A BOI Company is a Thai entity promoted by the Office of the Board of Investment which grants to investors tax and non-tax incentives. The Office of the Board of Investment of Thailand, established in 1997, is the government agency under the Office of the Prime Minister established with the purpose of enhancing and facilitate foreign investment by offering tax and non-tax incentives.

Incentives outline

Different incentives will be offered to applicants depending on the business sector, scale of business, R&D, location, ect.

Tax Incentives for BOI Company

  • Exemption/reduction of import duties on machinery.
  • Reduction of import duties for raw or essential materials.
  • Exemption of import duties on materials imported for R&D purposes.
  • Exemption of corporate income tax on the net profit and dividends derived from the promoted activity.
  • Exemption of corporate income tax on net profit and dividends derived from the promoted high technology and innovation activity.
  • A 50 percent reduction of the corporate income tax.
  • Double deduction from the costs of transportation, electricity, and water supply.
  • Additional 25 percent deduction of the cost of installation or construction of facilities.
  • Exemption of import duty on raw or essential materials imported for use in production for export.

Non-Tax Incentives for BOI Company

  • Permit to take out or remit money abroad in foreign currency.
  • Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities.
  • Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.
  • Permit to own land.

Activities eligible for BOI promotion

Activity based incentives and Merit based incentives

The BOI offers 2 kinds of incentives defined as activity-based incentives and merit-based incentives. The amount and type of tax incentives granted to a business depends on how the BOI classifies the activities. The criteria of granting activity-based incentives are based on the kind of activity the business undertakes and the amount of innovation and high technology implemented and incorporated in the business as classified by the BOI in the list below. 

A1 Knowledge-based activities focusing on R&D and design to enhance the country’s competitiveness.

A2 Infrastructure activities for the country’s development, activities using advanced technology to create value-added, with no or very few existing investments in Thailand.

A3 High technology activities which are important to the development of the country, with a few investments already existing in Thailand.

A4 Activities with lower technology than A1-A3 but which add value to domestic resources and strengthen the supply chain.

B1-B2 Supporting industry that does not use high technology, but is still important to the value chain. Activities which support the development of targeted technology and have cooperation according to the conditions presented by the Board including activities 5.6, 7.11, 7.13, 7.14, 7.15 and 7.1.Section 8: Technology and Innovation Development includes targeted core technology development such as development of biotechnology, nanotechnology, advanced materials technology and digital technology. Merit-based incentives, on the other hand, are granted to businesses that the BOI regards as contributing to the enhancement of Thailand’s competitiveness, that contribute to decentralization or promote the development of industrial zones. Additional incentives will be granted depending on which merits the project fulfils.

Merit of competitiveness Enhancement

  • 300% of the additional capital in Research, technology Development and Innovation: In-house, outsourced in Thailand or joint R&D with oversea institutes.
  • 100% of the additional capital in Donations to technology and human resource development funds, education institutes, specialize training centers, R&D institutes, or governmental agencies in the S&T field in Thailand as approved by the board.
  • 200% of additional capital in IP acquisition/licensing fees commercializing technology developed in Thailand.
  • 200% of additional capital in advanced technology training.
  • 200% of additional capital in development of local suppliers with at least 51% Thai shareholding in advanced technology training and technical assistance.
  • 200% of additional capital in product and packing design: In-house or outsourced in Thailand, as approved by the board.
Merit of decentralization

Projects located in 20 provinces with lowest per capita income—Kalasin, Chaiyaphum, Nakhon Phanom, Nan, Bueng Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa Ket, Sakhon Nakhon, Sa Kaew, Sukhothai, Surin, Nong Bua Lamphu, Ubon Ratchatani and Amnatcharoen (excluding border provinces in Southern Thailand and Special Economic Development Zones which have separate special incentive packages)— shall receive additional incentives. Special Economic Zones: 90 sub-districts in 23 districts of 10 provinces which are Chiang Rai, Nakhon Panom, Tak, Kanjanaburi, Nongkhai, Mukdahan, Sa Kaew, Trad, Songklah and Narathiwas.

Merit of Industrial Area Developments

Projects located within industrial estates or promoted industrial zones shall be granted one additional year of corporate income tax exemption.

The application Process

The BOI promotion application process consists of six steps, each taking place at a different department (The Board of Investment, Department of Business Development and One Start One Stop Investment Centre for Visas and Work Permits).

Step 1: Preparing the application for a BOI Company

We will assist you in preparing and filling in the application based on the information you share with us. It can be issued either in your name or the name of the company and consists of two parts:

  • Business plan – the business plan, a projection of expenses, clients, sales forecast, marketing strategy plan, employee plan, etc.
  • Project plan – The plan will be designed to tie into the promoted industry of your business and it will contain the work processes, the value chain, the added value, product/services development, hardware, software, machinery to be utilized in the production, ect.

2-4 weeks after which you will have to wait 1-2 weeks for the project presentation date.

Step 2: Submitting the application & scheduling BOI presentation.

Submission of completed application online and date scheduling for your project presentation to the BOI committee. The Board of Investment 1 day or less after which you will have to wait 1-2 weeks for the project presentation date.

Step 3: Presenting your idea at BOI

This is the opportunity to pitch your business project. After being interviewed by the officials, you we will receive the Board’s resolution in approximately 40 days. The Board of Investment 1 day for presentation

40 days for resolution

Step 4: Receiving resolution and company registration

After receiving a positive resolution from the BOI, businesses have generally six (6) months to register with the DBD. (Only companies registered in Thailand can be BOI promoted.) Department of Business Development, The Board of Investment 1-2 weeks

Step 5: Issuing the BOI certificate

Issuance of the BOI certificate is conditioned by the company completing its registration in Thailand and showing a proof of funds (At least 25% of the minimum capital requirement of 1M+ THB). The Board of Investment 1-2 weeks

Step 6: Visa and work permit

Securing visa and work permit for the foreign director and employees. One Start One Stop Investment Centre 1 day after the online formalities are completed

Step 7: Post-certificate compliance

Regular reporting to BOI 

Documentation required 

  1. Corporate documents i.e. Affidavit, Shareholder’s list, Memorandum of Association, Financial Statement (in case the company has already been established);
  2. Copy of passport or Thai identification card of director of the tentative company (in case the company has not yet established);
  3. Finances and Investment plan;
  4. Scope of business description;
  5. Type and size of business;
  6. Business processes;
  7. List of machinery, tool, equipment, computer and software which will be used for this project; including country of origin, quantity and value;
  8. Environment Protection Plan;
  9. Employment details; including position, number and nationality;
  10. List of major customers and business relations;
  11. Marketing plan;
  12. Operation plan, including building/operation site, estimated revenue;
  13. Estimated revenue and expense of the project for the first 3 years of operation;
  14. Merits of the project (if applicable);
  15. Business portfolio and business profile of the company and affiliates.