Thailand: An attractive country for foreign investors

Thanks to the BOI, Thailand attracts many foreign investors and foreign companies wishing to benefit from tax exemptions. These promotions have helped Thailand to rank among the most attractive investment locations in Asia. To this effect, the World Bank has ranked Thailand as the 21st most attractive country for investment.

What are the tax exemptions offered by the BOI?

As mentioned above, the BOI offers both tax and non-tax exemptions.

Corporate tax exemptions up to 15 years: First of all, as far as tax incentives are concerned, a BOI company can benefit from corporate tax exemptions ranging from 0 to 13 years depending on the BOI category obtained.

50% tax exemptions after the exemption period: An additional 50% corporate tax exemptions can be applied at the end of the exemption period of the tax-exempt company.

Import duty exemption on machinery: Also, the company benefits from an import duty exemptions on machinery. In addition, a business can enjoy a reduction in import duties on raw or essential materials and an exemption from import duties on materials imported for research and development purposes.

Tax boi company thailand

What activities are eligible for tax exemptions in Thailand under the BOI?

The BOI has four divisions responsible for promoting investment in Thailand:

Investment Promotion Division 1: Agricultural, Bio and Medical Industries
Investment Promotion Division 2: Advanced Manufacturing Industries
Investment Promotion Division 3: Basic and Supporting Industries
Investment Promotion Division 4: Digital, Creative Industries & High Value Services
Investment Promotion Division 1-4: Research and Development, Targeted Core Tech Dvlpt

What are the non-tax benefits offered by the BOI?

➤ Allowing 100% foreign ownership
➤ The permission to own land in Thailand
➤ The right to employ foreigners without imitation
➤ The promoted activities can benefit from a permission to transfer funds in foreign currency

What is the application procedure for BOI tax exemptions?

The application procedure is divided into three steps. In the first step, the company must obtain a positive “Notification of Resolution” from the BOI. In the second step, the company must obtain the “Promotion Certificate” to apply for incentives. Finally, the Company will receive the “Certificate of Commencement of Operation”.

What is the selection procedure for tax exemption?

The company must submit an application via the e-Investment platform. The application form provides general information about the applicant(s) and their investment project. In addition, the applicant must make an appointment with the BOI to present their project. This allows applicants to clarify the specific details of the investment project and to convince the BOI to approve their project. Also, the applicant will need to provide all documents related to their project and company development. After the presentation stage, the BOI applicant will prepare a report on the project, which will be submitted to the panel for review. The length of the review period will depend on the amount invested in the project. After the deadline, the applicant will receive a “Notification of Resolution” accepting or rejecting the project.

After receiving the Notification of Resolution, the applicant will have a period of one month from the date of the notification to accept it and another one year to send all the required documents to obtain the “Promotion Certificate”. The BOI will issue the “Promotion Certificate” within ten working days.

Upon receipt of this notification, the company will be entitled to all the tax exemptions and benefits of the BOI.

If you would like more information on tax exemptions for your business in Thailand from the BOI, request a free consultation with an expert. We can advise you on everything from optimal business structure, capital investment, full foreign ownership, shareholder requirements and more.

Can you benefit from the BOI tax and non-tax incentives in Thailand?

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