Board of Investment (BOI) Thailand: what incentives are available?

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The BOI was established as a government agency under the office of the Prime Minister carrying out the Investment Promotion Act (B.E. 2520; 1977, as amended) to promote certain types of highly sought-after foreign and domestic investment in Thailand. Today, the BOI can guarantee different incentives to an investor.

The BOI has discretionary authority to grant certain trade, taxation, employment, financial and other benefits.

boi

In this article, we would like to summarize what incentives can be obtained, in an ideal scenario, as a maximum:

  • Exemption of import duties on
    • Machinery
    • Raw or essential materials imported for use in production for export
    • Materials for R&D activities
  • Corporate income tax exemption for up to 13 years
  • Maximum 50% CIT reduction for up to 10 years (in case of no CIT exemption)
  • 50% CIT reduction for up to five years in the case of investments being located in the designated areas
  • Deduction of up to 70% of the invested capital from net profits derived within 10 years (ITA- Investment Tax Allowance)
  • Double deduction of public utilities costs (for investments located in the designated areas
  • 25% additional deduction of infrastructure construction and installation (for investments located in the designated areas)

Non-tax incentives are available at the BOI’s discretion and include such investment privileges as:

  • Foreign ownership of the Company
  • Control over Thai corporations
  • Land ownership
  • Expedited visas and work permits for foreign executives and technicians (and their families).

If you have any questions regarding the BOI application and its benefits, feel free to contact us at info@franklegaltax.com

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