New Incentive Plan of BOI Thailand for Investors

 

The Board of Investment (BOI) Thailand is a pinnacle organization in the kingdom supporting and uplifting investors, be they, Thai or foreigners. In this process, the BOI comes up with new policies, investment opportunities, and amendments that can benefit existing businesses. In the stretch of continuity of this investor-friendly journey, New Incentive Plan is announced by BOI Thailand for Investors.

The Thailand Board of Investment (BOI) recently announced new incentive packages. This is a follow-up to its new five-year strategy, which was unveiled last month. These incentive packages include the following:

• A set of special privileges to support expansion by long-standing investors
• A comprehensive relocation program covering headquarters and research & manufacturing facilities, and
• Package for investment in sustainable activities like the production of hydrogen vehicles and the development of biofuels.

This article intends to explain all through the new plan so that it becomes easy for you to focus on your new business plan in Thailand.

• The Announcement
  • Retention & Expansion Program
  • Relocation Program
  • Creation of New Industry Categories
  • Advanced Technology Sectors
  • New Economic Corridors
  • Ease of Doing Business
• The Bottomline

The Announcement

The BOI board met on November 04, 2022, to approve the measures. The measures include premium incentives for high-tech and innovative industries. Primary industries of focus are biotech, nanotech, and advanced materials. The new announcement support measures for the development of novel foods. Additionally, the creation of new economic corridors or SEZs in four regions of Thailand is something that it focused on. The new policies cover the implementation of a unique mechanism to enhance the ease the doing business in Thailand.

According to the BOI’s Secretary General, Mr. Narit Therdsteerasukdi, the strategy aims to upgrade the industrial capacity with a focus on high technology and innovation. Additionally, it aims to build the industrial base of the future. Nevertheless, this is to make Thailand the center of international business and the technology hub of the region.

BOI wants to emphasize Thailand’s capabilities to help address some concerns like food security. It also aims to explore renewable energy sources and enhance supply chain operations.

The 2023–2027 Investment Promotion Strategy, aims to assist in Thailand’s economic restructuring. Additionally, it is also to ensure that the nation is progressive, competitive, and open to all after Covid–19. To present Thailand as a regional hub for commerce, trade, and logistics, the plan aims to promote technological advancement. Additionally, it supports the transition to green and smart industries, talent development, as well as creativity, and innovation. The bio-circular-green (BCG) sector, the EV supply chain, electronics manufacturing, the digital economy, and creative industries are the other five important areas in the strategy as priority industries.

According to the special packages released on November 04, 2022, the following are specifics of the approved measures and additional benefits for investors.

Retention & Expansion Program

With approval for a new project or expansion project with an investment of 500 million baht or more, long-standing investors or businesses over the previous 15 years have been granted investment benefits for at least three projects totaling at least 10 billion baht (roughly 265 million US dollars)—will be given special incentives, such as an additional corporate income tax (CIT) exemption for up to three years or a 50% CIT reduction. This is the first time the BOI has offered a package to thank investors who have shown faith in Thailand and actively contributed to the long-term industrial growth of our nation, according to Mr. Narit.

Relocation Program

Companies moving all of their operations, including their regional headquarters, research and development (R&D) centers, and manufacturing facilities to Thailand will be eligible for an additional CIT exemption for 5 years under the relocation program. However, according to the industry, businesses moving their manufacturing and regional headquarters will earn an additional 3 years of CIT exemption, whereas businesses moving their manufacturing and R&D center will receive an additional 1 to 5 years of CIT exemption. Only revenue from the manufacturing activities that have been relocated is eligible for any CIT exemptions.

Creation of New Industry Categories

The board approved the formation of new supported industry sectors, particularly sustainable activities, that would receive specific incentives in order to hasten the transition to the new economy. Note that, the creation of electric vehicle (EV) battery switching stations, the production of hydrogen vehicles, novel foods, organic foods, etc. are some of the new categories. In terms of renewable energy, the newly promoted businesses kinds include those that produce hydrogen and its related products, such as green ammonia, as well as those that produce power and steam using hydrogen.

Advanced Technology Sectors

Investments in upstream high-tech industries including biotech, nanotech, and advanced materials that involve technology transfer and collaboration with Thailand’s higher education institutions and research organizations will receive premium incentives. According to the BOI’s nomenclature, these projects, which are categorized as “A1+,” will be eligible for 10 to 13 years of CIT exemption without a cap, depending on the activity. Wafer fabrication has been moved up to this category and will now qualify for a 13-year CIT exemption, as opposed to the prior 10-year exemption.

New Economic Corridors

The board also approved the designation of four areas of Thailand, totaling 16 provinces, as special investment zones for new economic corridors. Numerous incentives are offered for investments in these sectors. The four regions, which are the Northern Economic Corridor, North-Eastern Economic Corridor, Central-Western Economic Corridor, and Southern Economic Corridor, will expand the current Eastern Economic Corridor, a region of industrial and high-tech development.

Ease of Doing Business

The board also approved the creation of a Sub-Committee on the Resolution of Obstacles and Facilitation of Investment, which will act as a special mechanism to further increase the ease of doing business by addressing particular pain points raised by investors. This committee will work in conjunction with the Prime Minister’s Office and other state agencies.

Beginning in January 2023, the new incentives will be in place.

The Bottomline

If you have planned to start your business in Thailand, go for the BOI advantages. If you are a foreign investor, you can easily get the following privileges and benefits:

1. Permission for foreign investors to own land
2. Permission to operate under 100% foreign ownership
3. Exemption from work permit and visa rules
4. Exemption of import duty on machinery
5. Corporate income tax exemption for up to 8 years
6. Deduction of Transportation, Electricity, and Water Costs
7. Deduction of the Project’s Infrastructure Installation
8. Exemption of import duty on raw or essential materials used in the manufacturing of export products for 5 years
9. Permission for foreign technicians, experts, and their spouses or dependents to work and stay in Thailand

There are various legal, documental, and financial requirements to get BOI approval for your business in Thailand. But the thing that is more pristinely necessary is local legal support. It won’t be possible for a foreigner to move around and meet and communicate with authorities, where language is a great barrier. 

Although English is the official business language in Thailand, yet, all people here may not be comfortable with that. Additionally, you need to have local guidance on legal and taxation requirements.

Therefore, so that your business idea gets noticed by the BOI and you get easy approval from there, let us help you. Email us your idea and requirements at officer@konradlegal.com and book your free round of consultation with our team of experts. So, reach out to us today to avail all the benefits that BOI Thailand has for investors.

How to Get a Company Registration Certificate in Thailand?

 

Your legal right to conduct business in Thailand is confirmed by your Company Registration Certificate in Thailand. However, you qualify to receive a certificate in Thailand following successful registration. There is a significant growth in the volume of Thai business registrations due to the country’s expanding economy and advantageous geographic location. Moreover, due to government’s support and incentives, foreign businessmen and investors prefer this country. Additionally, Thailand is at an excellent location in Asia, has effective policies, and enjoys social and political stability.

You must complete the registration process wherever you choose to start a business. And, Thailand is no exception. The main objective is constant – submitting the required paperwork, going through the process, and registering. Moreover, Thailand does not charge a very high registration fee for businesses. With the right advice and consulting, you can quickly register your business. Once registered, you are eligible for the services the Thai government offers to businesses.

Why You Will Need Company Registration Certificate in Thailand?

If your company is operating in Thailand, the public must be able to reach you. Therefore, you must let everyone know that you are operating legally in Thailand. Your legal registration to conduct business in Thailand will be attested to by the certificate. Additionally, your Company Registration Certificate will be the only acceptable proof of the following details of your company in Thailand:

1. Date of registration of your company in Thailand
2. Company name and address
3. Company registration number
4. Type of business your company can conduct in Thailand

Furthermore, your Company Registration Certificate in Thailand, as stated earlier, is the most vital evidence of the existence of your business in the kingdom. Additionally, you will need this certificate to apply for the following documents and processes for your business:

1. VAT Registration Certificate
2. ISO Certification
3. Foreign Business License for a Representative or Branch Office
4. Corporate Income Tax Registration
5. Opening a Corporate Bank Account

Now hopefully, you can understand the importance of Company Registration Certificate in Thailand. It is all you need to reinforce your new business in Thailand with all types of documentation and licensing.

How to Get a Company Registration Certificate in Thailand?

The only method to get a Company Registration Certificate in Thailand is to proceed for company registration in Thailand. You will have to register your business in Thailand in accordance with the Foreign Business Act, if you are a foreigner. Let us briefly explain to you the process of Company Registration in Thailand.

You have to follow the nation-specific procedures if you want to start a business in your home country or any other foreign country. It differs everywhere. However, there are some nations where the procedure is the same. The most important details to be aware of are generally as follows:

• Preparing company name  
• Finding out if the name is available  
• Collect all relevant documents  
• Fill up form in designated offices  
• Submit all the forms and documents to the designated offices 

After you are through all the mentioned steps, you will be able to operate in Thailand. Henceforth, it is now that you will get your Company Registration Certificate in Thailand. The certificate will hold your business registration number through which the government will monitor your company. 

In due course of your business operation in Thailand, if you ever have to change your company’s name and/or address, you will have to visit the Department of Business Development for this. Henceforth, they will verify the authenticity of the reason for the change you are requesting for. Furthermore, they certify the change. However, you must ensure that your Company Registration Certificate gets updated with the new name and/or address.

Process of Company Registration in Thailand

Get the comprehensive guide for Company Registration in Thailand by clicking this line. However, we are briefing you with the process as well.

In Thailand, as a foreigner, you are legally permitted to have a company of the following structures:

• A Private or Public Limited Company 
• A Partnership / Limited Thai Partnership 
• Thai Representative Office or Branch Office

Although there are some technical differences in setting up the companies in the said structures, yet the basic requirements are the same. Therefore, you will have to go through the following steps to register any type of business structure in Thailand:

• Company name search  
• Registration of the company name  
• Prepare and submission of Memorandum of Association  
• Prepare and submission of Article of Association  
• Fixing a Statutory Meeting  
• Submission of necessary documents for company registration  
• Registering for VAT or Tax 

The Bottomline

The formation of a Thai Limited Company is the most advantageous and preferred option for starting a new foreign-owned company in Thailand. Primarily, this is due to the following vital reasons:

• There are policies to protect foreign investment
• Easy Process of Business Registration that can be accomplished in few days
• The process strongly supports foreign work permits.

A BOI Company is the second most common business setup for foreigners in Thailand. The Thai government actively promotes it and offers significant benefits, including tax privileges, 100% foreign ownership, land ownership, and many other things.

Therefore, to avail the benefits of the proactive and investor friendly policies of the Thai Board of Investment or the Department of Business Development, you must consult a Thai Business Consultant. Additionally, you can email us your business idea and requirements at officer@konradlegal.com.

How Can a Foreigner Start Franchise Business in Thailand?

Franchising is one of the easiest ways for foreigners to invest in a business. You won’t be the first person to open a franchise in Thailand because franchising is not a recent business model there. More than 12,000 franchisees and over 400 franchises are currently present in Thailand. Franchises have gained popularity, though, as a result of the AEC’s introduction because it has been much simpler, more profitable, and more effective to expand inside ASEAN. Thailand still lacks a franchise law, nevertheless.

• What is Franchise Business in Thailand?
• Regulations Governing Franchise Business in Thailand
• Obligations to follow to Start Franchise Business in Thailand
• Benefits for Foreigners to Start Franchise Business in Thailand
• This is What You Must Do!

What is Franchise Business in Thailand?

According to the 2019 notification, a franchise is a business transaction in which one party, called a franchisor, contracts with another party, called a franchisee can – 

• To use the franchisor’s s business method, model, system, procedures, and intellectual property rights (or any business method, intellectual rights, etc) that the franchisor has the right to license
• In a specific time and place
• Where the business operation is under the support and business plan of the franchisor
• The franchisee has an obligation to pay royalties to the franchisor

However, to assure the protection of both the franchisor and the franchisees, a contract must be neutral and benefit both parties. Moreover, the franchise agreement must strike a good balance between the interests of the two parties because they have various matters to take into account.

Therefore, call one of our attorneys if you wish to launch a franchise business in Thailand. Additionally, we provide other services and legal paperwork in addition to registering your business in Thailand promptly.

Regulations Governing Franchise Business in Thailand

First off, a franchisor/franchisee relationship is not subject to any notice or registration requirements under Thai law. Although the relationship between the franchisee and the franchisor is mostly contractual, nonetheless there are certain laws and rules governing them:

• The provisions of the Thai Civil and Commercial Code governing contracts
• The Unfair Contract Terms Act B.E.2540
• Intellectual property laws, in particular, the Trademark Act
• The Trade Secrets Act B.E.2545
• The law on consumer protection and “controlled contracts
• Laws governing the specific commercial activity that is the subject of the franchise, such as the Food Law or the Cosmetics Law
• The law on commercial competition

Additionally, the Notification Regarding the Guidelines for the Consideration of Unfair Trade Practices in Franchise Businesses was released on December 6, 2019, to stop franchisors from implementing excessively onerous and unfair contractual provisions that are thought to potentially hurt franchisees. The notice has been in effect since February 4, 2020.

Obligations for Franchise Business in Thailand

The franchisor is subject to two requirements in the announcement. Disclosure of crucial information about the franchise is mandatory. Therefore, the franchisor must provide the franchisee with material information before signing a franchise agreement, such as information about:

• The royalty and other payments for operating the franchised business
• The business model of the franchise
• Intellectual property rights
• Renewal and termination of the franchise agreement

The franchisor must first grant the franchisee the authority to operate the branch if the franchisor plans to open and run a new branch in the vicinity of the franchisee’s area of operation.

Therefore, we advise that franchisors implement their franchise systems carefully and abide by the notification requirements. Additionally, it is advisable to review the Commission’s rulings and the cases decided by the Thai Supreme Court that established a standard for “unfairness.”

However, the rules forbid the following franchise activities:

• Setting conditions on franchisees’ rights without valid business reasons
• Setting additional conditions after the execution of the contract without good cause
• Prohıbıtıng franchisees from purchasing products or services from manufacturers, distrıbutors, or other service providers without good cause
• Prohibit franchisees from selling perishable products at a discount without good reason
• Prohibit franchisees from selling discounted perishable products without good reason
• Not treatıng all franchisees equally by setting different terms for each franchisee
• Setting inappropriate contract terms for franchisees that are not related to maintaining the franchisor’s reputation, quality, and standards

Violation of the said rules can lead to an administrative fine of up to 10% of yearly sales. On this, the franchisee may file claims for violations under the terms of the franchise agreement with a one-year statute of limitations. Additionally, Section 60 of the Trade Competition Act provides the Commission extensive jurisdiction to prohibit an offender from operating any franchise businesses in Thailand.

Benefits for Foreigners in Franchise Business in Thailand

For an incomıng foreigner just arriving in the country, starting a franchise business in Thailand has many business advantages:

• New entrants are often unfamiliar with the Thai market
• They may not know the local supply chains, rental markets, and potential customers.
• Local franchisees are often more familiar with local supply chains, rental markets, and potential customers
• Spreading the risk

This type of business relationship also has interesting legal advantages:

• Foreigners will not have to deal with Thai restrictions on foreign entrants
• They are not subject to Thai legal restrictions on foreign parties: such as the Foreign Business Act, the Tourism Act, and other local laws, permits, and regulations. This is done by the franchisee, not the franchisor
• Their contract will be concluded under specific local laws such as Thai labor law

The Bottomline

There are regulations, acts, and laws in anything you do in any region of this world. Thailand is not an exception. The advantages that you can get by starting your franchisee business in Thailand are as follows:

• Get the opportunity to be part of the booming ASEAN market
• Tap the entire South-East Asian economy
• Be part of the rapidly growing digital economy of Thailand
• Get immense support from the Royal Thai Government & the Board of Investment, and,
• Have Konrad Legal by your side!

Reach out to us for all types of legal paperwork, legal, accounting, or regulatory guidance and assistance in your venture to start a franchise business in Thailand. Email us at officer@konradlegal.com.

Business Opportunities in Medical Industry in Thailand

 

The Thai government views the healthcare sector as a top priority for investment and continued growth in accordance with its Thailand 4.0 program. The Ministry of Public Health’s 2016–2025 Strategic Plan, “Thailand: A Hub of Wellness and Medical Services,” reaffirms this position. Therefore, this makes the medical industry to be very promising for foreign investors to do business in Thailand.

Other elements, such as a solid foundation of health-related sectors, rising demand for health services, and alluring investment incentives, among others, also play significant roles in strengthening Thailand’s position as the “Medical Hub of Asia.” While the government’s policies provide the strategic direction required for Thailand to strengthen its position as a regional medical hub, other elements also contribute significantly.

Thailand has developed into a medical center not only for ASEAN but also for Asia and beyond, with a strong healthcare infrastructure already in place and a global reputation for its highly skilled medical personnel and international standard medical services. Therefore, Thailand presents the ideal investment destination for a wide range of medical and healthcare service companies due to its favorable regulations from the government and the BOI.

What Makes Thailand Successful in the Healthcare Sector?

Aging Society of Thailand: Business Opportunity in Thailand

Leading Medical Tourism Hub in Asia: Business Opportunity in Thailand

Large Market for Medical Devices: Business Opportunity in Thailand

Growing Domestic Pharmaceutical Market: Business Opportunity in Thailand

Government Initiatives Supporting Business in Thailand

Board of Investment Incentive Policies for the Medical Industry

Why You Will Need Our Help?

Success in Healthcare Sector

Thailand has already put in a lot of time and effort to make access to medical care and public healthcare easier. Additionally, government spending on healthcare has quickly increased, from less than 50% in 1995 to almost 80% presently. However, since 2002, Thailand has also had a universal healthcare system in place. As a result of this policy’s success, over 99% of the country’s citizens now have access to public healthcare. 

In Thailand, there are more than 1,000 governmental hospitals and 300 private hospitals. Moreover, these facilities provide a wide range of services that include many different types of treatments. This makes it clear that the public healthcare system in Thailand likely serves practically the whole population.

The Aging Society of Thailand

Even though Thailand has a sizable healthcare industry, the country’s aging population will increase the need for healthcare services in the coming years. Additionally, Thailand is on the path to having an aging population, just like many other nations. It is because the proportion of people over 60 is one of the highest in the ASEAN region when compared to other nations. Furthermore, it is anticipated that by 2045, this share will be higher than that of other regions, including Europe and the US. Therefore, there is little doubt that Thailand’s aging population will continue to increase domestic healthcare demand in the coming years.

Leading Medical Tourism Hub in Asia

Millions of foreign patients get treatments from Thai hospitals due to cutting-edge medical facilities. Additionally, the number of foreign patients at Thai hospitals has been rising quickly. Also, Thailand features top-notch healthcare professionals and world-class medical facilities. Due to this demand, a large number of new medical businesses may be considering entering the Thai market.

Thailand has top-notch medical facilities and takes pride to have the greatest number of private hospitals in Asia. Additionally, a lot of hospitals and healthcare facilities have Joint Commission International (JCI) accreditation. Note that every region of Thailand is represented by the 64 organizations that are JCI-accredited as of December 2018. Bangkok, Nakhon Sawan, Chiang Mai, Chiang Rai, Khon Kaen, Udon Thani, and Phuket are among the provinces where JCI-accredited facilities are found. 

However, the number of medical tourists coming to Thailand has been increasing because of: 

• Reasonable costs of medical treatment 
• High-quality medical and healthcare services 
• Highly developed tourism infrastructure 
• A global reputation for attentive and world-class services 

Therefore, Thailand is growing to be a top medical tourism destination in Asia due to the high standard of medical care and reasonable cost of medical treatment. Please note that Thailand ranks 18th overall and 6th globally in the field of the medical tourism business, according to the Medical Tourism Index (MTI), a measure of a country’s desirability as a destination for medical tourists.

Large & International Market for Healthcare Devices

The eighth-largest market for medical equipment in the Asia-Pacific area is Thailand. At the end of 2020, Thailand is expected to have 538 local medical device manufacturers. Currently, there are two distinct categories of medical devices available on the market. For your information, they are consumable and diagnostic imaging equipment, such as simple medical supplies and patient aids, and the more advanced (and typically imported) devices.

However, the latter offers the greatest potential for prospects for investment from overseas firms. It is only because Thailand’s medical equipment sector is developing, providing both locals and foreigners with good business prospects. Additionally, Thailand is aiming to become the leading healthcare and medical business center in ASEAN by hosting the international expo and congress on medical devices, services, and general healthcare known as Medical Devices ASEAN (MDA).

For your information, the major medical and healthcare manufacturers in Thailand along with their specialties in production are as follows:

Company	Products Manufactured
Nipro (Thailand)	Blood Tubing Set, PTA Balloon Catheter, Hypodermic Needles, and Syringe
Hoya Optics (Thailand)	Glass Molded Lenses, Preforms, Glass Polished Lenses, and Glass Lenses Pressed Blanks
Kawasumi Laboratories (Thailand)	Hemodialysis, Plasmapheresis, Blood Banking and Transfusion, and Infusion Therapy
Reckitt Benckiser Healthcare Manufacturing (Thailand)	Antiseptic, Sore Throat Medicine, Ingestion Remedy, and Immune Support Supplement
Meditop	Diagnostic Product, Cardiovascular Product, Ventilator, Renal Product Group, and Tester
GE Medical Systems (Thailand)	EP Recording, Maternal-Infant Products, Ultrasound, Radiography, Mammography, and Ventilator
Eyebiz Laboratory (Thailand)	Ophthalmic Lenses
Emerald Nonwovens International	Single Use Medical Devices, Surgical Gowns, and Specialty Drapes
Infus Medical (Thailand)	Bone Cement Mixing, Blood Transfusion Products, Apheresis Products, and Drainage Products

S-Curve Businesses in Medical Industry in Thailand

One of the emerging S-curve businesses is the medical device industry. As a result, the government would support efforts to establish Thailand as a medical hub and a hub for the export of medical equipment and gadgets to the CLMV region and other ASEAN nations, where there is an increasing need for such equipment. Additionally, the aging population in Thailand opens up markets for medical products for the elderly.

Moreover, in-country and international medical device manufacture and distribution are still on the rise. This is because Thailand has developed into a natural market for medical equipment due to its reputation as a provider of high-quality, reasonably priced healthcare and as a regional medical center. However, in 2018, Thailand’s medical device imports increased in value from 557 million to 962 million USD. Additionally, the export value increased from 554 million USD to 843 million USD throughout the same time period. Therefore, this pattern shows the expansion of the local market and the significance of the nation as an export hub. 

Growing Domestic Pharmaceutical Market in Thailand

One of the most successful pharmaceutical marketplaces in the Asia-Pacific area is Thailand. Furthermore, the market is anticipated to expand at a compound yearly growth rate of 6.2% under a favorable economic outlook. For these crucial reasons, the pharmaceutical businesses have doubled in size by the year 2020. Nevertheless, the main cause of this is Thailand’s aging population, which has increased the demand for medications. To add on to this, Thailand’s Universal Coverage Scheme (UCS) and the ongoing expansion of medical tourism are additional significant factors. Due to these reasons, nearly 20% of all domestic health spending is now spent on pharmaceuticals, the majority of which is dispersed through Thailand’s public and private hospital networks.

Despite a large number of domestic manufacturers, Thailand relies significantly on imports of pharmaceutical products. To illustrate practically, according to Krungsri Research (2018), the country imported pharmaceuticals worth 2.93 billion USD; 16% of which from China and 12% of which from the United State of America. Therefore, this reflects the fact that there is more room for enterprises wishing to produce and expand their sales in the Thai market. Moreover, for exports, the market is also sizable. Note that, Thailand’s export value stood at 884 million USD, mainly to the neighboring countries.

As of March 2018, there were 194 manufacturers of conventional medicines in Thailand and approximately 90% of these were accredited with the Good Manufacturing Practice (GMP) standards. For your information, this quality standard ensures that all finished pharmaceutical products are produced to a universally acceptable quality. Furthermore, Thailand has been involved in some primary pharmaceutical research and development, namely the ongoing development of vaccines for HIV and various strains of flu.

Government Initiatives for Medical Industry in Thailand

In late 2018, the Ministry of Science and Technology, in collaboration with the Ministry of Public Health and the Ministry of Education, unveiled the ‘Yothi Innovation District’. Moreover, with an anticipated thirteen medical institutions and two universities offering medical courses, it is envisaged as an area that will soon make Thailand the centerpiece of medical innovations. The area will be able to treat approximately 8,000 patients per day and will have more than 7,000 beds available. Additionally, the Strategic Plan is expected to invite more than 100 private organizations to invest in innovation creation and in the improvement of public-private partnerships. In addition, there will also be a number of policies articulated to support new medical experiments, create startups, and build online databases.  

In addition to a continuous attempt to promote a variety of manufacturing activities such as those related to medical devices, pharmaceutical products, and medical food and supplements, the Thai government has placed greater emphasis on the promotion of medical services. Note that, this is part of an initiative to drive Thailand towards becoming the No. 1 medical hub of Asia with a full range of first-class services. To this end, the BOI has provided incentives to stimulate investment in four additional areas of medical services including Thai traditional medical centers, specialty medical centers, hospitals, and medical transportation services.

BOI Investment Incentives for Medical Industry in Thailand

For investment projects that support governmental development goals, the BOI provides a wide range of incentives. Additionally, corporate income tax is exempted as part of the tax incentives, along with import duties on machinery needed for the project and on raw materials or other crucial components used to make exported goods. However, in terms of non-tax incentives, the BOI also permits the hiring of foreign nationals, the taking or sending of foreign cash overseas, and the ownership of land for project purposes.

Eligible Activities	Basic Incentive
Manufacture of high-risk or high-technology medical devices, (e.g. x-ray machine, MRI machine, CT scan machine, and implants) or medical devices that are commercialized from public sector research or collaborative public-private sector research If the projects include R&D and innovation  If the projects do not include R&D and innovation	8 years CIT exemption (no cap)  8 years CIT exemption
Active pharmaceutical ingredients	8 years CIT exemption
Manufacture of other medical devices (except for medical devices made of fabrics or fibers)	5 years CIT exemption
Manufacture of medicine	5 years CIT exemption
Manufacture of medical devices made of fabrics or fibers, e.g. gowns, drapes, caps, face masks, gauze, and cotton wool	3 years CIT exemption
Specialty medical centers	8 years CIT exemption
Hospitals	8 years CIT exemption
Traditional Thai medical public services	5 years CIT exemption

How Can We Help You?

If you are not from Thailand, the major assistance that you can get from us is our expertise in Thai legal, accounting, and taxation process along with decades of experience in the Thai market. Moreover, this will help you focus on your business plan rather than learning the Thai rules and protocols. Additionally, you get the following support from us:

1. Fast Processing of your Applications
2. We complete the Documentation on your behalf
3. Assist in your Immigration and Work Permit Process
4. Full support in your Payroll Management
5. We have a specialized team for Accounting, Auditing & Taxation

Therefore, all you need to have is a brilliant idea, investment, and a trustworthy Thai Partner (if needed). All the other arrangements are completely on us. Additionally, our good, long and healthy relationship with Thai officials and authorities will help in speeding up your company registration process in Thailand.
So, are you thinking to tap the potential of the medicine, pharma, and healthcare market of Thailand? You can book a round of free consultations by emailing us at officer@konradlegal.com.