Tax & Non-Tax Incentives for Investors in Thailand
Thailand’s Board of Investment (BOI) offers one of the most comprehensive incentive programs in Southeast Asia, designed to attract foreign and domestic investment into priority industries.
This guide explains what BOI benefits really mean in practice, how tax and non-tax incentives work, and who can actually qualify — in plain language.
What Are BOI Benefits?
BOI benefits are investment incentives granted by the Thailand Board of Investment to approved projects that meet specific criteria such as industry type, technology level, capital investment, and economic contribution.
These benefits fall into two main categories:
- Tax Incentives – reduce or eliminate corporate taxes and import duties
- Non-Tax Incentives – remove ownership, land, visa, and operational restrictions
Together, they significantly reduce startup cost, operating risk, and regulatory friction.
Tax Incentives Explained
Corporate Income Tax (CIT) Exemption
BOI-promoted companies may receive corporate income tax exemption for 3–13 years, depending on the activity category.
Typical ranges:
- A1 / A2 activities: up to 8 years
- Advanced technology / strategic industries: up to 13 years
- Some projects also receive 50% tax reduction after the exemption period
📌 This exemption applies only to income generated from the promoted activity.
Import Duty Exemption on Machinery
BOI-approved projects are typically granted:
- 100% import duty exemption on machinery used in production
- Includes production machines, testing equipment, and sometimes molds or tooling
This is especially valuable for manufacturing plants
Import Duty Exemption on Raw Materials
For export-oriented projects, BOI may allow:
- Import duty exemption on raw materials and components
- Typically valid for 1–5 years, renewable
This directly improves cash flow and cost competitiveness for exporters.
Double Deduction & Additional Tax Benefits (Selective)
Some BOI projects may also qualify for:
- Double deduction on transportation, utilities, or infrastructure costs
- Accelerated depreciation for certain assets
Availability depends on location, industry type and BOI category.
Non-Tax Incentives Explained
Non-tax incentives are often more important than tax savings, especially for foreign investors.
100% Foreign Ownership Allowed
BOI-promoted companies may be allowed:
- 100% foreign shareholding, even in restricted sectors
- No need for Thai majority shareholders in promoted activities
This provides:
- Full management control
- Clear IP and profit ownership
- Easier group consolidation
Land Ownership Rights for Foreign Companies
Normally, foreign companies cannot own land in Thailand. BOI changes this.
Approved BOI companies may:
- Own land for factory or office use
- As long as it is used for the promoted activity
This is a major advantage for long-term manufacturing investments.
Visa & Work Permit Privileges
BOI-promoted companies receive streamlined immigration support:
- Faster visa & work permit processing
- Ability to sponsor foreign directors, engineers, and specialists
- One-stop service center coordination
Permission to Bring in Foreign Experts
BOI allows companies to:
- Employ foreign specialists without strict local quota limits
- Assign foreigners to technical or management roles unavailable locally
Relaxation of Foreign Business Act Restrictions
Many BOI-promoted activities are exempt from the Foreign Business Act, meaning:
- No Foreign Business License required
- Reduced legal uncertainty
- Faster market entry
Who Can Qualify for BOI Benefits?
BOI benefits are not automatic. Approval depends on:
- Business activity classification
- Capital investment level
- Technology and automation content
- Environmental compliance
- Local economic contribution
Typical qualifying sectors include:
- Manufacturing
- Automotive & EV
- Electronics & machinery
- Food processing
- Chemicals & materials
- Medical devices
- Logistics & export-oriented operations
BOI Benefits vs Reality: Common Misunderstandings
❌ “BOI means no tax forever”
✅ Tax exemption is time-limited and conditional
❌ “All activities get the same benefits”
✅ Benefits vary widely by industry and category
❌ “BOI handles everything automatically”
✅ Ongoing compliance and reporting are required
Is BOI Right for Your Business?
BOI is ideal if you:
- Plan to manufacture or export from Thailand
- Need foreign ownership or land rights
- Import machinery or technology
- Employ foreign specialists
- Want long-term cost and regulatory stability
BOI may not be suitable for:
- Small trading companies
- Low-value service businesses
- Pure domestic retail operations
Next Steps
If you’re considering BOI promotion, the next step is to evaluate:
- Eligibility of your business activity
- Realistic benefits vs compliance cost
- BOI vs non-BOI structure comparison
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