Quick Answer
The Thailand Board of Investment (BOI) works by evaluating proposed business projects against its investment promotion criteria, and, if eligible, granting promotion certificates that unlock a package of tax benefits (e.g., corporate income tax exemption) and non‑tax benefits (e.g., permission for up to 100 % foreign ownership and land ownership rights).
Eligible industries include advanced manufacturing, technology, innovation, and high‑value services, among others. Firms must prepare detailed applications aligned with BOI policy, and once approved, enjoy preferential treatment compared with standard Foreign Business Act restrictions.
What Is the Thailand Board of Investment (BOI)?
The Thailand Board of Investment (BOI) is a government agency under the Office of the Prime Minister responsible for attracting and promoting investment that aligns with Thailand’s economic development goals. It establishes policies under the Investment Promotion Act, aiming to increase competitiveness, foster innovation, and support balanced economic growth.
The BOI’s mission includes:
- Encouraging foreign direct investment (FDI) into Thailand
- Supporting domestic firms to expand the economy
- Offering incentives that make Thailand a more attractive base for business activities
- Facilitating investor services such as information and regulatory guidance
How the BOI Incentive System Works
1. Investment Promotion Criteria
To qualify for BOI promotion, a company must operate in one of the promoted sectors and meet criteria such as minimum investment amounts and technological or value‑added thresholds.
2. Application Review
Investors prepare a detailed application, including business plans, financial projections, and legal documentation. The BOI evaluates whether the project supports national priorities such as innovation, sustainability, and competitiveness.
3. Promotion Certificate
If approved, the company receives a promotion certificate detailing which incentives it can access, tax exemptions, import duty relief, and non‑tax privileges.
Tax and Non‑Tax Incentives Explained
Tax Incentives
Depending on the classification of the business activity, the BOI can grant:
- Corporate income tax (CIT) exemption for several years (often 3–13 years)
- Import duty exemptions on machinery and raw materials
- Additional tax deductions for electricity, transportation, and installation costs
Non‑Tax Incentives
Non‑tax incentives aim to support operational flexibility and foreign investment:
- Up to 100 % foreign ownership rights for BOI‑promoted businesses
- Land ownership rights for business operations
- Streamlined visa and work permit processes for foreign employees
- Repatriation of profits and foreign currency funds without restrictions
How the BOI Supports Foreign Companies
For foreign companies, the BOI is especially important because it can override certain restrictions under the standard Foreign Business Act, which normally limits foreign ownership in many sectors. Through BOI promotion, foreign firms can:
- Own a majority or 100 % of the promoted project
- Hire skilled foreign workers with fewer quotas
- Enter strategic industries that would otherwise require Thai partners
Step-by-Step: How to Apply for BOI Promotion
- Check eligibility: Ensure your business falls under a promoted activity category.
- Prepare your application: Include a detailed business plan, financials, and project justification.
- Submit to the BOI: Online or through a physical submission to the relevant regional BOI office.
- BOI review: The agency will evaluate alignment with national policies and issue questions if needed.
- Receive promotion certificate: If successful, the company is granted the rights to access incentives.
- Maintain compliance: BOI-promoted companies must comply with reporting and operational obligations to retain benefits.
Common Mistakes When Applying for BOI Promotion
While the process is clearly defined, many applicants make errors that delay approval or reduce the benefits they receive. Here are frequent pitfalls:
- Submitting incomplete or inconsistent documentation
- Applying under the wrong activity code or industry group
- Failing to demonstrate sufficient technological value-add or innovation
- Not anticipating post-promotion reporting requirements
- Overlooking employment quotas or operational restrictions
Working with an experienced legal advisor helps avoid these mistakes and ensures your application is optimized from the start.
Conclusion
The Thailand Board of Investment (BOI) plays a pivotal role in shaping Thailand’s investment landscape by offering a structured set of incentives designed to attract and retain both foreign and domestic investors. Through its selective promotion system, companies aligning with Thailand’s economic priorities can benefit from significant tax breaks, non‑tax privileges, and operational freedoms that go beyond standard business regulations.
Looking to benefit from BOI incentives for your Thailand investment?
Contact Herrera & Partners for expert guidance on eligibility, application, and compliance throughout the BOI process.
FAQ
What is the main purpose of the BOI?
The BOI’s purpose is to encourage investment in Thailand by offering a blend of tax and non‑tax incentives to eligible projects.
Who can apply for BOI incentives?
Both foreign and Thai companies can apply for BOI promotion if their business activities align with the BOI’s targeted sectors.
How long can tax exemptions last?
Depending on the activity category, corporate income tax exemptions can last up to 13 years.
Are foreign employees included in the BOI benefits?
Yes, foreign employees of BOI‑promoted companies can receive streamlined visa and work permit procedures.
Does BOI evaluation consider sustainable and innovative projects?
Yes, the BOI emphasizes investment in sectors that promote innovation, competitiveness, and sustainabl
What kinds of incentives does the BOI offer?
The BOI offers both tax incentives (corporate tax exemptions for up to 13 years, import duty exemptions on machinery and materials) and non‑tax incentives (foreign ownership rights, land ownership permissions, and easier work permit/visa access).
Who qualifies for BOI promotion?
Both foreign and Thai companies can qualify, provided their business activity aligns with the BOI’s targeted sectors and they meet criteria like minimum capital investment thresholds.
Does BOI promotion let foreign companies own 100 % of a Thai company?
Yes, companies promoted by the BOI may receive rights to up to 100 % foreign ownership for the promoted project, bypassing standard foreign ownership restrictions imposed by the Foreign Business Act.
What sectors does the BOI focus on?
The BOI targets strategic sectors such as technology and innovation, advanced manufacturing, green energy, digital services, and high value‑added industries to support Thailand’s economic competitiveness.
Is BOI approval automatic after application?
No, the BOI conducts a detailed review of the project’s business plan and eligibility before granting promotion, and approval depends on how well the project aligns with Thailand’s development objectives.
