What is BOI?
BOI (Board of Investment), officially known as the Thailand Board of Investment, is a government agency responsible for promoting and supporting investment in machinery, equipment, technology, and human resources. Its objective is to encourage manufacturing and service activities that create added value for Thailand. Such investments can contribute to employment, the development of new skills and knowledge, economic growth, and increased trade and export activities.
BOI’s main tool for encouraging investment is the provision of investment incentives. These include both tax incentives and non-tax incentives designed to facilitate business operations. BOI is the only government agency in Thailand that provides investment incentives covering multiple aspects of business operations in this way, with the objective of attracting and encouraging investment in the country.
However, BOI incentives are not available to every type of business. BOI generally promotes businesses that are considered important to Thailand’s economic development, involve technology, have complex manufacturing or service processes, or require significant investment. BOI currently specifies approximately 400 eligible business activities for investment promotion and generally requires a minimum investment of THB 1 million. You can read more about BOI eligibility and investment criteria in our article: BOI Thailand Registration Requirements: Everything Investors Need to Know
Let’s take a closer look at what BOI does below.
What Incentives Does BOI Offer to Businesses?
BOI incentives can generally be divided into two main categories, as follows:
- Tax Incentives
- Corporate income tax exemption or reduction for 3–13 years
- Dividend tax exemption
- Exemption from import duties on machinery and raw materials
- Non-Tax Incentives
- Permission for foreign investors to hold a majority or up to 100% ownership of the company
- Special visa and work permit privileges for foreign employees
- Permission for foreign companies to own land
These incentives are among the key reasons why many companies apply for BOI promotion. Tax incentives can significantly reduce the cost of establishing and operating a business, while non-tax incentives help facilitate business operations in Thailand. The non-tax incentives are particularly valuable for foreign investors and international companies establishing or expanding their operations in Thailand.
Learn more about BOI incentives in our article: BOI Thailand Incentives: A Complete Guide
BOI incentives are intended to promote investment in manufacturing and service businesses. They are not intended for investments in shares or assets for capital gain.
What Is a BOI Certificate?
After a company receives investment promotion from BOI, it will be issued a certificate. A BOI Certificate serves as the official document confirming the investment promotion granted to the company based on its approved investment plan and manufacturing or service operations. The certificate specifies important details, including:
- The scope of the promoted business activity
- The incentives granted
- The requirements and details of the project that the company must comply with
After Receiving BOI Promotion, Are Other Licenses Still Required?
Yes. Receiving BOI promotion does not exempt a company from complying with other applicable laws and regulations. For example:
- An industrial factory may still be required to obtain a Factory License.
- Businesses operating in regulated industries, such as aviation or maritime transportation, may still need to obtain licenses from the relevant authorities.
BOI’s role is to provide investment incentives, including tax exemptions, business facilitation measures, and certain regulatory privileges. However, companies must still comply with other laws and obtain any licenses required for their specific business activities.
Apply for BOI Incentives for Your Business
Get professional advice from BOI specialists.
Contact us today for a free consultation.
