 million baht, the following criteria are used:

- The value added is not less than 20 percent of sales revenue, except projects which export at least 80 percent of total sales, or use domestic agricultural products as raw materials, or involve conserving, restoring or developing natural resources and the environment.
- Registered capital of a newly established project amounts to at least 20 percent of total investment. For expansion projects, the proportion of registered capital to total investment is considered on a case by case basis.
- Modern machinery and production processes and new equipment are used. In cases where an older process is to be used, its efficiency must be certified by a reliable institution, and the Board must approve installation.
- Adequate environmental protection systems are installed.

- For a project with investment capital (excluding the cost of land and working capital) over 200 million baht, criteria for projects with capital under 200 million baht (as above) are used, together with the following additional considerations:

- The impact of the project on its own industry and related industries
- The impact on government revenue and any additional burden on the government, in relation to the project
- The effect on consumers
- The contribution to technological development.

- For a project with investment capital (excluding the cost of land and working capital) over 500 million baht, a feasibility study must be submitted.

 

BOARD OF INVESTMENT REVISED THAILAND INVESTMENT POLICY
        In the meeting held on Wednesday, May 31, 2000 chaired by the Prime Minister Chuan Leekpai. The Board of Investment declared the revision of Thailand investment policy to be in full force and effect on Tuesday, August 1, 2000. All the requests filed upto such date shall be entitled for BOI current privileges.
        As a part of normal business operation, BOI is revising the validity and properness of privileges in a continuing manner. To assure that policy revision meets the investors and government needs; to undertake swift change of economical environment policy and to lessen tax privilege of financial system, BOI has made policy revision as follows:

1. To generate the nation maximum benefit within good regulatory policy, BOI made the move to improve the efficiency of privileges granting by the introduction of system based on performance standard which required to support the investors who filed the evidence meeting the approval conditions to claim for benefits from such privileges.

2. To raise Thailand export competitive competency of investment project worth less than Baht 10 million worldwide, international standard certificate such as ISO 9000 must be obtained.

3. To assure that Thailand investment promotion policy is inline with the national overall debts obligation, BOI has upgraded major contents relating to local subject matters and requirements of all exports.

4. To back up opportunity distribution to less developed provinces, BOI power decentralization from the central part shall further be proceeded. Projects located in such provinces shall be granted highest privileges.

5. To support medium and small business development, the amount of minimum investment shall still remain at Baht 1 million included land cost and business operation cost.

6. To promote investment in different in main sectors by identifying 5 top priority activities (agriculture and agricultural products, environmental prevention and/or rehabilitation, relativeness to direct technology and human resource development, transportation, basic infrastructure and service as well as targeted industry).
Existed policy revision included:


- Project in the production sector, overall or major foreign ownership permitted in any zones.

- Maintaining maximum approved debt: capital ratio which shall be reduced from 4:1 to 3:1.

- For project worth less than Baht 500 million, incremental portion value must be at least 30 per cent of total sale revenue except power supply and agricultural industry project.

- For project worth over Baht 500 million, at the time of filing the application, project feasibility report must also be submitted.

- However, BOI shall support project site change in zone 2 and 3 to create the right for new privilege, project which site change is made, must move into the industrial estate.

- Due to the need to raise development level, Phuket and Rayong are moved into investment promotion zone 2 which 3 years income tax exemption is given for promotion granted project except the project located in industrial estate zone, which in the latter case, 5 years income tax exemption is given.

- Projects which located in industrial estate zone 2 which approval was granted by BOI prior this policy applicable date and 7 years income tax exemption is given, must be the project which application to be filed prior December 30, 2004. After the date such income tax exemption is given as to new policy declaration guidance, shall be subject to only 6 years income tax exemption.

- 58 provinces attached to zone 3 shall be divided into 2 areas based on development level of each province. New projects located in zone 3 shall have no right for reduction of 70% raw material import duty to be used for local sale. / Provinces with much development (40)

- Industrial estate inside the zone - For the projects which applications to be filed prior December 2004 which located in the industrial estate zone granted investment promotion by BOI prior the applicable of this new policy, such principle has not been changed. For the existed privilege principle the project which the application to be filed after December 30, 2004 shall have no right for the reduction of project infrastructure cost from 25 per cent of net profit any further.

- Industrial estate located outside - New project shall be given 8 years income tax exemption with no additional income tax reduction and no reduction of project infrastructure cost from 25 per cent of net profit. / Less developed provinces (18)

- For new projects in the following provinces (Si Sa Ket, Nongbualumpoo, Surin, Yasothon, Maha Sarakham, Nakhon Phanom, Roi Et, Kalasin, Sakon Nakhon, Buri Ram, Amnart Charoen, Phrae, Phayao, Nan, Satun, Pattani, Yala and Narathiwat) there shall be no change from privilege principle for zone 3 available at present).

In the meeting, BOI further declared that short-term measure priority which time extension is made upto June 30, 2000, extension shall be made for 1 more month (upto July 31, 2000)

Issue & Answer
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