Problems relating to Trade and Investment on Thailand

 
7. Procedures for the operation of the Foreign Investment Law
Issue
Issue details
Requests
Reference
(1) BOI's Ambiguous New Investment Scheme - While the criteria for investment promotion incentives have been shifted from "zone" to "activity" based incentives, in the absence of the precise implementing rules, Japanese affiliated enterprises get frustrated how to deal with the new policy.
- Elucidation remains pending on the BOI's new investment incentive measures that began since 2015:
-- if extension of the incentive period is possible under the minimum qualifications by cluster,
-- the tax exemption period for investment into machinery
-- the terms and conditions that enable extension of import duty exemption of raw materials and other materials.
- Since 1 January 2015, enforcement on new investment promotion policy (NIPP) has begun from the newly filed applications.
- Since 1 January 2015, enforcement has begun on NIPP. The incentive details and business criteria between the new and going policies differ respectively. While enterprises approved under the going (old) policy may enjoy the benefit until the termination date, some problems remain such as restricted business expansion, etc. The domestic economic deterioration is another concern due to the dwindling direct investment from overseas into Thailand, and exodus of business abroad.		 - It is requested that BOI prepares (article by article) guideline for the policy that precisely elucidate implementing examples.
- It is requested that GOT promulgates precise details of the new scheme.
- It is requested that GOT:
-- discloses the substantive information on approval or disapproval, and
-- clearly identifies the exact date of the renewal deadline.
- It is requested that BOI:
-- flexibly implements the NIPP, and
-- expedites the information disclosure.		 - Announcement of BOI No. 2/2557 Policies and Criteria for Investment Promotion
- Foreign Business Act B.E. 2542
  (Action)
- On 3 December 2014, Thai Board of Investment (BOI) promulgated announcement of BOI No. 2/2557 (new) policies and criteria for investment promotion applicable o the subsequent 7-years (2015-2021) (with its Japanese translation uploaded on the same day at BOI's home page).
- On 9 March 2015, BOI promulgated "Announcement. No. Sor. 1/2558. Re: Additional Amendments of Eligible Activities for Investment Promotion in accordance with the BOI announcement No. 2/2558" with the view to enhance the practical beneficial effect of its investment promotion policy, as regards filing of complaint on BOI's decisions, tariff incentives, and new establishment of respective subcommittees.

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