Difference between applying for BOI and IEAT

Difference between applying for BOI and IEAT

Office of the Board of Investment (BOI) and Industrial Estate Authority of Thailand (IEAT) is a government agency responsible for promoting investment and industrial development in Thailand. The two agencies have different roles, causing the request for BOI or IEAT to be different as well. Both BOI and IEAT are connected in promoting investment in industry in Thailand.

What is BOI?

BOI is an agency whose main duty is to promote investment. By issuing investment promotion measures to both Thai and foreign investors. The BOI's investment promotion measures cover taxation, investment, labor, finance, marketing, and others, with conditions for providing benefits to investors. By considering various factors such as the type of industry. Value of investment, job creation, use of technology, etc.

Important BOI tax benefits include:

  • Exemption from corporate income tax
  • Reduce corporate income tax
  • Exemption from import taxes
  • Reduce import taxes

Other important BOI benefits include:

  • Relaxation for importing foreign workers
  • Allowed to take foreign currency out of the Kingdom.
  • Allowed to send dividends out of the Kingdom.

What is IEAT?

IEAT is a state enterprise agency whose main responsibility is to develop industrial estates and industrial zones. To be a place to support foreign investment, IEAT has more than 60 industrial estates throughout Thailand. IEAT's industrial estates have received complete infrastructure development. Suitable for all types of industrial operations.

Important IEAT benefits include:

  • Tax benefits from BOI
  • Land rights such as land sales, land rentals
  • Utilities benefits such as electricity, water, roads, and sewers.
  • Administrative benefits such as labor services financial services

Comparison of BOI and IEAT

The following table compares BOI with IEAT in various aspects.

section

BOI

IEAT

Agency

Office of the Board of Investment

Industrial Estate Authority of Thailand

Main duties

Promote investment

industrial estate development

Type of benefits

Taxation, investment, labor, finance, marketing

Taxes, land rent, utilities

goal

Attracting foreign investment Promote new industries

industrial estate development Increase production efficiency

Advantages and disadvantages of BOI and IEAT

Advantages of BOI

  • Comprehensive and diverse tax benefits
  • Investment benefits that facilitate the development of new industries
  • Be accepted by foreign investors

Disadvantages of BOI

  • The process for considering applications for investment promotion is complex.
  • Conditions for applying for investment promotion may not be consistent with the needs of some investors.

IEAT Advantages

  • IEAT industrial estates have fully developed infrastructure.
  • Located in a suitable location
  • Land rental costs are lower than private industrial estates.

Disadvantages of IEAT

  • Less tax benefits than BOI
  • Investment benefits are not as comprehensive as BOI.

Guidelines for choosing to use BOI or IEAT

Choosing whether to apply for BOI or IEAT depends on several factors, including:

  • Type of industry
  • Factory location
  • Investment objective

If investors want comprehensive and diverse tax benefits, they should consider requesting BOI to receive investment promotion. However, if investors want convenience in doing business, IEAT industrial estates may be more suitable.

Requesting BOI and IEAT which are government agencies and play an important role in promoting investment and industrial development in Thailand. Both agencies have different strengths and weaknesses, so investors should study the information of both agencies carefully before deciding to use their services.

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