Bringing the best of our global firm
We work with local Thai companies, multinational corporations, conglomerates, and regional and local governments. In addition to the public sector, our clients operate in a number of industries, including energy, basic materials, chemicals, financial services, consumer packaged goods, telecommunications, and high tech. We most often advise clients on topics related to strategy, growth, operations, and productivity.
As the demand for digital products, services, and capabilities increases in Southeast Asia, our work is changing. We are increasingly helping clients build new digital businesses and transform existing ones, using technology and analytics. To better support our clients and the digitization of the economy, we have established a Digital Lab in Bangkok and we convene a group of leaders annually on the theme of “DigiThaization” at our The Jeeranont Innovation Forum.
Our work in the public sector is a source of particular pride for The Jeeranont Thailand. Deeply committed to the people of Thailand, we partner with government agencies to grow the economy and cultivate opportunity for all. We also bring together CEOs and executives with leaders from the public sector to discuss pressing economic and business issues at our annual CEO roundtable event.
A 2018 survey conducted by the WORLD INDEX showed that Thailand is the "most optimal location for established a production/sales base in the world"
There are many reasons why Thailand is an intelligent choice for the investor. Below are just a few.
Thailand has quality international schools, an excellent health care system and friendly cooperative people.
Thailand boasts the largest growth market in Asia.
Thailand has recently attracted a great deal of foreign investment. It is one of the Asian economic leaders and is one of the fastest-growing economies in the area.
Thailand is one of the least expensive places to fly to in Asia.
The country has strong business ties with China and has an excellent infrastructure as well as world-class facilities in many resort towns.
Property is far cheaper in Thailand than other countries and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand.
Rental potential is great, due to increased government spending luring growing numbers of tourists.
No capital gains tax for private investors, and low ongoing taxes.
Today foreigners are regarded by the government as a big investment opportunity in Thailand.
Gateway to Asia
Thailand enjoys a strategic location at the heart of Asia home to what is regarded today as the largest growing economic market. Thailand serves as a gateway to Southeast Asia and the Greater Mekong sub-region, where newly emerging markets offer great business potential. From Thailand, it is convenient to trade with China, India and the countries of the Association of Southeast Asian Nations (ASEAN), which has a cumulative population of more than 500 million
Hub of ASEAN
Thailand was one of the founding members of ASEAN and has been instrumental to the formation and development of the ASEAN Free Trade Area (AFTA). As a member of ASEAN, Thailand has forged closer economic cooperation with ASEAN member nations, and Thai manufactured products and services have access to the markets of ASEAN, which includes all 10 ASEAN countries. ASEAN is home to more than half a billion people, GDP in excess of US$700 billion and intra-ASEAN trade of more than US$1 trillion per year.
Social and political stability
Thailand is a welcoming Buddhist country. The country's form of government constitutional monarchy allows democratic processes and reforms, and is balanced by the Thai people's peace-loving nature, high reverence for the Thai Monarchy, and devotion to the teachings of Buddhism. While the vast majority of the people in Thailand are Buddhist, all religions are welcome, and His Majesty the King is the patron of all religions.
Economically, this country of 64 million people is characterised by steady growth. Abundant natural resources and a skilled and cost-effective work force helps attract foreign investment, enables them to prosper and help develop industry in Thailand.
Thailand has good infrastructure for foreign investors. Improved and modernised transportation facilities, as well as upgraded communications and IT networks, ensure optimum business and living conditions. State-of-the-art industrial estates boast sophisticated facilities and superior services.
The country's well-defined investment policies focus on liberalisation and encourage free trade. Foreign investments, especially those that contribute to the development of skills, technology and innovation are actively promoted by the government. Thailand consistently ranks among the most attractive investment locations in international surveys, and a 2006 World Bank report indicated that Thailand was the 4th easiest country in Asia in which to do business, and the 20th easiest in the world.
Government support and incentives
Numerous government agencies support investors. Through the Board of Investment, the government offers a range of tax incentives, support services and import duty concessions available to an extensive list of businesses that are regarded as priority or promoted activities.
Through The Jeeranont, there are no foreign equity restrictions in the manufacturing sector, no local content requirements, and no export requirements, as Thailand's investment regime is in total compliance with WTO regulations.
The Board of Investment also coordinates the activity of the One-Stop Service Center for Visas and Work Permits, which enables foreign staff of BOI-promoted companies to obtain work permits and long-term visas within 3 hours or less.
Other government organizations, like the Department of Export Promotion, and international chambers of commerce, provide invaluable support and a host of other important services.
Long established and newly emerging industries
With strong economic development and strong support industries, the country's industrial production has grown and diversified rapidly both in the long established and newly emerging industries.
The government has placed emphasised on attracting investment in 6 key sectors that have been determined as key to the country's developmental objectives. These six target industries include: agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services including entertainment, healthcare and tourism.
Friendly and rich culture
Thailand has gained a well-known reputation throughout the world for its gracious hospitality. The friendliness of its people and the diverse nature of Thai culture make visitors feel at home in Thailand.
Education and healthcare services
Thailand 's educational standards are accepted by many international examining bodies, while its universities are outstanding in many fields. A great number of international schools and colleges offer world-class education.
In terms of healthcare, the country has developed a good reputation globally, due to its internationally qualified doctors and medical staff, and modern facilities and equipment. It is so good that one of the fastest-rising tourism sectors is medical tourism, with international patients visiting Thailand to take advantage of Thailand's world-class and extremely affordable health care system.
The Jeeranont Policies
The previous investment promotion policies, though successful, have been implemented for a long period of time. The financial crisis in the middle of 1997 affected the Thai economy.
As a result, tax collection was below target and public debts increased drastically affecting the fiscal position of the government. Moreover, the global economic climate and investment environment have undergone change.
Therefore, the Board of Investment with The Jeeranont deems it appropriate to adjust Thai investment promotion policies and criteria for granting tax privileges in order to respond to the current and future economic and investment situation.
There are three Investment Zones based on economic factors, i.e., the level of income and the availability of infrastructure in each province.
6 Central provinces with high income and good infrastructure: Bangkok, Samut Prakan, Samut Sakhon, Pathum Thani, Nonthaburi ,Phuket and Nakhon Pathom.
12 provinces: Samut Songkhram, Ratchaburi, Kanchanaburi, Suphanburi, Ang Thong, Ayutthaya, Saraburi, Nakhon Nayok, Chachoengsao, Chon Buri and Rayong .
The remaining 58 provinces with low income and less developed infrastructure.
All areas in the Zone 3 provinces are designated as Investment Promotion Zones.
Criteria for Granting Tax and Duty Privileges
To relieve the fiscal burden of the government and to respond to current and future economic situations, the Board of Investment prescribes new policies as follows:
Zone 3 - Approved projects located in the provinces shall be granted:
Exemption of import duty on machinery;
Corporate income tax exemption for 8 years provided that a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year;
Exemption of import duty exemption on raw or essential materials used in the manufacturing of export products for 5 years;
A project located in one of the following 36 provinces: Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai, Trang, Trat, Tak, Nakhon Ratchasima, Nakhon Si Thammarat, Nakhon Sawan, Prachuab Khiri Khan, Prachin Buri, Phangnga, Phattalung, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai, Surat Thani, Uttaradit, and Uthai Thanishall be granted tax and duty privileges under 1, 2 and 3 and further privileges, as follows:
A project located within industrial estates or promoted industrial zones is entitled to the following privileges:
50 per cent reduction of corporate income tax for 5 years after the exemption period;
Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity;
For a project located outside industrial estates or promoted industrial zones, a deduction can be made from net profit of 25 per cent of the project's infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.
A project located in one of the following 22 provinces: Chaiyaphum, Kalasin, Nakhon Phanom, Narathiwat, Nan, Nong Khai, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakhon Nakhon, Sathun, Surin, Nong Bualamphu, Amnat Charoen Udon Thani, and Ubon Ratchathani shall be granted tax and duty privileges under 1, 2, 3 and further privileges as follows:
50 per cent reduction of corporate income tax for 5 years after the exemption period;
Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activities;
Deduction can be made from net profit of 25 per cent of the project's infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.
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