The Board of Investment (BOI) of Thailand is one of the pinnacle organizations that focuses greatly on easing out the process of business registration and operations for global investors in Thailand. If you have been researching the global business ecosystem of Thailand for a long, you must have known about this by now. However, if you have just started on this, let us tell you for sure that there is a great benefit that foreign investors can gain from BOI Thailand. The non-exhaustive list of the benefits is as follows:
Investment Incentives with almost 100% deduction on corporate income tax of the investment value
Tax Incentives in the form of corporate income tax exemption for a period of up to 13 years from the year of incorporation
Land or property ownership permissions
Provision of up to 100% foreign ownership of Thai business
Higher level of freedom and authority to remit foreign currency and bring in foreign skilled workers in Thailand
Aren’t these privileges enough to encourage global investors to start a business in Thailand?
But you will be more pleased to know that there are various other additional incentives for foreign investors based on the industry in which they are planning to do business. For convenience, we have listed some of the primary industries that BOI Thailand prefers to promote (Click to get the details):
Firstly, you must know why BOI Thailand Promotions is Mandatory for Foreign Investors.
Henceforth, deciding upon the type of business you are planning to conduct, the following are the respective benefits associated with each:
Privileges from BOI Thailand for Businesses in Bio-Circular-Green Economy
BOI Thailand Benefits for Businesses in the Medical and Healthcare Industry
BOI Incentives for Startup Businesses in the Digital Economy
Apart from these, there are vivid sets of tax and non-tax incentives relevant to other sectors like agriculture and poultry, the electrical and electronics industry, manufacturing businesses, and the tourism industry. Subscribe to our newsletter on BOI Thailand Benefits to get the recent BOI updates on the respective industries and businesses.
Now you must be wondering why BOI Thailand is so keen on facilitating business registration and operations for foreign investors in Thailand. The primary reason is to promote the growth of foreign direct investment and take the nation forward in its target group of industries.
To determine its target industries and set of business activities, BOI Thailand revises its policies frequently with an investor-friendly approach. This article intends to share with you the latest updates on the BOI Thailand policies to promote foreign businesses and facilitate the same for global investors.
5 Key Agendas of BOI Thailand Advancing Towards Transformation and Development
Agenda 1: Green Transformation
This agenda endorses policy targets of Carbon Neutrality by 2050 and Net Zero Emission by 2065. Additionally, it supports carbon credit management.
Agenda 2: Development of Technology
This agenda aims to support 1,000 Innovation Driven Enterprises (IDES) with an annual revenue of 1 billion baht providing the following benefits:
Promote commercializing of research and innovations.
Encourage the establishment of R&D centers in Thailand.
Attract leading foreign incubators/VCs
Additionally, BOI Thailand supports startups involved in deep technology research in the target segment.
Agenda 3: Attract and Develop Talent
This agenda aims to make Thailand grow to be a regional talent hub. To facilitate the same, BOI Thailand plans to do the following:
Attract highly skilled professionals in the targeted industries to work in Thailand.
Support Human Resources Development in Thailand.
Agenda 4: Prioritize Cluster-based Investment
This agenda aims to decentralize investments and distribute growth based on local potentials across the country. To meet this target, BOI aims to develop industrial zones and stimulate employment in regions with high labor availability and low income per capita.
Agenda 5: Promote Ease of Investment
Through this agenda, BOI intends to position Thailand as the Trade & Investment Gateway for the ASEAN Group of Nations. To achieve this, BOI has all plans in place to streamline regulations and facilitate investors' services to attract more investment.
These 5 key agendas raise the need to identify the appropriate industries that can contribute strategically to the fulfillment of the goals.
5 Strategic Industries on BOI Radar to Drive Foreign Direct Investment in Thailand
Bio Circular Green or BCG Economy
Focus on this industry aims to place Thailand as ASEAN's "BCG Capital". To facilitate this business group, BOI Thailand plans to extend the following benefits to foreign investors:
Promote investments in Biocomplex, the Economic Corridors in the four regions.
Expand the community and society development measures to cover the community forest management and PM 2.5 reduction.
Automotive Industry with a special focus on Electric Vehicles
Thailand aims to develop itself as a Premier Global Automotive Manufacturing Center. To achieve this goal, BOI Thailand is all set to extend the following supports:
Promote a complete EV production ecosystem
Support the established automakers in transitioning to EVs and advanced technologies to reduce CO2 emissions.
Assist the traditional auto-part makers in transitioning to new technologies or industries.
Promote the management of used EV batteries.
Electronics Industry for Upstream and Smart Electronics
Thailand is gradually evolving as a Smart Electronics Manufacturing Hub in the ASEAN region. To establish this presence throughout the APAC regions, BOI Thailand aims the development of the Upstream Electronics Industry in Thailand.
To achieve this result, BOI Thailand facilitates promotions for investment in the entire supply chain of the electronics industry, including upstream, midstream, and downstream.
Digital & Creative Economy
In this segment, BOI Thailand aims to achieve the following goals:
Transforming into ASEAN's Digital and Creative Center.
Attracting investment in hyper-scale data centers and cloud services
Promote a fully integrated digital industry
Focus on promoting Thailand's high-potential creative industry.
Regional Headquarters & International Business Center
As a gateway to Southeast Asia, now is the perfect time to position Thailand as an International Business Hub. Focusing on this, BOI Thailand extends business facilitations and foreign investment promotions targeting the following:
Continuously attract more target companies to establish RHQs in Thailand.
Collaborate with related agencies in establishing a one-stop service for advising and facilitating the establishment of RHQs and expatriates living in Thailand.
Upgrade the HQ Biz Portal.
Now what should be our Step for BOI Thailand Promotions?
Now that you have the latest updates on the agenda and industries on which the Board of Investment of Thailand is focusing, the following things must have been clear:
Whether the business you are planning is eligible for BOI promotion or not.
Whether there is a need to modify your business pattern to fall in the promotion slab of BOI.
Whether the benefit BOI is committing to extend will be helpful for your business or not.
There may be many other “whethers” that might have changed or affirmed their perspectives in your mind. But, some more questions are still unanswered like the following:
Are these benefits applicable to all global investors and are you eligible to apply for BOI Thailand promotions?
What are the steps of getting a BOI Thailand Promotions Certificate?
What to do before and after registering your BOI Company in Thailand?
To get answers to such or more complicated questions, you must consult with a leading corporate law firm in Thailand with experience in BOI Company Registration.
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