BOI Incentives for Foreign Investors: A Complete Guide

Thailand's Board of Investment (BOI) offers some of Southeast Asia's most attractive incentive packages. But navigating the application process requires understanding which activities qualify and how to structure your proposal for approval.

What Is the BOI?

The Board of Investment is a Thai government agency that promotes targeted industries through tax breaks, land ownership rights, and streamlined work permit processes. It's not automatic—you must apply and demonstrate how your business aligns with Thailand's economic development goals.

Key Incentives Available

Tax Benefits

• Corporate income tax exemption: Up to 8 years for promoted activities
• Reduced CIT rate: 50% reduction for 5 years after exemption period
• Import duty exemption: On machinery and essential materials
• Double deduction: Transportation, electricity, and water costs

Non-Tax Benefits

• Land ownership: Foreign companies can own land for promoted projects
• Work permits: Simplified process for skilled foreign workers
• 100% foreign ownership: Allowed in most promoted categories
• Foreign currency remittance: Simplified procedures

Priority Industries (2024)

The BOI focuses on Thailand 4.0 sectors and industries that create high-value employment:

The Application Process

Step 1: Pre-Application Consultation

Before submitting, meet with BOI officers to discuss your project. This informal step can save months by identifying issues early. Bring your business plan, financial projections, and be prepared to explain job creation numbers.

Step 2: Formal Application

Submit detailed documentation including:

• Company registration documents
• Detailed business plan with 3-year projections
• Technology transfer plans (if applicable)
• Environmental impact assessment
• Job creation and training plans
• Land/building lease agreements

Step 3: BOI Review

The BOI evaluates applications based on:

• Alignment with priority industries
• Technology level and innovation
• Value added to Thai economy
• Employment creation (especially skilled positions)
• Environmental impact
• Regional development contribution

Step 4: Approval and Promotion Certificate

Processing typically takes 40-90 days. Once approved, you'll receive a promotion certificate specifying your incentives and any conditions (minimum capital, hiring quotas, technology transfer).

Common Pitfalls

We've seen companies struggle with BOI applications for avoidable reasons:

• Underestimating capital requirements: Some categories require minimum registered capital
• Vague technology descriptions: Be specific about what makes your tech innovative
• Unrealistic projections: BOI officers can spot inflated numbers
• Missing environmental plans: Even service companies need environmental considerations
• Poor Thai language documents: Key materials should be professionally translated

Post-Approval Compliance

Getting approved is just the start. You must:

• Submit annual reports on operations and incentive usage
• Meet minimum capital injection timelines
• Achieve stated employment targets
• Notify BOI of significant business changes
• Maintain proper accounting records for incentive claims

Failure to comply can result in incentive cancellation and clawback of benefits received.