The Office of the Board of Investment is a government agency under the Office of the Prime Minister. Its main roles and responsibilities are to promote direct investment.
Incentives Under the Investment Promotion Act
In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted:
Tax Incentives
- Exemption/reduction of import duties on machinery (Section 28/29)
- Reduction of import duties for raw or essential materials (Section 30)
- Exemption of import duties on materials imported for R&D purposes (Section 30/1)
- Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31 and 34)
- A 50 percent reduction of the corporate income tax (Section 35(1))
- Double deduction from the costs of transportation, electricity and water supply (Section 35 (2))
- Additional 25 percent deduction of the cost of installation or construction of facilities (Section 35(3))
- Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)
Non-Tax Incentives
- Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities. (Section 24)
- Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities (Section 25 and 26)
- Permit to own land (Section 27)
- Permit to take out or remit money abroad in foreign currency (Section 37)
Seven-year Investment Promotion Strategy (2015 – 2022)
According to the Announcement of the Board of Investment No.2/2557 Policies and Criteria for Investment Promotion announced on December 3, 2014, which is enforced on BOI applications submitted from January 1, 2015, onward:
Vision
To promote valuable investment, both investment in Thailand and Thai overseas investment to enhance Thailand’s competitiveness, to overcome the “Middle Income Trap” and to achieve sustainable growth in accordance with the sufficiency economy philosophy.
Investment Promotion Policies
1. Promote investment that helps enhance national competitiveness by encouraging R&D, innovation, value creation in the agricultural, industrial and services sectors, SMEs, fair competition, and reduce social and economic disparity.
2. Promote activities that are environment-friendly, save energy or use alternative energy to drive balanced and sustainable growth.
3. Promote clusters to create investment concentration in accordance with regional potential and to strengthen value chains.
4. Promote investment in border provinces in Southern Thailand to help develop the local economy, which will support efforts to enhance security in the area.
5. Promote the special economic zones, especially in border areas, both inside and outside industrial estates, to create economic connectivity with neighboring countries and to prepare for entry into the ASEAN Economic Community (AEC).
6. Promote Thai overseas investment to enhance the competitiveness of Thai businesses and role of Thailand in the global economy.
Criteria for Project Approval (Please inquire us about specifics)
Criteria for Foreign Shareholding
The Board stipulates the following criteria for foreign shareholding in projects that apply for investment promotion:
1. For projects in activities under List One annexed to the Foreign Business Act, B.E. 2542, Thai nationals must hold shares totaling not less than 51% of the registered capital.
2. For projects in activities under List Two and List Three annexed to the Foreign Business Act, B.E. 2542, there are no equity restrictions for foreign investors except as specified in other laws.
3. The Board may set foreign shareholding limits for certain activities eligible for investment promotion, as deemed appropriate.
Investment Incentives Scheme
1. Activity-based Incentives- 8 years corporate income tax exemption
- Bio and Medical Industries
- Advanced Manufacturing Industries
- Basic and Supporting Industries
- Digital, Creative Industries, and High Value Services
2. Technology-based Incentives- 10 years corporate income tax exemption
- Biotechnology
- Nanotechnology
- Advanced Material Technology
- Digital Technology
3. Merit-based Incentives for Competitiveness Enhancement：
- Research & Development (R&D)
- Support academic / research institutes, or technology and human resource development fund
- IP licensing fee
- Advanced technology training
- Development of local suppliers
- Product and packaging design
4. Area-based Incentives
- EEC 3 Provinces
- SEZ 10 Provinces
- Southern Border Provinces
- 20 provinces with lowest income
- Industrial Estates/Zones
- Science and Technology Parks (TSP, Food Innopolis, Space Krenovation Park)
5. Agenda-based Incentives
- Investment Promotion Measures for Companies Listed in the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI)
- Efficiency Enhancement Measure
(Source：BOI official website）
About promotions, processes, industries, applications, etc., please inquire us any time in your convenience.
