BOI Promotion Criteria
Frequently Asked Questions
What are the requirements for BOI promotion?
There are two primary requirements for BOI promotion:
- The business activity must be eligible for BOI promotion, and the project must comply with the conditions of the promoted activity.
- The project must involve a new investment of at least THB 1 million, excluding land costs and working capital.
Additional criteria and conditions may also apply depending on the business activity and promotion measure.
For more information, please read our article: BOI Thailand Registration Requirements: Everything Investors Need to Know
What are the main BOI promotion criteria?
BOI projects are generally required to meet the following criteria:
- Minimum investment of THB 1 million (excluding land costs and working capital)
- Debt-to-equity ratio not exceeding 3:1
- Value added of at least 20% of revenue (subject to certain exceptions)
- New machinery is generally required. Imported used machinery is permitted if it is no more than 10 years old. Locally sourced used machinery is not allowed.
- Modern production processes or service operations
- Adequate environmental protection and impact mitigation measures
Can foreign companies apply for BOI promotion?
Yes. Foreign investors are eligible to apply for BOI promotion, and most promoted activities allow foreign ownership of up to 100%.
Can foreign investors own 100% of a BOI-promoted company?
Yes. Most BOI-promoted activities permit 100% foreign ownership. Any ownership restrictions are specifically stated in the conditions of the relevant promoted activity.
Can Used Machinery Be Used in a BOI Project? If So, How Does It Affect BOI Incentives?
The BOI does not permit the use of locally sourced used machinery. However, used machinery imported from overseas may be used if it is no more than 10 years old, subject to prior BOI approval. Different requirements may apply to certain promoted activities or promotion measures.
BOI Incentives for Used Machinery
- Imported used machinery is not eligible for import duty exemption.
- Imported used machinery that is more than 5 years old (but not over 10 years old) cannot be included in the investment amount used to calculate the corporate income tax exemption ceiling.
