The term "commencement of operations" as defined by the Office does not refer to the act of the recipient of investment promotion
starting to produce or sell goods or services. Rather, it signifies that the recipient has fully invested in accordance with the conditions specified in the
investment promotion certificate.
Thus, the recipient may begin production, sales, and utilize various benefits even before receiving approval to commence operations. However,
if they are unable to obtain the operation commencement approval by the specified deadline, the investment promotion certificate will be revoked,
and they will be required to pay back taxes along with penalties.
Guidelines for initial commencement of operations
Projects requesting approval to commence operations must have fully invested in the production or service process in accordance with the promoted capacity.
Additionally, the project must be able to maintain this production or service capacity and comply with all other important conditions as approved.
Commencement of operations in general cases.
- Condition of machinery
- Registered capital and payment of share value
- Shareholding ratio
- Types of products or services and production capacity
- Production or service processes
- Machinery installation layout
- Size of investment or personnel hiring
- Location of the factory or establishment
- Licenses from relevant authorities, such as a factory operation license (Form Ror Ngor. 4 / Gor Nor Or / Form Kor. 2) and a certificate for foreign business operations (Form T.7), etc.
- Other conditions specified in the investment promotion certificate, for example: Electricity production businesses must obtain a license allowing them to connect and synchronize with the electricity grid system, among other requirements.
Assessment of important (general) aspects at the commencement of operations.
Commencement of operations under efficiency improvement measures
- Condition of machinery
- Details of efficiency improvements that have been implemented
- Machinery installation layout according to efficiency improvement measures
- Summary of past exemptions and a copy of tax form P.N.D. 50 from the year the promotion certificate was issued to the current year
- Evidence showing results of performance based on various indicators
Assessment of important aspects according to efficiency improvement measures.
- The date of authorization to commence operations is the date on which all conditions have been fully met, or generally, it is the date specified for the commencement of operations in the investment promotion certificate.
Documents required for applying for an operation commencement approval
1. Application form for an operation commencement approval (F PM OP 01) or application form for operation commencement approval under efficiency improvement measures (F PM OP 19), along with a flowchart of the production or service process and the machinery installation layout.
2. A copy of the current shareholder register
3. A copy of the most recent annual financial statement
4. Certificate of company registration
5. A copy of the factory operation license or other mandatory permits from relevant authorities
6. For projects with specified tax exemption limits, as the total investment amount (excluding land costs and working capital) must be summarized up to the commencement of operations date, additional documents must be attached as follows:
- A copy of the income tax return (P.N.D. 50)
- Asset listing account
- Attached asset registry documents
7. Submit the application form for an operation commencement approval to the Investment Monitoring and Evaluation Division 1–2 of the Office of the Board of Investment or to the Investment Economic Centers 1–7.
Extension of the operational commencement deadline
- In cases where an extension for the importation of machinery is granted, the operational commencement deadline will be automatically extended by an additional six months. This request should be submitted through the eMT system (Electronic Machine Tracking System).
- In cases where an extension of the operational commencement deadline is required, an extension of one additional year will be allowed only once. Therefore, it is advisable to request this extension after having fully utilized the three extensions for machinery importation. This request should be submitted through the dedicated extension application system (e-Extension).
