BOI (Board of Investment)
We specialize in helping businesses apply for BOI benefits, providing guidance on securing incentives and support for tax exemptions and investment promotions in Thailand.
The Board of Investment (BOI) is a government agency under the Office of the Prime Minister. Its primary responsibility is to promote both domestic and international investments to support Thai businesses. The BOI focuses on encouraging investments that help restructure Thailand’s economy into a new economic model. The agency has set three key goals to achieve this economic transformation:
- Innovative: An economy driven by technology, innovation, and creativity.
- Competitive: An economy with high competitiveness, able to adapt quickly and foster strong growth.
- Inclusive: An economy that considers environmental and social sustainability, while creating opportunities and reducing inequality.
Project Approval Criteria
- Investment promotion is considered on a project-by-project basis. The project must involve new investments in machinery for the entire production line. Existing projects cannot apply for promotion.
- The project must fall within a business category that is eligible for promotion at the time of application and must meet the conditions specific to that category.
- The project must have a minimum investment of at least 1 million THB (excluding land costs and working capital).
- The project must use modern production methods or service processes.
- The project must have a value-added percentage of at least 20% of revenue (except for agricultural and food businesses, electronics and parts, and metal cutting, which must have a minimum value-added of 10%).
- The project must have a debt-to-equity ratio not exceeding 3:1 for new projects. For expansion projects, the suitability will be evaluated on a case-by-case basis.
- The project must have sufficient and effective measures to prevent and reduce environmental impacts. For projects that may cause environmental harm, the committee will consider the location and methods for managing pollution.
Tax Benefits under the Investment Promotion Act
- Exemption/reduction of import duties on machinery (Sections 28/29).
- Reduction of import duties on raw materials or necessary materials (Section 30).
- Exemption of import duties on items imported for research and development (Section 30/1).
- Exemption from corporate income tax and dividend tax (Sections 31, 31/1, and 34).
- 50% reduction in corporate income tax (Section 35(1)).
- Double deductions for transportation, electricity, and water bills (Section 35(2)).
- Deductions for installation or construction of facilities up to 25% of the investment (Section 35(3)).
- Exemption from import duties on raw materials or necessary materials for export production (Section 36).
Non-Tax Benefits
- Permission for foreign nationals to enter Thailand to explore investment opportunities (Section 24).
- Permission to bring in skilled workers and experts to work in promoted investment projects (Sections 25 and 26).
- Permission to own land (Section 27).
- Permission to remit foreign currency abroad (Section 37).
Foreign Shareholding Criteria
- For investment projects in businesses under Category 1 of the Foreign Business Act, at least 51% of the registered capital must be held by Thai nationals.
- For investment projects in businesses under Category 2 and Category 3 of the Foreign Business Act, foreign nationals may hold a majority or full shareholding, unless restricted by other laws.
- In special cases, the BOI may set specific foreign shareholding ratios for certain promoted businesses.
- The entry of foreign experts before receiving promotion (Section 24).
- Under the Investment Promotion Act B.E. 2520, foreign nationals may be allowed to enter Thailand to explore investment opportunities or work in projects under consideration for promotion, provided they hold a Non-Immigrant B or IB visa.
If you’re interested in receiving promotion from the BOI