As Thailand’s 4.0 strategy continues to advance, the Board of Investment (BOI) has significantly upgraded its investment incentive policies for 2025, offering unprecedented policy benefits for companies looking to expand into the Southeast Asian market. From extended tax holidays and redefined industry thresholds to incentives linked to environmental protection and technology, moreover, a new wave of investment opportunities has opened up. Therefore, if you’re planning to “go global,” this is a golden opportunity you won’t want to miss.
Five Key Changes in the New BOI Policy
1. Comprehensive Adjustment of Industry Classification
(1) The BOI has redefined its priority industries; specifically, it is shifting its focus comprehensively toward high technology, green industries, and smart manufacturing.
(2) Introduction of new A1 top-tier incentive categories, including hydrogen energy equipment, solid-state batteries, artificial intelligence R&D, blockchain technology, and gene therapy.
(3) Downgrading of traditional industries: reduced tax incentives for the textile industry, and removal of solar cells, lead-acid batteries, and downstream steel industries from the promoted list.
2.Extension of Tax Holiday Periods
(1) Eastern Economic Corridor (EEC) priority zones: Tax holidays for advanced manufacturing industries (e.g., semiconductors, aerospace, industrial robotics) extended from 13 years to up to 15 years.
(2) Non-EEC regions: Relevant industries see tax holidays extended from 8 years to 10 years.
3.Investment Thresholds Adjusted (“Some Up, Some Down”)
(1) New energy vehicles: Threshold reduced from 200 million THB to 100 million THB.
(2) R&D centers: Investment threshold set at just 50 million THB.
(3) 15-year tax holiday projects: Manufacturing projects require a minimum of 500 million THB; R&D projects require at least 200 million THB.
4.Environmental and Technological Requirements Linked
Applicants must demonstrate environmental performance exceeding national standards; moreover, they need to show a solid grasp of core technologies.
5.Stricter Standards for Hiring Foreign Employees
For companies with over 100 employees, Thai nationals must make up more than 70% of the workforce.
Minimum monthly salaries for foreign executives are set at 215,000 THB for management positions; meanwhile, 250,000 THB applies to technical experts.
BOI’s key support priorities can be summarized into the following three categories:
（1） Top-tier strategic industries: hydrogen fuel cells, solid-state batteries, AI and gene therapy technologies.
（2）High value-added industries: electric vehicles, medical devices, data centers, cloud computing.
（3） Upgrading and transformation industries: smart agriculture, bioplastics, regional logistics centers, automation equipment, etc.
Investment Pitfall Guide: Three Common Reasons for Rejection
I. Documents Not Aligned with the New Template
1.All applications must use the BOI 2025 updated business plan template.
2.Technical documentation must be submitted in Chinese, English, and Thai.
II. Environmental and Cost Imbalance
1.Projects must include a wastewater treatment system meeting standards at least 30% higher than national requirements.
2.Sorting projects without a traceable recycling process will be directly disqualified.
III. Insufficient Localization
For certain industries, such as automotive parts manufacturing, proof of over 50% local content in raw materials is required; otherwise, the duration of tax incentives will be reduced.
The Thai government has clearly stated that over the next three years, BOI policy will continue to focus on the following two main priorities:
1.Digital Infrastructure
Projects such as data centers, cloud services, and submarine cable systems will enjoy 100% import duty exemptions on equipment.
2.Circular Economy (BCG Model)
Projects involving biofuels, eco-friendly polymers, and plant factories will not only receive standard tax holidays but also qualify for an additional five years of 50% corporate income tax reduction. A senior BOI spokesperson put it bluntly: “Traditional manufacturing that fails to achieve green and digital transformation will gradually be marginalized.”
The 2025 BOI policy overhaul not only signals Thailand’s strong commitment to industrial transformation and upgrading but also offers foreign investors clear direction and pathways. Faced with tougher requirements but more attractive incentives, companies will need to plan ahead, ensure compliance, and improve localization and technological capabilities to secure a competitive edge in the new wave of industrial competition in Southeast Asia.
If you would like to register a company in Thailand or learn more about company registration matters, feel free to contact WELLION for a consultation!
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