What is the BOI?

The Board of Investment (BOI) of Thailand promotes economic growth, attracts foreign investment, and introduces new technologies. Its mission is to enhance global competitiveness, upgrade industries, avoid the middle-income trap, and ensure sustainable development.

The BOI supports industries such as high-tech manufacturing, smart electronics, renewable energy, biotechnology, the digital economy, aerospace, and advanced medical fields. It drives Thailand’s shift to high-value-added industries. The BOI also promotes regional investment, offering incentives in key areas like the Eastern Economic Corridor (EEC) to boost infrastructure and attract foreign enterprises. Through investment promotion, it helps Thailand attract foreign capital and, at the same time, adapts policies to global economic changes. As a result, this ensures steady growth and strengthens Thailand’s role in the regional and global industrial chain.

The top ten groups eligible to apply for the BOI

To promote economic growth and industrial upgrading, the BOI has designated ten industries for investment incentives, ranging from agriculture to high-tech services. Specifically, the classifications are as follows:

1.Agricultural Products, Food and Biotechnology Industry
This field includes modern agriculture, food processing, biotechnology, biopharmaceuticals, functional foods, and sustainable agriculture.

2.Medical Industry
It covers pharmaceuticals, medical devices, high-end medical services, biomedical engineering, precision medicine, hospitals, and R&D centers.

3.Machinery and Automotive Industry
It supports advanced machinery, intelligent equipment, automobiles, EVs, autonomous driving, and aerospace equipment.

4.Electrical and Electronics Industry
It includes semiconductors, integrated circuits, smart appliances, IoT devices, optoelectronics, and AI hardware.

5.Metal and Materials Industry
It supports high-end metal processing, new materials, nanotechnology, aerospace materials, composite materials, etc.

6.Chemical and Petrochemical Industry
It covers fine chemicals, green chemistry, new energy materials, biodegradable plastics, high-end petrochemical products, etc.

7.Public Utilities
It covers clean energy, smart grids, waste management, water treatment, urban infrastructure, and intelligent transport.

8.Digital Industry
It supports software development, cloud computing, blockchain, artificial intelligence, big data, 5G technology, e-commerce platforms, network security, etc.

9.Creative Industry
It includes cultural industries, design, film production, digital content, animation, game development, and marketing technology.

10.High-Value-Added Service Industry
It supports FinTech, EdTech, smart logistics, R&D centers, business consulting, and regional headquarters.

BOI preferential policies

(1) Tax Preferences

1.Exemption or reduction of import duties on machinery

2.Exemption or reduction of import duties on required raw materials or supplies

3.Exemption from corporate income tax and dividend tax

4.Preferential policy of 50% reduction in corporate income tax

5.Double deduction of transportation fees and utility bills (including water and electricity fees)

6.An additional deduction of 25% of the costs for the installation of facilities and construction

7.Exemption from import duties on raw materials or supplies required for the production of export products

(2) Non-tax Preferences

1.Foreign nationals are allowed to enter Thailand to explore investment opportunities.

2.The introduction of foreign technicians and technical experts is permitted to engage in work that enjoys investment incentives.

3.The right to own land is allowed.

4.The free remittance of foreign currency abroad is permitted.

Application Process of BOI’s Investment Promotion License

The BOI of Thailand offers the “Investment Promotion License” to attract domestic and foreign investment with tax and non-tax benefits. However, the application process is strict to ensure compliance with BOI policies and industry standards. The following is the complete application process for the BOI’s “Investment Promotion License”:

Step 1: Prepare the Investment Plan and Conduct Eligibility Assessment

1.Determine the Industry Category: Enterprises need to confirm whether their investment projects fall within the ten major industry categories encouraged by the BOI and meet the conditions of the investment promotion policies.

2.Enterprises must prepare a detailed business plan, including the investment amount, expected returns, production technology, market analysis, employment plan, etc.

3.Pre-eligibility Screening (Optional): Enterprises can consult the BOI or submit a preliminary investment plan to assess whether they meet the requirements of investment promotion.

Step 2: Online Application Submission

1.Log in to the BOI Electronic System: Investors need to register an account on the official website of the BOI (https://boi.go.th) and fill out the application form.

2.Submit Application Documents: These include company registration documents, investment plans, financial forecasts, technical descriptions, environmental impact assessments (if applicable), etc.

3.Pay the Application Fee (if any): Depending on different industries and investment scales, some projects may require the payment of an application fee.

Step 3: BOI Assessment and Interview

1.Preliminary Review (2-4 weeks): The BOI reviews the submitted materials to confirm the completeness of the documents and compliance with policy requirements.

2.Project Assessment and Interview (4-8 weeks): The BOI invites representatives of the enterprise for an interview to discuss in detail the technical feasibility, market potential, investment scale, employment contribution, etc. of the project.

3.Approval and Committee Deliberation (8-12 weeks): The BOI committee conducts a final review of eligible investment projects and makes an approval decision.

Step 4: Obtain the BOI’s Investment Promotion License

1.Notification of Approval: After being approved by the BOI, the enterprise will receive an official notice, requiring it to sign the “Investment Promotion Agreement”.

2.Obtain the License: The enterprise needs to complete the necessary procedures within the specified time (usually 30-60 days) and obtain the BOI’s Investment Promotion License.

Step 5: Project Implementation and Compliance Reporting

1.Company Registration and Business License Acquisition: Enterprises holding the BOI license are required to complete company registration in Thailand and obtain relevant business licenses.

2.Project Execution and Investment Realization: Enterprises implement the investment in accordance with the approved plan, including purchasing equipment, building factories, recruiting employees, etc.

3.Regular Report Submission: The BOI requires enterprises to submit regular operation reports to ensure compliance with investment commitments, including financial status, production progress, employment situation, etc.

Notes:

1.Application Period: The entire application process usually takes 3 – 6 months. The specific time depends on the scale and complexity of the project.

2.Corporate Obligations: Enterprises are required to implement the investment plan as approved. Otherwise, the BOI has the right to cancel the approved investment incentives.

3.Special Area Incentives: If investing in the Eastern Economic Corridor (EEC) of Thailand, enterprises may receive additional incentives.