How to Obtain Incentives from the Thailand Board of Investment (BOI)

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The Thailand Board of Investment (BOI)

The Thailand Board of Investment (BOI) is a leading government organization aimed at stimulating investments in Thailand.

The BOI offers various tax and non-tax incentives and preferences to Thai and foreign companies in accordance with the Investment Promotion Act.

BOI Benefits

Tax Incentives

Companies certified by the BOI can be eligible for corporate income tax exemption for up to 13 years, full or partial exemption from import duties on equipment or raw materials, and reduced taxes on dividends paid to shareholders. Additional tax incentives include deductions for transportation, electricity, water, and costs of establishing project infrastructure.

Non-Tax Incentives

Non-tax incentives include 100% foreign ownership of the company, and the opportunity for foreign companies to own land. These incentives also allow for the recruitment of foreign qualified professionals without the need to hire four Thai employees for each foreigner. Additionally, the BOI simplifies the process of obtaining non-immigrant visas and work permits through the “One-stop Visa” service.

Incentive Groups

The BOI divides the incentives into groups as follows:

Group A: High-technology enterprises

Exemption from corporate income tax for up to 13 years;
Customs duty benefits on equipment and raw materials;
Other non-tax incentives.

Within Group A, there are subgroups:

Group A 1 +

Exemption from corporate income tax for 10-13 years, without limitation on the amount of actual investment
Exemption from customs duties on equipment
Exemption from customs duties on raw materials or basic materials used in the production of export goods for 1 year, which can be extended if the BOI deems it appropriate
Non-tax incentives

Group A 1

Exemption from corporate income tax for 8 years, without limitation on the amount of exemption
Exemption from customs duties on equipment
Exemption from customs duties on raw materials or basic materials used in the production of export goods for 1 year, which can be extended if the BOI deems it appropriate
Non-tax incentives

Group A 2

Exemption from corporate income tax for 8 years, at 100% of the investment amount, excluding the cost of land and working capital
Exemption from customs duties on equipment
Exemption from customs duties on raw materials or basic materials used in the production of export goods for 1 year, which can be extended if the BOI deems it appropriate
Non-tax incentives

Group A 3

Exemption from corporate income tax for 5 years, at 100% of the investment amount, excluding the cost of land and working capital
Exemption from customs duties on equipment
Exemption from customs duties on raw materials or basic materials used in the production of export goods for 1 year, which can be extended if the BOI deems it appropriate
Non-tax incentives

Group A 4

Exemption from corporate income tax for 3 years, at 100% of the investment amount, excluding the cost of land and working capital
Exemption from customs duties on equipment
Exemption from customs duties on raw materials or basic materials used in the production of export goods for 1 year, which can be extended if the BOI deems it appropriate
Non-tax incentives

Group B: Enterprises with less complex technology receive exemptions from customs duties on equipment and raw materials, as well as other non-tax incentives:

Exemption from customs duties on equipment
Exemption from customs duties on raw materials or basic materials used in the production of export goods for 1 year, which can be extended if the BOI deems it appropriate
Non-tax incentives

BOI Incentives Overview

Tax Incentives	Non-Tax Incentives
Full or partial exemption from import customs duties on equipment, raw materials, and materials	100% foreign-owned company
Full or partial exemption from corporate income tax and dividends	Land ownership
Double deduction of expenses for transportation, electricity, and water	Entry into Thailand to explore investment opportunities
An additional 25% deduction of expenses for installation or construction of facilities	Simplified employment of foreign specialists
	Foreign currency fund repatriation

BOI Incentives

Supported industries

The BOI supports projects in the following industries:

Agriculture, food, and biotechnology
Medical industry
Mechanical engineering and vehicles
Electrical appliances and electronics
Metals and materials industry
Chemical and petrochemical industry
Utilities
Digital industry
Creative industry
High-value services

BOI Priorities

Investors can also assess whether their projects meet the following BOI priorities:

Restructuring the industry by strengthening existing sectors, creating new industrial bases with potential in Thailand, and strengthening the supply chain;
Accelerating the transition to a “smart” and sustainable industry through new investments and encouraging existing entrepreneurs;
Promoting Thailand as an international business hub and regional trade and investment center;
Strengthening small and medium-sized enterprises (SMEs) and startups and developing their global connections;
Encouraging investments based on territorial potential for inclusive growth;
Encouraging the participation of supported enterprises in public and social development;
Promoting Thai investments abroad to expand business opportunities and enhance Thailand’s role in the global economy.

As a general rule, projects with an investment cost of one million baht, excluding working capital and land costs, are eligible for BOI incentives.

The added value must be at least 20% of the revenue (10% for projects in agriculture, electronics and components, and rolled steel).

Other requirements and criteria may also apply depending on the industry and specific features of the project.

Seven Steps to Successfully Apply for BOI Incentives

Step 1. Application Submission

Application forms can be obtained in person at the BOI headquarters in Bangkok or through the BOI’s online platform.

Typically, the information required by the BOI includes:

The total amount of registered capital and how the company will use the investments in its operations
Information about the company’s project
Data on employees, including the number of foreign and Thai employees the company plans to hire
Information about the qualifications and experience of the company’s management
The company’s projected revenues and expenses for the first three years

Step 2. Project Evaluation

Within 10 working days after submitting the application, an interview date should be scheduled with BOI staff, where you need to present the project and answer questions.

Sometimes, depending on the business category, a second interview with relevant government authorities may be required.

After the interview(s), the BOI will review the application and assess the business project. Sometimes, the BOI may request additional information from the applying company.

Step 3. Project Approval

The project must be approved or rejected by the BOI within 40-90 days from the date of application receipt. The timeframe depends on the size of the investments:

Projects with investments up to 200 million baht – within 40 working days
Projects with investments from 200 million to 2 billion baht – within 60 working days
Projects with investments over 2 billion baht – within 90 working days

Step 4. Company Registration

To obtain a BOI certificate, the applying company must establish a Thai company within six months after the approval of the application.

Certain documents must be submitted to the Board of Investment, including:

BOI certificate application
Company registration certificate
Articles of association
Shareholder list
Investment certificate from a Thai bank or confirmation of funds transfer from abroad
Technology transfer agreement, franchise agreement, and/or joint venture agreement
Form including all staff requirements

Step 5. BOI Certificate

The BOI will issue an investment promotion certificate within 10 working days after the company submits all the necessary documents and completes registration in Thailand. The certificate specifies conditions that the company must comply with.

It 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 6. Visas and Work Permits

After obtaining the BOI promotion certificate, the company must register the business in the e-expert system. This must be done before hiring any foreign employees. After approval, foreign candidates can apply for work permits and visas as part of the BOI’s “one-stop” process.

Step 7. Reporting to BOI and Compliance

After the company receives the BOI promotion certificate, it must ensure compliance with all BOI rules. This includes regular reporting to the BOI within the following timeframes:

In the case of full or partial exemption from taxes and duties — within 30 months
In the case of construction, factory building, including the installation of all machinery and equipment — within 36 months

The company must apply to the BOI for permission to suspend these operations. Additionally, the BOI must give written permission if the company wants to mortgage, sell, lease, or transfer equipment imported with full or partial exemption from duties, or if the company wants to use the equipment for unapproved purposes.

Companies receiving BOI incentives must comply with Thai accounting and reporting rules. This includes compliance with reporting requirements for the Social Security Fund, withholding tax, value-added tax, and annual audit.

If you have any questions about how to obtain BOI incentives, please email me, or use the form below.