Board of Investment Promotional Application

The Assignment

Thailand BOI promotional privileges application assistance

  • Founded in 1906, Kellogg Company (Kellogg) is the world’s leading producer of cereal and a leading producer of convenience foods. Kellogg’s products range from cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods to Pringle’s brand stackable potato chips.
  • Kellogg is expanding its Rayong cereal and snacks plant as part of several changes to optimize its global manufacturing network
  • As part of this expansion, Kellogg (Thailand) wants to again apply for BOI promotional privileges for its expansion project to benefit from the tax and non-tax incentives the Thailand government currently provides to investors.
  • Kellogg engaged Tractus to assist in applying Thailand BOI promotional privileges application.
Project

Tractus’ Solution

In-depth experience negotiating incentives across Asia and specifically in Thailand

  • Tractus gained a basic understanding of Kellogg’s investment plans and the manufacturing activities to be located in Thailand
  • Tractus advised on how best to maximize the potential privileges Kellogg could qualify for and streamline and accelerate the application process
  • During the application process and periodic reviews with BOI officials, Tractus worked closely with Kellogg to make sure the investment plan, forecast business growth (domestic and export), technology, employment potential and support of the Thai food processing sector were appropriately positioned in the application to ensure a fast review with a goal to maximize available incentives.
  • Tractus also reviewed with the BOI officials responsible for Kellogg’s application as well as senior BOI officials to ensure that there were no major omissions or questions about the application that could lead to a delay in the approval or not receiving promotional privileges.

Result

Successfully pursued BOI privilege

    • Kellogg received a BOI’s investment incentive approval (both tax and non-tax incentive) such as corporate income tax and import duty exemptions, and to bring in expat to work on the project.
    • Corporate income tax holiday for 8 years could allow Kellogg to save up to approximately US$26 million
    • Kellogg also requested Tractus to help on several other related BOI project afterwards.

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