Understanding the Thailand Board of Investment (BOI): Opportunities and Incentives for Investors
Khun Phattharaphon Yomthaisong
Legal Consultant
of ZICO Insource
Understanding the Thailand Board of Investment (BOI): Opportunities and Incentives for Investors
Khun Phattharaphon Yomthaisong
Legal Consultant
of ZICO Insource
The Thailand Board of Investment (BOI) is a government agency operating under the Office of the Prime Minister. Its primary role is to promote both domestic and foreign direct investment in line with national economic development goals. The BOI implements its mandate under the Investment Promotion Act (No. 2 B.E. 2534, No. 3 B.E. 2544, and No. 4 B.E. 2560), offering a variety of incentives to encourage investment in targeted sectors.
1. What is the BOI?
The BOI is dedicated to supporting and facilitating private sector investment in Thailand by offering tax and non-tax incentives. It serves as a strategic partner for investors, providing guidance and regulatory support to both Thai and foreign entities seeking to establish or expand operations in the country.
2. BOI Incentives
The BOI offers two primary categories of investment incentives:
Tax Incentives
- Exemption or reduction of import duties on machinery
- Reduction of import duties on raw materials and essential components
- Exemption of import duties on materials for research and development (R&D)
- Corporate income tax exemption on net profit and dividends from promoted activities
- 50% reduction in corporate income tax for a specific period
- Double deduction of costs related to transportation, electricity, and water supply
- Additional 25% deduction for infrastructure installation or construction costs
- Exemption of import duties on raw materials used in production for export
Non-Tax Incentives
- Permission for foreign nationals to enter Thailand for the purpose of studying investment opportunities
- Permission to bring skilled workers and experts into the country to work in BOI-promoted projects
- Right to own land for business operations
- Permission to remit foreign currency abroad
Additional Incentives
In addition to the standard incentives, the BOI offers enhanced benefits for projects that meet specific development goals, including:
- Measures for Competitiveness Enhancement: Additional incentives for investment in technology, innovation, human resource development, and capacity-building for local businesses.
- Incentives for Human Capital Development: Support for companies establishing institutions to develop highly skilled professionals, available for both new and existing projects.
- Area-Based Promotion: Extra incentives for projects located in:
- The 20 provinces with the lowest per capita income
- Promoted Industrial Estates or Zones
- Special Economic Zones (SEZs) across the four regions (NEC, NeEC, CWEC, SEC)
- Border provinces in Southern Thailand
- Model Cities in the Southern Border Provinces
- Eastern Economic Corridor (EEC)
3. The BOI promotes a wide range of industries, including:
- Agricultural and Food Industries, Biotechnology Industry, Medical Industry, etc.
- Machine and Automation System Industries, Automotive Industry, Defense Industry, etc.
- Mineral Industry, Materials Industry, etc.
- Digital Industry, Tourism Industry, Logistics Industry, etc.
To streamline the promotion process, the BOI has divided its operations into four specialized divisions:
- Division 1– Agricultural, Food, Biotechnology, and Medical Industries
- Division 2– Advanced Manufacturing Industries
- Division 3– Basic and Supporting Industries
- Division 4– Digital, Creative Industries, and High-Value Services
4. Who Can Apply?
Both Thai and foreign individuals or juristic persons may apply for BOI promotion. Applicants must demonstrate the project’s potential to contribute to Thailand’s economy through technology transfer, employment creation, or environmental sustainability. While most projects have no minimum capital requirement, specific categories may have unique financial or technical conditions.
5. How to Apply
The BOI application process involves the following steps:
- Online Submission
Applications must be submitted via the BOI’s e-Investment platform: https://www.boi.go.th/en/index/
- Interview & Clarification
After submission, the BOI will arrange a meeting to discuss the project in detail and request any necessary documentation.
- Approval Process
The BOI evaluates applications based on economic viability, technology utilization, and alignment with national development strategies. Decisions are generally made within 40 to 90 working days.
- Issuance of Promotion Certificate
Once approved, applicants must register a legal entity in Thailand and meet the prescribed conditions to receive the promotion certificate.
- Project Implementation & Reporting
Approved projects must commence operations within a specified period and submit periodic progress reports to the BOI.
Final Thoughts
The BOI serves as a vital partner for investors seeking to leverage Thailand’s strategic location, skilled workforce, and investor-friendly policies. With its comprehensive range of incentives, streamlined procedures, and strong government support, the BOI offers an ideal environment for sustainable business growth.
To ensure a smooth application process and fully capitalize on the benefits available under the BOI investment promotion scheme, investors are encouraged to seek guidance from experienced legal or business advisors. For tailored support, ZICO Insource (Thailand) Co., Ltd. stands ready to provide expert advice and comprehensive assistance throughout every stage of the investment journey.
