The Board of Investment (BOI) of Thailand is always keen to facilitate the process of business registration and continuity for investors in the kingdom. Irrespective of nationality, the apex body governing the business ecosystem of Thailand, is always focused on attracting investors, be it foreigners or Thai to contribute to the GDP of Thailand.
Most of our clients or readers believe that BOI facilitates the business registration process in Thailand for foreigners only. This is a myth!
BOI Thailand values business ideas and intentions with equal weightage without discriminating on the grounds of nationality, as long as the business is legal. Furthermore, the Board also prioritizes the launch of innovative projects with special privileges.
Let’s bust another myth! It’s true that BOI Thailand promotes new businesses, but do note that it never overlooks the existing ones. This recent announcement of BOI Thailand proves the point aptly.
On February 7, 2024, the Board of Investment (BOI) of Thailand released various investment incentive measures for companies that are already operating in Thailand. With the motive of social, local, and economic development, BOI Thailand announced certain programs for existing businesses.
Social and Local Development (BOI Announcement No. 1/2567)
To address the PM2.5 problem and encourage social, local, and environmental progress, the BOI offers a corporate income tax (CIT) exemption of up to 200% of the investment capital (excluding land and working capital costs). This measure aims to alleviate PM2.5 pollution and promote sustainable development.
Eligibility Requirements for BOI Incentive:
- The project must make a minimum investment of 5 million THB, excluding land and working capital costs, to support local organizations.
- To boost competitiveness, the project must have a strategy for working together with local organizations.
Retention and Expansion Program (BOI Announcement No. 2/2567)
Within the past 15 years from 2009 to 2023, existing promoted individuals or businesses with at least three promoted investment projects under the same juristic person, with a combined investment value of THB 10 billion (excluding land and working capital costs) at the project approval stage, are eligible for BOI incentives to encourage ongoing investment in Thailand.
Eligible business expansion projects requiring an investment of at least THB 500 million will receive incentives, including an additional three-year CIT exemption for projects in Groups A1+, which can last up to 13 years, and up to eight years for projects in Groups A3, A4, and B.
Relocation Program (BOI Announcement No. 3/2567)
Intending to attract integrated business entities, the Board of Investment (BOI) offers incentives to companies that establish their manufacturing operations, regional headquarters, and research and development facilities all within Thailand.
Incentives for Manufacturing Projects in Thailand
1. Additional three-year Corporate Income Tax (CIT) exemption on the net profit from investment in manufacturing activities for applicants of such projects operating regional headquarters businesses in Thailand. This exemption can be claimed for a total of eight years.
2. Additional five-year CIT exemption on the net profit from investment in manufacturing activities for applicants of such projects that operate regional headquarters businesses and establish an R&D center in Thailand. This exemption can also be claimed for a total of eight years.
Investment Stimulation Measure for Economic Recovery (BOI Announcement No. 4/2567)
To stimulate large-scale investments in specified sectors and accelerate Thailand's economic recovery, the Board of Investment (BOI) offers an additional 50% corporate income tax (CIT) reduction on net profits generated from investments in Groups A1, A2, A3, and A4 for five years after the end of the CIT exemption period.
To qualify, projects must have an actual investment of at least 1 billion Thai baht (excluding land and working capital costs) within 12 months of receiving the investment promotion certificate.
The Bottomline
Although these BOI announcements appear to be focusing only on existing projects, yet, if your new project holds the potential to support the social, local, and economic development of Thailand, it will also be eligible for various BOI incentives. Any business idea that holds the following values will be eligible for BOI Promotions in Thailand:
- You or your business has a plan to contribute to local employment in Thailand.
- Your company has the potential to significantly contribute to the Thai economy's growth.
- Your business deals in or executes innovative and creative projects that can add value to the existing Thai ecosystem.
- Your project seeks the involvement of highly skilled workers, Thai or foreigners, to generate the expected and elite output.
With time, BOI keeps on enhancing its promotion policies to extend greater support to foreign investors and businesses. However, as of 2024, the following industries assure great return on investment with a strong probability of obtaining BOI Thailand promotion:
- Starting a Manufacturing Company in Thailand
- Incorporate a Food Production Plant in Thailand
- Getting Involved in the Future of the Food Industry in Thailand
- Start a Food Business of any type in Thailand
- Setting up E-commerce Business in Thailand
Please note that BOI Promotions for Foreign Investors in Thailand are not restricted to the above businesses only. You can apply your unique business idea at any time and start your business in Thailand. To apply for BOI Thailand Promotions, you will need local support to have the perfect and accurate answer to the following questions:
- 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.
For direct support, feel free to email us at officer@konradlegal.com.
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