The Thailand Board of Investment (“BOI”) is an agency formed by the Thai government tasked with promoting foreign investment into the Kingdom. It does so by incentivizing qualified investors with several benefits and providing information to facilitate a smoother investment process in Thailand. The Board operates directly under the Prime Minister’s Office.
The incentives provided by the BOI can split into two main categories: tax and non-tax incentives. The former consists of several exemptions and/or reductions in taxes for certain amounts of time, depending on the prospective applicant’s business activities. The latter consists of privileges that are not normally afforded to foreign investors, including full foreign ownership of a corporate entity and permission to own land in the Kingdom.
The process of applying for BOI promotion is complex and involves a bureaucratic process of compiling paperwork and other documents deemed necessary by the Board. It is recommended that those interested in applying for BOI promotion seek out an experienced law firm to facilitate the application.
The Office of the Board of Investment is tasked with attracting foreign and local entrepreneurs into investing in activities promoted by the agency through a number of incentives. This is done with the aim of expanding Thailand’s economy and developing local skills.
The following industries listed can be split into smaller business
activities such as manufacturing and technological transfer.
Depending on the nature of the business,
BOI-promoted companies are entitled to several incentives.
Depending on the company’s business activities,
the process often takes around 3-4 months.
The minimum required capital depends on the nature of the project and the industry it will be promoted under. At least 25% of the funds must be attained before the BOI certificate is issued, and the rest within 36 months after BOI the certificate has been issued. Foreign-owned companies must also provide proof of investment coming in from abroad.
BOI promoted companies are required to notify and update officials about their project on a regular basis
On top of the legal and government fees involved in the process, companies should also consider costs pertaining to the construction of facilities, hiring of staff, machinery, and other capital expenditures.
|BOI Company||Limited Company|
|Thai/foreign employee ratio||Negotiable||4:1|
|Corporate income tax rate||Varies between industries||20%|
|Foreign ownership||Up to 100%||49% maximum|
|Import duties on machinery imports||Exempted||VAT rate|
|Ongoing requirements||BOI update form submissions||Inspection by immigration officials|