To Business Owners Planning to Establish a Company or Factory in Thailand:
The Board of Investment (BOI) is a specialized agency directly under the Office of the Prime Minister of Thailand, tasked with promoting domestic and foreign investment and enhancing national competitiveness. For business owners planning to set up a company or factory in Thailand, obtaining BOI approval and incentives is a critical step toward optimizing investment structure and maximizing operational efficiency.
1. Core Responsibilities and Importance of the BOI
The primary responsibility of the BOI is to provide tax and non-tax incentives for eligible investment projects, alongside one-stop services to help investors establish their operations smoothly in Thailand.
“BOI incentives apply only to eligible industries and projects, and are not a mandatory requirement for all business registrations. However, if a project aligns with the industry sectors encouraged by the Thai government, applying for BOI promotion is essential to gaining a competitive advantage.”
Target Industries for Investment Promotion (S-Curve)
The BOI’s investment promotion policies are closely aligned with Thailand’s “Thailand 4.0” strategy, focusing on encouraging high-value-added and high-tech industries, known as the “S-Curve” industries:
2. BOI Incentive Categories and Tax Benefits
Based on tech content, innovation level, and economic contribution to Thailand, the BOI categorizes investment projects into two main groups: Group A (Tax & Non-Tax Incentives) and Group B (Non-Tax Incentives Only). Group A is further divided into tiers from A1+ down to A4.
Corporate Income Tax (CIT) Incentives
This is the primary incentive provided by the BOI, where the duration of tax exemption directly correlates with the project category.
Other Tax Incentives
Beyond corporate income tax exemptions, BOI-promoted enterprises can also enjoy the following benefits:
- Import Duty Exemptions on Raw Materials：Exemptions on import duties for raw and essential materials used in production for export.
- Import Duty Exemptions on Machinery：Exemptions on import duties for machinery and equipment imported for the investment project.
- Additional Deductions：
- Double deduction allowed for transportation, electricity, and water supply expenses.
研發（R&D）或員工培訓費用可享受 150% 的抵扣。
3. Non-Tax Incentives and Operational Facilitation
Non-tax incentives provided by the BOI aim to create a more convenient and attractive business environment for foreign investors:
4. Overview of the BOI Application Process
Applying for BOI incentives is a structured process, typically involving the following steps:
- Eligibility Consultation & Verification：Initial consultation with BOI officials to confirm project eligibility and determine the appropriate classification.
- Submission of Application Documents：Prepare detailed project proposals, company registration documents, etc., and submit the application.
- Project Presentation & Defense：BOI officials will interview the project manager to discuss and clarify specific details of the applied project.
- Approval & Notification：
- Projects with investment value below 500 million THB,Approval takes approximately 40–60 working days.
- Projects with investment value exceeding 500 million THB,Requires subcommittee approval; review time takes approximately 90 working days. [7]。
- Issuance of Promotion Certificate：Once approved, the BOI will notify the investor within 7 days and issue the Promotion Certificate within 10 days of receiving required documentation.
Establishment & Operation：The company must be established within 6 months of receiving the certificate, and factory construction, equipment importation, and operations must commence within the stipulated timeline.
Conclusion: Leverage BOI to Succeed in Thailand
BOI policies represent a sincere invitation from the Thai government to global investors. For business owners seeking to establish a high-efficiency, low-tax burden, and high-value-added production base in Southeast Asia, gaining an in-depth understanding of and successfully applying for BOI incentives will be the key to achieving long-term success and a competitive advantage in the Thai market.