Congratulations! Your business in Thailand has received a BOI promotion. You can expect a world of incentives, tax breaks, and easier operations. With those advantages, however, comes a burden most enterprises ignore: adhering to the annual reporting standards of the BOI.

The reports are not hard, but specific. Missing something may cost you time, a reprimand, or even the loss of privileges. Here is what you really need to file annually.

Annual Operation Report (Form S.2)

This is the big one. All the companies promoted through BOI are required to present an annual report of business activity within the last year.

It includes details like:

·     Your revenue.

·     Output of production or output of a service.

·     Imported machinery and raw materials.

·     Local purchases and expenses.

·      Number of employees

·      Overall project progress

Consider it as your annual BOI check-up. It demonstrates that you are not deviating from your approved business plan.

Late filing or not filing it at all is one of the most frequent reasons why businesses get onto the BOI radar. Luckily, you can work with specialists like https://vbapartners.com/boi-company/ who understand Thai accounting standards and BOI expectations

Annual Financial Statement and Audit Report

With or without BOI, all the companies in Thailand are required to prepare financial statements and audit them annually. However, in the case of BOI companies, these documents are even more important.

The BOI will review the financial statements of your financial report and compare them with the data you provided in your S.2 report to ensure that:

·      Your activity corresponds to the level of revenue.

·      Your costs are in line with your approved project.

·      You are moving along well in your investment.

This step is much easier with clean and accurate accounting. It makes sure that nothing is out of place when the BOI examines your figures.

Recent employment data

Incentives provided by BOI may involve the recruitment of skilled personnel, particularly when the project is technological or specialized.

You are required to report your:

·      Number of Thai employees

·      Number of foreign employees

·      Employment roles and qualifications.

This assists the BOI in ensuring that your company is fulfilling its role of ensuring the development of the local workforce, as it promised.

Machinery and equipment updates

When your project includes the production of products, technology equipment, robots, or specialized equipment, you will have to disclose:

·          New machinery you purchased.

·      Duty-free imported machinery.

·      Anything you moved, changed, or disposed of.

The BOI monitors this since exemption of import duty is one of the key incentives.

Any significant project amendments

The BOI would like to know, in case your business grows, changes focus, outgrows its forecasts, or requires modifications.

The common changes that should be reported are:

·          A change in shareholders.

·          A new manufacturing process.

·          New product lines.

·      Moving or increasing factories.

Most companies do not deliberately conceal changes. They simply do not know that they must report them. If you are not sure whether a change is to be reported, consult a BOI professional.

Final thoughts

Annual BOI reporting is your means of safeguarding the incentives that you have struggled to acquire. Many companies engage accounting experts to fulfill all the requirements without blind guesses.

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