||Investment Promotion Services
One of the reasons why you should consider locating your operations in Thailand is the country’s liberal investment policies. The Thai Government has supported and will continue to support foreign investment. There are no restrictions on foreign currency remittances, no export requirements, no foreign equity restrictions in manufacturing sectors, and no local content requirements.
What can the BOI offer?
BOI provides tax and non-tax incentives for investors to help alleviate the costs of an international expansion and enhance their global competitiveness, which generally include the following:
- Corporate income tax exemption up to 8 years
- Additional 50 percent reduction of the corporate income tax for another 5 years
- Exemption or reduction of import duties on machinery and raw materials
- Double deduction of transportation, electricity, and water supply costs
- Additional 25 percent deduction of infrastructure construction / installation costs
What kinds of activities are eligible for BOI promotion?
- Permit to bring in foreign skilled workers and experts to work
- Permit to own land
- Permit to take out or remit money abroad in foreign currency
Currently, there are 7 categories covering over 300 activities in both manufacturing and services eligible for BOI investment promotion:
- Agriculture and agricultural products
- Mining, ceramics, and basic metals
- Light industry
- Metal products, machinery and transport equipment
- Electronics and electrical appliances
- Chemicals, paper and plastics
- Services and public utilities
For further information on activities in each category, please refer to List of Activities Eligible for Promotion
How are tax incentives granted?
Decentralization has been a major thrust of the BOI’s investment scheme for many years, with a view to accelerating development in disadvantaged regions. Thailand is divided, based upon economic factors, into three zones throughout Thailand. Each has its own different incentive package. Investment Promotion Zones are divided as follows:
Summary Table of BOI privileges by Investment Promotion Zones
Although tax incentives are generally based on investment location, some activities are considered priorities and granted maximum tax incentives (8-year tax holidays and exemption of import duties on machinery) regardless of location. Specific packages have been designed for key sectors, with a view to accelerating industrial cluster development.
Here are some examples of Priority Activities: Agriculture & Agro-based industries, R&D, Software, Molds & Dies, Biotechnology, Alternative energy, Medical devices, Hi-tech products, etc.
What are the BOI application procedures?
All related application forms can be downloaded online through Office of the Board of Investment’s website Click here
All application forms and related publications can be submitted to our Headquarters or through one of our overseas offices. For the flow diagram of procedures of applying for BOI promotion Click here