What is the Thailand Board of Investment (BOI)?
The Thailand Board of Investment (BOI) is a government agency that promotes investments in Thailand by offering tax and non-tax incentives to both local and foreign businesses. These benefits aim to boost business growth and economic development in Thailand.
Overview of BOI Incentives
The BOI offers various tax exemptions, such as corporate income tax and import duty exemptions, along with non-tax benefits like 100% foreign ownership, land ownership rights, and streamlined visa and work permit processes.
Tax Incentives
- Corporate Income Tax Exemption: Companies can receive up to 13 years of corporate income tax exemption, depending on the type of business activity and its location.
- Import Duty Exemption: Full or partial exemptions on import duties for machinery, raw materials, and essential goods used in production.
- Tax Deductions: Additional deductions for infrastructure investments, transportation, electricity, and water costs to help reduce operational expenses.
Non-Tax Incentives
- 100% Foreign Ownership: BOI-promoted companies can be fully foreign-owned, bypassing the standard 49% foreign ownership limit in Thailand.
- Land Ownership: BOI companies can own land for office and residential use, with limits. See the section on Land Ownership for more details.
- Streamlined Visa and Work Permit Processes: The BOI’s One-Stop Service Center simplifies visa and work permit applications for foreign professionals.
- No Foreign Employee Quotas: BOI companies are exempt from the usual requirement of hiring four Thai employees for every foreign employee, providing greater staffing flexibility.
BOI Incentives Overview
| Tax Incentives | Non-Tax Incentives |
| Full or partial exemption from import duties on equipment and raw materials | 100% foreign ownership |
| Full or partial exemption from corporate income tax and dividends | Land ownership rights |
| Double deduction on transportation, electricity, and water costs | Streamlined visa and work permit processes |
| 25% additional deduction on installation or construction costs | Easier hiring of foreign specialists |
| Repatriation of foreign currency funds | Entry into Thailand to explore investment opportunities |
Other Incentives Offered by the BOI
In addition to the main incentives, the BOI offers extra benefits for projects that focus on research and development (R&D), training, and technology transfer. These merit-based incentives can offer extended tax exemptions and other benefits, depending on the level of investment.
Competitiveness Enhancement
- Support for R&D and advanced technology training.
- Incentives for local supplier development and product design.
- Financial benefits for IP licensing and partnerships with academic institutions.
Area-Based Incentives
Special benefits are provided for businesses in key economic areas, such as:
- Eastern Economic Corridor (EEC) and Special Economic Zones (SEZ).
- Provinces with low income or specific development needs.
- Industrial estates and technology parks.
Agenda-Based Incentives
These incentives are focused on:
- Economic recovery, smart industries, and business relocation.
- Support for skilled professionals and key industries like automotive.
For detailed information, visit the official BOI website.
Land Ownership for BOI-Promoted Companies
Under Section 27 of the Investment Promotion Act B.E. 2520, BOI-promoted foreign companies are permitted to own land for specific business purposes, a significant advantage over the usual restrictions on foreign land ownership in Thailand.
These guidelines are further detailed in BOI Announcement No. 6/2565 (August 8, 2022), which outlines the criteria for land ownership:
- Eligibility:
- The company must have paid-up registered capital of at least THB 50 million.
- Land Limits:
- Up to 5 rai (approximately 0.8 hectares or 8,000 square meters) for office use.
- Up to 10 rai (approximately 1.6 hectares or 16,000 square meters) for executive or expert residences.
- Up to 20 rai (approximately 3.2 hectares or 32,000 square meters) for worker residences.
- The land can be located separately from the business premises.
- Conditions:
- The land must be used solely for purposes approved under the BOI promotion.
- It must be disposed of within one year after the company’s BOI-promoted status ends.
Supported Industries
BOI promotes investment across a range of industries, organized into four main divisions, with 10 key industry categories within them.
The four divisions are:
- Agriculture, Food, Biotechnology, and Medical Industries
- Machinery, Automotive, Electrical Appliances, and Electronics
- Metal, Material, Chemical and Petrochemical Industries, and Public Utilities
- Digital, Creative Industries, and High-Value Services
These divisions are responsible for promoting the following 10 key industry sections (categories):
- Agriculture, Food, and Biotechnology
- Medical Industry
- Machinery and Vehicles Industry
- Electrical Appliances and Electronics industry
- Metal and Material Industry
- Chemical and Petrochemical Industry
- Public Utilities
- Digital Industry
- Creative Industry
- High-Value Services
Each industry section contains specific eligible activities, which must meet certain criteria for BOI promotion. These criteria may include minimum investment requirements, technology use, or contributions to the Thai economy through innovation, knowledge transfer, or sustainability.
For a detailed breakdown of eligible activities within each category, you can visit the BOI’s List of Eligible Activities or download the complete BOI Investment Promotion Guide.
Step-by-Step Guide to BOI Promotion Application
Step 1: Feasibility Study
Check if your business fits BOI’s eligibility and investment criteria. The process requires resources and compliance, so make sure the benefits are worth it. Ensure your company can meet long-term requirements. Getting expert help early on avoids mistakes and ensures your application meets BOI standards. Understand the regulations before moving forward.
Step 2: Application Submission
When submitting your BOI application, you will need to provide detailed project information through their online platform. Key components include:
- Registered Capital: Allocation and planned usage.
- Project Overview: Technology, processes, and operational details.
- Employee Information: Planned Thai and foreign employees, their roles, and salaries.
- Training and Technology Transfer: Plans for developing Thai staff skills.
- Financial Plan: Revenue forecasts and funding sources.
- Market and Production: Expected sales and production capacity.
Each section must adhere to BOI requirements, ensuring a smooth application process.
Step 3: Project Evaluation
Once you submit the application, the BOI typically schedules an interview within 10 working days. During the interview, you will present your project and respond to any questions. Additional interviews with other authorities might be necessary, depending on your business category. The BOI may request more documents during the evaluation.
Step 4: Project Approval
The BOI’s decision on approval usually takes:
- 40 working days for projects under 200M THB
- 60 working days for projects between 200M and 2B THB
- 90 working days for projects over 2B THB
Step 5: Company Registration
Upon approval, you must establish your company within six months. Required documents include:
- Company registration certificate
- Articles of association
- Shareholder list
- Proof of foreign investment (confirmation of funds transfer from abroad)
- BOI certificate application
Step 6: BOI Certificate
The BOI issues the certificate within 10 working days once all documents are provided. This certificate outlines compliance conditions and benefits. t is important to note that funds for the company’s registered capital from foreign investors must come from abroad. The BOI will require corresponding documents.
Step 7: Visas and Work Permits
After receiving the BOI certificate, the company must register in the e-expert system before hiring foreign employees. Foreign workers can apply for visas and work permits via the BOI’s one-stop service.
Step 8: Reporting to BOI and Compliance
After receiving the BOI promotion certificate, companies must adhere to multiple reporting obligations. This includes regular updates on project progress, utilization of benefits, and compliance with conditions set forth in the promotion certificate. Key requirements include:
- Annual progress and performance reports, submitted in February and July via the BOI e-Monitoring system.
- Approval of full operation startup within 36 months.
- Compliance with additional standards such as ISO and environmental regulations.
Failure to comply may lead to penalties or revocation of the promotion certificate.
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Need help with your BOI application? Our team offers full support, from evaluating your business’s eligibility to preparing documents and ensuring compliance. We simplify the process and help you avoid common mistakes. Contact us to get started with expert guidance tailored to your needs.