As we approach mid-February, all BOI-promoted companies are required to submit their progress report through the BOI e-monitoring system. This submission, which is required twice a year (by the end of February and July), is vital for ensuring your company is still on track and remains compliant with BOI regulations and continues to receive the benefits of investment promotion.
Why is the Progress Report Important?
The progress report is a key tool for the BOI to monitor and evaluate the development of projects under its promotion. It provides the BOI with essential information on your company’s progress towards meeting its investment objectives and obligations. Failure to submit the report on time could result in a warning letter from the BOI and may lead to delays or discontinuation of BOI benefits, including tax incentives and other privileges.
Required Information in the Progress Report
When preparing your progress report, be sure to include detailed and accurate information reflecting your company’s performance in the following areas:
1. Company Profile & Overiew
The company will be required to provide updated details about company profile, including name, registered address, factory location, and details of contact information, especially the company’s email address which the BOI will use as the main channel for communication with the company.
2. Investment Progress
The company will need to provide the information regarding the actual investment which the company has made so far, covering the following:
a) Land purchase/lease
b) Construction costs of factory/building
c) Machinery investment
d) Other assets such as fixed assets, vehicles, or intangible assets
e) If the investment has not yet started, include plans and timelines for when the company expect to begin.
The BOI will require that the figures on the above investments between the previous years and the current year to be compared. This will help to make sure that the company will meet the target of full compliance on the third year of operation.
Such target for each company would be different according to the business plan declared to the BOI upon applying for promotion. However, the minimum must be not less than 1 million baht.
3. Operational Milestones
The company will be required to provide an update on key operational achievements, such as the first date of revenue generation or your projected timeline for generating income.
4. Additional Information Required for Software Businesses
For those companies which received the BOI promotion in Software, Digital, or e-Commerce business, additional information below will be required.
a) Details of Hardware and Software
- Hardware: The BOI will require the company to declare the list and value of hardware that the company has purchased, import, or rented so far. The hardware includes computers, notebooks, tablets, smartphones, servers, etc.
- Software: it must include the name of each software program and the value which the company has purchased, import, or rented.
- In case of renting, the rental period must be not less than 1 year.
b) Progress of Software Development
One of the required information for software related business is development progress of software system developed by the company so far. The company is required to specify the stage of development (i.e., gathering information, development, or testing).
c) Employment Data
- Report on the number of employees and their salaries, with specific focus on the BOI’s requirement of newly employed Thai IT personnels to work in software development team with a minimum total salary of 1.5 Million Baht annually.
- However, it is worth noting that, for software projects promoted by the BOI prior to 2021, the requirement for employment of software development team does not limit to only Thai nationals. This means foreign IT experts can be employed, and their salaries can be included in the calculation of the minimum 1.5 Million Baht annual salary requirement.
What Happens After Full Operation?
Once your BOI-promoted company reaches full operation, the requirement to submit progress reports is no longer required. Full operation means that the business has successfully met all the milestones and conditions stipulated by the BOI and is functioning without the need for further monitoring.
- The deadline for reaching full operation is 3 years from the BOI certificate issuance date.
- For software businesses (which do not involve machinery importation), a one-time extension of up to one year could be requested.
- For manufacturing businesses, the deadline can be extended along with the extension of machinery importation period, for a maximum of 3.6 years.
Conclusion
Submitting progress reports via the BOI e-monitoring system is an essential part of maintaining the investment privileges your company receives. These reports must be submitted twice a year, February and July. By submitting complete, accurate, and timely reports, you ensure your company continues to benefit from BOI support and avoids any potential penalties or disruptions. Once your business reaches full operational status, the reporting requirement will no longer apply.
