BOI TISO

What is BOI TISO ?

BOI TISO is a specialized platform that provides targeted support and guidance to companies wishing to establish or expand their operations in the country.

It’s important to understand that the BOI certificate under TISO is not issued for the whole company, but for the specific business process.

For example, your company provides business advice and administrative support to other companies. It also manages business seminars, from arranging the venue to inviting guest speakers.

Based on the scope of work provided by the BOI under the TISO, the company’s business must be within the scope of the work supplied. You provide advice and technical support on the use of specific IT software. This would be Business A. Business B would be providing administrative support to companies. Selling business seminars would be activity C. All these activities are carried out by one company.

Business A and Business B are within the BOI office’s scope of work. Your company will receive a BOI certificate to operate these businesses under the TISO scheme, where you can employ more foreigners.

However, Business C is outside the scope provided by the BOI office under the TISO. As a result, this business activity will not meet the criteria and the BOI certificate will be refused.

However, suppose the company still wishes to operate Business C. In that case, separate accounts will be required to track all business activities under the BOI promotion and the business activity that doesn’t fit.

What are the different application criteria for BOI TISO? 

To satisfy the BOI TISO’s condition, promoted under the Board of Investment, intended to be promoted project must have a business plan and scope(s) of business approved by the Board, as follows: 

• Monitoring and servicing to associated enterprises, including office building or factory building, rental service for related enterprises, and lending to associated enterprises outside the scope of a treasury center can be implemented under the exchange control laws such as: The lending of foreign currency loans to associated enterprises in foreign countries : 

-Advisory services on business operations. 

-The lending of Thai baht loans to associated enterprises in Thailand. 

-The lending of Thai baht loans to associated enterprises in Vietnam and countries bordering Thailand, with a requirement of using them only for trading and investment in Thailand or the countries mentioned above. 

• Advisory services on business transactions, except those involved in buying and selling securities, accounting, foreign currency exchange, legal, advertising, architectural, and civil engineering businesses. 

• Information services on goods sourcing.

• Engineering and technical services, except those related to architectural and civil engineering services.

• Business activities associated with machinery, engines, tools, and equipment manufactured by associated enterprises or officially authorized by the manufacturer. The project must have at least one of the following scopes of business:

-Importing of wholesale

-Training Service

-Installation, maintenance, and repair

-Calibration

• Wholesaling of products manufactured in Thailand.

• International business process outsourcing provides services through telecommunication networks, such as Administration Services, Finance & Accounting Services, Human Resource Services, Sales & Marketing Services, Customer Services, and Data Processing.

What incentives are available for BOI TISO projects? 

When projects are carried out as part of the BOI TISO promotion, they will be eligible for the following incentives:

What criteria must a project meet to apply for BOI TISO under the Board of Investment?

To apply for the BOI TISO, the project must meet specific criteria: 

• Annual sales and administrative expenses must be at least 10 million baht. The yearly expenditure can include office rent, staff salaries and other costs related to the business. 

• Investment in the project, improvement of office space or construction of office space, bringing in equipment/machinery to be used for the project (preferably new; however, if there is a specific machine/equipment, it could be second-hand) must be at least 2.5 million baht.

What are BOI TISO’s benefits?

The advantages of having your company sponsored by TISO are as follows :

• 100% foreign ownership
• Visas & Work Permits: Under the TISO, the company does not have to comply with the 4 Thai to 1 foreign employee ratio. This 4:1 ratio will be waived or significantly reduced based on the project’s manpower plan.
• Foreign land ownership under the TISO project (The TISO-promoted project must use/utilize the land.

Based on our experience, companies with 3-4 highly qualified foreign executives and managers, 7-8 local staff, plus office rent all exceed the required THB 10 million (USD 286,000) administration and annual sales expenses per year. (Under the BOI TISO scheme, the ratio of 4 Thai employees to 1 expatriate employee is waived).

What are BOI TISO’s disadvantages?

The disadvantages of TISO are as follows: 

• There are no tax incentives for this category. 
• Annual sales and administrative expenses must not exceed THB 10 million per year.  
• Due to the limited scope of business services that TISO can support or provide, additional business services will be added outside the scope of TISO promotion. This will result in the need for a dual accounting system. First, the accounting will cover the business services under the TISO scheme. Second, the accounting will cover businesses/services not covered by the TISO scheme.    

The time frame for applying for TISO is 2 to 4 months. However, please understand that any delay in the application may affect the timeframe as we rely on your input regarding some essential information about the project.

What is the procedure for applying for BOI TISO?

It’s essential to follow a few steps to apply for TISO correctly. Here is a general outline of the process:

• Step 1. Determine eligibility : The applicant must ensure that they meet the eligibility criteria set by the Thai authorities for applying for a TISO. These criteria include being a Thai national, having a legitimate reason for transporting valuables and meeting all relevant security and financial requirements.

• Step 2. Prepare documentation : Gather all the necessary documentation to apply for a TISO. This may include :
• Application form: Obtain and complete the official TISO application form.
• Supporting documents: Provide documents to prove the legitimacy of the goods being transported, such as invoices, certificates of origin and other relevant documentation.
• Personal Identification: Provide copies of personal identification documents, such as a passport or national identity card.
• Security Plan: Develop a comprehensive security plan detailing the measures that will be taken to meet the security requirements for valuables during transportation.

• Step 3. Submit your application : Submit the completed application form and all required documents to the relevant Thai authorities. The authority responsible for TISO applications may vary, so it is essential to check the correct authority.

• Step 4. Review and approval : The authorities will review the application and supporting documents. They may carry out background checks and verify the information provided.

• Step 5. Safety assessment : The applicant’s security plan will be assessed as part of the process. The plan should outline how the valuables will be protected during transport, including details of security personnel, vehicles, routes and other security measures.

• Step 6. Payment : Pay any required fees associated with the TISO application. Fees may vary depending on several factors, such as the value of the items being transported and the security measures in place.

• Step 7. Issue of TISO : If the application is approved, the Thai authorities will issue the TISO outlining the conditions and requirements for transporting the valuables.

• Step 8. Compliance and reporting : The holder of the TISO must comply with the conditions set out in the licence, including the approved security plan and transport schedule. They may also be required to provide regular reports to the authorities on the transport process.

It’s important to remember that the above steps are a general overview and the actual procedure may have changed or may vary depending on specific circumstances. You should contact the relevant Thai authorities or government agencies responsible for TISO applications for the most accurate and up-to-date information.

What is the purpose of BOI in Thailand?

The Board of Investment (BOI) in Thailand is a government agency whose primary objective is to promote and facilitate local and foreign investment. The BOI was established to promote economic development, stimulate investment in critical sectors, and enhance Thailand’s competitiveness in the global marketplace. The BOI’s main objectives and purposes include :

Attracting investment : The BOI aims to attract domestic and foreign investors by offering various incentives and benefits. These incentives are designed to make investment in Thailand more attractive than in other countries.

Economic development : The BOI is crucial in promoting Thailand’s economic growth and development. By encouraging investment in strategic sectors, the agency contributes to job creation, technology transfer and the overall improvement of the business environment.

Improving competitiveness :The BOI enhances Thailand’s competitiveness by promoting investment in industries critical to the country’s development. This includes sectors such as manufacturing, services, technology and infrastructure.

Technology transfer : The BOI promotes technology and knowledge transfer by attracting foreign companies with advanced technologies to set up operations in Thailand. This helps to upgrade local industries and encourage innovation.

Export promotion : Many BOI-funded projects focus on export-oriented industries. By supporting businesses contributing to exports, the BOI aims to improve Thailand’s trade balance and strengthen its position in the global market.

Job creation : Investment promoted by the BOI leads to job creation, which is essential for the country’s economic well-being. The agency aims to create employment opportunities in various sectors.

Regional development : The BOI contributes to balanced regional development by promoting investment in different regions of Thailand. This helps to spread economic activity more evenly throughout the country.

Environmental sustainability : The BOI has also emphasized sustainable and environmentally friendly investment in recent years. Incentives are provided for projects that comply with green and sustainable development principles.

Investment facilitation : The BOI acts as a one-stop service center for all investors, streamlining bureaucratic processes and assisting in obtaining permits and approvals. This simplifies the investment process and makes it more attractive to businesses.

Overall, the BOI and the BOI TISO plays a crucial role in creating a favorable investment climate, supporting economic growth, and positioning Thailand as an attractive destination for local and international investors.

What are the eligibility criteria for BOI incentives?

The eligibility criteria for receiving incentives from the Board of Investment (BOI) in Thailand can vary based on the type of project, industry, and the specific promotion policy at the time. However, businesses must meet some standard criteria and considerations to qualify for BOI incentives. Here are some general eligibility criteria:

• Type of Business

The business should fall within the list of promoted activities specified by the BOI. Different industries and sectors may have different criteria and incentive packages.

• Investment Size

There is usually a minimum investment requirement for businesses to be eligible for BOI incentives. The investment can include both capital expenditures and working capital.

• Project Location

The BOI may have specific policies to promote investment in certain regions or provinces. Businesses considering locations that align with regional development goals may receive additional incentives.

• Technology Level

Projects incorporating advanced or high-technology elements may be eligible for additional incentives. The BOI often encourages the transfer of technology to enhance the competitiveness of local industries.

• Export Orientation

Export-oriented businesses may be eligible for special incentives. This can include tax breaks, exemptions, or other benefits to encourage and support international trade.

• Environmental Considerations

Projects incorporating environmentally friendly practices and sustainability may be eligible for incentives or additional support. The BOI may encourage investments that align with green and sustainable development goals.

• Job Creation

Projects that generate employment opportunities for Thai nationals may be favored. The number of jobs created is often a factor in determining eligibility for specific incentives.

• Local Raw Material Utilization

The use of local raw materials in the production process may be incentivized. This supports domestic industries and contributes to the country’s overall economic development.

• Compliance with Laws and Regulations

Businesses must respect relevant laws and regulations in Thailand. Compliance with labor laws, environmental regulations, and other legal requirements is crucial for eligibility.

• Ownership Structure

The BOI may have specific requirements regarding the business’s ownership structure, especially for foreign investors. Some incentives may be contingent on the level of foreign ownership.

It’s fundamental to note that the criteria and incentives can change, and businesses should check the latest BOI guidelines and policies for the most up-to-date information. Additionally, companies may seek advice from BOI TISO officials or consultants to ensure they meet the specific requirements for their intended projects.

Often asked questions: 

Do we need to register a company and then apply for the TISO? 

No, you can apply for the BOI promotion first. Then, once your application is considered and passes, you will be asked to register a new company for the promoted business under the BOI TISO promotion. 

Can we use an existing company to apply for the BOI promotion? 

Possible. But it’s not advisable. The only exception is if the current company has been operating and its business fits the scope of work by 100%. (Your company must disclose sensitive information like financial statements, etc.). 

How many foreign employees can we hire under the BOI TISO company? 

The 4 to 1 ratio will be removed. But you will be asked to provide a detailed classification of the staff (foreign and local) you will be hiring for the 1st, 2nd, and 3rd year of the business operation and explain what each person will be doing, desired qualifications and work experience. 

But do not expect the BOI officer to allow your company to have ten foreign employees and only one Thai employee.