Criteria for Foreign/Thai Ownership: When considering the extent of foreign ownership to be allowed to a promoted project, the BOI requires the following:

	If the production is to be mainly for domestic distribution, Thai nationals must own at least 51% of the capital.
	For an investment project in agriculture, animal husbandry, fisheries, mineral exploration and mining or in the service sector Thai nationals must usually own not less than 60% of the capital.
	If at least 50% of the output is to be for export, foreign investors may hold a majority of the shares. If 100% of the production is to be exported, foreigners may own all the shares.
	Where there are justifiable reasons, the BOI may grant exceptions under certain stipulated conditions and taking into account the following factors:

(a)	The amount of investment required.
(b)	The level of technology involved.
(c)	The local employment created.
(d)	The factory or plant location.
(e)	The project's social and economic benefits, and
(f)	Any other appropriate considerations. It is important to point out tha certain items are not eligible for duty exemption where there is an adequate local supply.

INDUSTRIAL ESTATE AUTHORITY OF THAILAND

The IEAT is a state enterprise that was established under the Ministry of Industry. It was created in order to implement the government’s industrial development policy and provides investment incentives based on a series of zones. 

There are generally four zones within a given industrial estate: General Industrial Zone; Export Processing Zone; Commercial Zone and Residential Zone. The General Industrial Zone is designated for industry generally and contains factories with intended output to either the domestic or overseas market.

The Export Processing Zone is designated specifically for those enterprises that are manufacturing for export. The Commercial Zone contains non-manufacturing activities such as banks, post offices etc. that support the activities of the industrial estate. Lastly, the Residential Zone contains the housing quarters for both the employers and employees.

The investment incentives offered by the IEAT in many aspects mirror those granted by the BOI. Both the General Industrial Zone and the Export Processing Zone offer benefits relating to land ownership by a foreign entity, facilitation of work permits and visas for expatriates and remittance of foreign currency for the foreign entity.

Additional benefits granted to those enterprises located in the Export Processing Zone relate to the exemption of import duties and VAT for the import of capital goods and spare parts, raw materials, packaging materials, the exemption of export duties and VAT on the export of goods and the exemption of export duties, import duties and VAT for local goods used in production.

Index Page