Phuket is a magnet for tourism, very many attractions, the tourism industry Phuket are always hot and BOI promotions (Thailand’s Board of Investment) for Tour business are always mutually beneficial to investments. The BOI website provides very useful information. However, this article gives you addition information which covers all types of Tour business in Thailand under BOI business categories. Whether you are a startup or you are aiming at expanding business into Phuket tourism market. BOI promotion gives several advantages over business performance.

Tourism Industry Categories by BOI

Tourism Promotion Services

  • Ferry services or Tour boat services or renting.
  • Tour boat port services.
  • Amusement parks with a minimum investment of 500 million baht.
  • Thai cultural or craft centers with a minimum investment of 30 million baht.
  • Open zoo with a minimum investment of 500 million baht.
  • Museum with a minimum investment of 30 million baht.
  • Race tracks with the Federation International de L’Automobile (FIA) or Federation International de Motocyclisme (FIM) standard.
  • Cable cars with a minimum investment capital of 100 million baht.
  • Cruise terminal.
  • Man-made attractions with a minimum investment capital of 100 million baht.

Activities to Support Tourism

  • Hotels with minimum 100 rooms and minimum investment of 2 million baht per room. Or a hotel with less than 100 rooms with a minimum investment of 500 million baht.
  • Convention halls with a minimum convention area of 4,000 square.
  • International exhibition centers with a minimum indoor area of  25,000 square meters.

Benefit of The BOI

All tourism business types have a 5 years corporate income tax (CIT) exemption equal to 100% of investment, the investment excludes cost of land and working capital. The CIT exemption together with exemption of import duty on machinery and import duty on raw materials for production for export, if any. Some businesses, the CIT exemption is not limited to the capital investment but most of them are in other business categories, not Tourism business.

However, for hotel business the CIT exemption depend on locations, the province famous for tourism (Krabi, Bangkok, Kanchanaburi, Chachoengsao, Khon Kaen, Chon Buri, Chiang Mai, Nakhon Pathom, Nakhon Ratchasima, Nonthaburi, Pathum Thani, Prachuab Khiri Khan, Phra Nakhon Si Ayutthaya, Phang-nga, Phetchaburi, Phuket, Rayong, Songkhla, Samut Prakan, Samut Sakhon, Sarabuti and Surat Thani) has zero year (CIT) exemption but grants the rights to craftsmen and freehold land. Hotel business in other locations (CIT), the CIT exemption is 4 years together with the exemption of import duty on machinery and import duty on raw materials for production for export, if any.

Investment Capital

Some tourism businesses don’t have minimum investment, some do! All investment capital investment mentioned above exclude cost of land and working capital but include costs of construction as below;

  • In case of own construction, it includes the costs of construction of office building, infrastructure, facilities and modifications.
  • In case of acquiring or using existing buildings, includes the value specified in the purchase agreement or the book value of the company at the latest accounting period.
  • In case of office or factory rental, includes rent specified in the lease agreement, of which the duration of rent must exceed three years.

For the hotel, convention hall and international exhibition center business, construction costs, decoration costs, furniture and equipment and necessary system costs

Relevant Laws

All tourism businesses are subject to relevant laws although BOI didn’t mention them at the time of application. For example; Amusement parks, hotels, Open zoos, cable cars, man made attractions must abide by Environmental Impact Assessment  (EIA), building control. Ferry services, Tour boat, Boat port services must abide by marina rules and regulations etc.

Qualifications of Applicant

All the BOI promotions for Tourism Business are only for a Thai limited company, Thai cooperative or Thai foundation, not a private individual. However, if those juristic persons have not yet registered, an application for the promotion may be made by an individual and a juristic person must be established within 6 months before the application for an investment promotion certificate.

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Number of Promotion Certificate

One company may have more than one promotion certificate, and request for a combination of two or more promotional certificates later for management benefits or other. However, each promotion should be fully operational and finish the CIT exemption. If not, all CIT exemptions will waive equal to the project with the least benefits.

BOI Certificates Not Transferable

When the promoted person transfers or sells the promoted business to others. The promotion certificate can be used for 3 months from the date of business transfer or sale. The buyer must apply for a new promotion certificate, the CIT exemption and other benefits will be the remaining benefits of the seller, nevertheless, taking over the company is an option!

In conclusion, whether tour business or not, business location in Phuket or other province in Thailand, the BOI promotion is advantage over your investment, it saves a big amount of tax payment together with other advantages of business performance. Whether you are a startup or looking for expanding you business into Phuket tourism industry. If you have any questions about business start up or business expansion to Phuket or Thailand, or any fortune information, just feel free to contact us!