BOI Thailand Incentives: A Complete Guide

What Incentives Does BOI Offer to Your Business?

BOI incentives are divided into two categories:

1. Tax Incentives
2. Non-Tax Incentives

Tax Incentives

• Corporate Income Tax Exemption (Section 31 of Investment Promotion Act)
  Eligible projects may receive a 100% corporate income tax exemption for 3–13 years, depending on the promoted activity. There are two types of tax exemption:
  • Unlimited exemption – no cap on the amount of income exempted.
  • Capped exemption – the total tax exemption is limited based primarily on the project’s investment in machinery, equipment, and building construction.
• 50% Corporate Income Tax Reduction (Section 35 Paragraph 1)
  BOI may grant an additional 50% reduction in corporate income tax for up to 5 years for projects located in special investment zones or those undertaking additional activities such as Thai workforce development, research, or technology and innovation development. This incentive becomes available after the corporate income tax exemption period ends.
• Dividend Tax Exemption (Section 34)
  Projects that receive corporate income tax exemption are also eligible for a 10% dividend tax exemption during the same period.
• Import Duty Exemption on Machinery (Section 28)
  Import duties are exempted on new machinery imported for use in the promoted project. This incentive does not apply to used machinery imported from overseas.
• Import Duty Exemption on Raw Materials (Section 36)
  Raw materials imported for manufacturing products for export are exempt from import duties. This incentive also covers materials imported for research and development purposes.
• Double Deduction of Transportation, Electricity, and Water Costs (Section 35 Paragraphs 2 and 3)
  Eligible projects may receive double deduction of transportation, electricity, and water costs for 10 years, and, an additional deduction equal to 25% of infrastructure construction costs.
  These incentives are generally available only to projects located in certain low-income provinces designated by BOI.

Non-Tax Incentives

• Foreign Majority or 100% Ownership (In accordance with Policies and Criteria for Investment Promotion)
  Most BOI-promoted activities allow foreign investors to hold a majority stake or even 100% foreign ownership, subject to certain exceptions.
• Temporary Visa and Work Permit for Investment Feasibility Studies (Section 24)
  Foreign investors and executives who need to explore investment opportunities in Thailand before receiving BOI promotion may apply for temporary visas and work permits under this provision.
• Special Visa and Work Permit Privileges (Sections 25 and 26)
  After receiving BOI promotion, foreign employees may obtain visas and work permits with simplified requirements, including exemptions from:
  • The requirement to employ four Thai employees per foreign employee; and
  • The requirement to maintain THB 2 million registered capital per foreign employee.
• Land Ownership Rights for Foreign-Owned Companies (Section 27)
  Foreign-majority or wholly foreign-owned BOI-promoted companies may own land for conducting their promoted business activities.
• Permission to Remit Foreign Currency Abroad (Section 37)
  BOI-promoted companies with foreign shareholding are permitted to transfer foreign currency into and out of Thailand, facilitating international business operations and capital movement.

Learn more on the BOI website: Overview of BOI Incentives.

How Does BOI Determine Incentives?

BOI grants incentives based on the specific business activity being promoted. Each promoted activity is assigned to one of the following categories:

• Group A
  Projects in Group A receive corporate income tax exemption benefits.
  • A1+: 10-year corporate income tax exemption (unlimited)
  • A1: 8-year corporate income tax exemption (unlimited)
  • A2: 8-year corporate income tax exemption (capped)
  • A3: 5-year corporate income tax exemption (capped)
  • A4: 3-year corporate income tax exemption (capped)
• Group B
  Projects in Group B do not receive corporate income tax exemption benefits.

All groups generally receive the same non-tax incentives and other tax incentives, although certain promoted activities may be subject to additional conditions or restrictions.

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