Thailand BOI: Promoted Activities: Light Industries

January 11 2012 Categories: Thailand BOI, Thailand Business No comments yet

What are the light industries activities eligible for promotion under section 3 of the BOI list?

Reminder: As you already know the Board of Investment is the agency in charge of promoting certain sectors of Thai economy. As such the BOI role is among other to determine:

What are the activities which are eligible for promotion

What are the conditions attached to said promotion

What are the privileges attached to said business activity

The activities that are promoted are divided in seven sections as follows: Section 1: Agriculture and Agricultural Products; Section 2: Mining, Ceramics and Basic Metals; Section 3: Light Industry; Section 4: Metal Products, Machinery and Transport Equipment; Section 5: Electronic Industry and Electric Appliances; Section 6: Chemicals, Paper and Plastics; Section 7: Services and Public Utilities.

The table below is a list of the activities promoted by the BOI under Section 3:

List of activities eligible for promotion and their conditions
Section 3 Light Industry
Activities	Conditions and privileges
3.1 Manufacture of textile products or parts (19)	Conditions for the manufacture of fabrics Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap - Other rights and benefits are granted according to BOI Announcement No. 1/2543. - Appointed the conditions according to Announcement No. 6/2546
3.1.1 Manufacture of natural or synthetic Fibers
3.1.2 Yarn spinning
3.1.3 Manufacture of fabrics (20
3.1.4 Bleaching, dyeing and finishing(21)	Conditions for bleaching, dyeing and finishing Projects must be located in an industrial estate specified by the Industrial Estate Authority of Thailand or promoted industrial zones which have waste elimination systems and environmental conservation to legal standards. 1. If the project locates in an industrial estate specified by the Industrial Estate Authority of Thailand or an intensive industrial estates, Privileges will be granted as follows; - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone - Other rights and benefits are granted according to BOI Announcement No. 1/2543. 2. If the project locates in an industrial estate or a promoted industrial estate which has a waste elimination system and environmental conservation up to legal standards, privileges will granted according to BOI Announcement No. 1/2543.
3.1.5 Printing and finishing
3.1.6 Manufacture of garments (22)	Conditions for the manufacture of garments Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap - Other rights and benefits are granted according to BOI Announcement No. 1/2543. - Appointed the conditions according to Announcement No. 6/2546
3.1.7 Parts or accessories for garments
3.1.8 Manufacture of household textiles
3.1.9 Manufacture of carpets
3.2 Production related to the gem and jewelry industry(23)	1. Projects located inside a promoted gem and jewelry industrial estate or zone: - Exempt from import duty on machinery, regardless of zone- If located in Zone 1,corporate income tax exemption for five years - If located in Zone 2, corporate income tax exemption for seven years. - If located in Zone 3, corporate income tax exemption for eight years. - Other privileges will be granted according to Board of Investment Announcement No. 1/2543. 2. Projects located outside a promoted gem and jewelry industrial estate or zone receive privilegesset forth in BOI announcement No. 1/2543
3.3 Manufacture of products from leather or artificial leather	-
3.4 Manufacture of shoes or parts	-
3.5 Manufacture of sports equipment or parts	-
3.6 Manufacture of toys (24)	Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap. - Other rights and benefits are granted according to BOI Announcement No. 1/2543. - Appointed the conditions according to Announcement No. 6/2546.
3.8 Manufacture of lenses or spectacles or parts	-
3.9 Manufacture of medical supplies or medical equipment (27)	Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone with unspecified ratio of corporate income tax
3.10 Manufacture of stationery or parts (28)	Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap. - Other rights and benefits are granted according to BOI Announcement No. 1/2543. - Appointed the conditions according to Announcement No. 6/2546
3.11 Manufacture of furniture or parts (29)	Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap. - Other rights and benefits are granted according to BOI Announcement No. 1/2543. - Appointed the conditions according to Announcement No. 6/2546
3.15 Manufacture of trawling nets	-
3.16 Manufacture of abrasive paper	-
(19) Please see Board of Investment Announcement No. 8/2547 dated September 17, 2004 (20) Please see Board of Investment Announcement No. 6/2546 dated October 16, 2003 (21) Please see Board of Investment Announcement No. 5/2550 dated September 14, 2007 (22) Please see Board of Investment Announcement No. 6/2546 dated October 16, 2003 (23) Please see Board of Investment Announcement No. 5/2546 dated October 16, 2003 (24) (25) (26) Please see Board of Investment Announcement No. 6/2546 dated October 16, 2003 (27) Please see Board of Investment Announcement No. 2/2549 dated March 20, 2006 (28) (29) Please see Board of Investment Announcement No. 6/2546 dated October 16, 2003 (30) Please see Board of Investment Announcement No. 2/2549 dated March 20, 2006 SOURCES: http://www.boi.go.th/english/about/section3.pdf

Note: While we are exercising our best endeavors to maintain on this blog only updated information BOI elegible activities is a work in progress. Therefore always double check the information above with the list of the BOI

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

Originally posted 2009-08-03 07:10:22.

Doing Business in Thailand