BOI, Foreign direct investment, Investment in Thailand, 100% foreign-owned structure

What is BOI?

Have you ever heard about “BOI” before? If not, this article would help you to understand why BOI is one of the most important things that you should know before investing or expanding your business in Thailand.

BOI or “Board of Investment of Thailand” is a government body established in 1977 with the key purposes to promote and support business activities and investments in order to restructure Thailand’s economy into new economy. In other words, the BOI’s objectives are promoting the investment opportunities, developing innovation technology, and improving the economic growth in Thailand. 

The eligible activities for BOI are summarized as per below picture:

BOI Incentives

Let’s get to the point, the reason why BOI is the best option for foreign direct investment in Thailand because it provides both tax and non-tax incentives. Some highlighted incentives are set out below:

Tax IncentivesNon-Tax Incentives
Exemption/reduction of import duties on machineryPermit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities
Reduction of import duties for raw or essential materialsPermit to bring into the Kingdom skilled workers and experts to work in investment promoted activities
Exemption of import duties on materials imported for R&D purposesPermit to own land
Exemption of corporate income tax (subject to additional conditions) on the net profit and dividends derived from the promoted activityPermit to take out or remit money abroad in foreign currency
50% reduction of the corporate income taxPermit (most of the promoted investment) to establish an entity with 100% foreign-owned structure.
Double deduction from the costs of transportation, electricity and water supply
Additional 25% deduction of the cost of installation or construction of facilities; and

BOI Process 

Step 1 – Pre-Consultation 

Step 2 – Formal Submission 

Step 3 – Consideration and Approval

Step 4 – BOI Promotion Certificate

For further information, please contact:

Bunnasomboon (Aaron) Chaiparinya
[email protected]