Thailand is one of Southeast Asia’s most attractive destinations for businesses and investors. To encourage long-term business development and economic growth, the Thai government established the Board of Investment (BOI), which grants BOI promotion, targeted incentives that reduce tax burden, unlock operational freedoms, and simplify compliance. If you’re choosing a structure, first understand what a BOI company is and how it differs from a standard Thai limited company. This guide explains the advantages of BOI promotion, what to consider before you apply, and why many foreign businesses use it as their preferred entry path.
Understanding BOI Promotion in Thailand
BOI promotion in Thailand refers to the official recognition and support provided by the Thailand Board of Investment to companies operating in industries that align with national economic goals. These include high-tech manufacturing, digital services, research and development, infrastructure, logistics, and more. It was established to attract foreign direct investment into sectors that align with Thailand’s long-term economic development goals. By granting promotional status to qualifying businesses, the BOI incentivizes investment in innovation, sustainability, and high-value industries.
BOI promotion is reserved for businesses that contribute meaningfully to national development whether through advanced technology, local employment, R&D, or infrastructure. In return, investors receive regulatory advantages that are otherwise difficult or impossible to access under standard company registration frameworks.
Tax Incentives Offered Under BOI Promotion
BOI promotion in Thailand includes robust tax privileges designed to ease financial burdens during critical phases of business development. These tax benefits vary depending on the project type and location, but generally include:
Corporate Income Tax Exemptions
Promoted companies may receive full exemption from corporate income tax (CIT) for up to 13 years, depending on the activity classification. After this exemption period, some businesses may also benefit from a 50% CIT reduction.
Dividend Exemptions
Dividends derived from promoted activities may be exempt from taxation if distributed during the tax exemption period, and for up to six months after the exemption period ends.
Import Duty Exemptions
BOI companies may import machinery and essential raw materials without paying import duties particularly for activities related to production or R&D. Exemptions also apply to materials used for export manufacturing or innovation development.
Double Expense Deductions
Eligible companies may deduct certain expenses such as electricity, water, and transport at twice their value. Additionally, investments in infrastructure or facility construction may qualify for a 25% additional deduction over 10 years.
These incentives help reduce capital outlays and operational costs, giving foreign investors more financial room to scale sustainably.
Non-Tax Advantages of BOI Promotion
BOI promotion in Thailand goes far beyond fiscal incentives. A host of non-tax benefits significantly improve operational efficiency and mobility for foreign investors:
100% Foreign Ownership
BOI promotion permits full foreign ownership in some of the sectors where the Foreign Business Act would otherwise restrict majority control, subject to other applicable laws (for example, activities prohibited under FBA List One). This simplifies corporate governance, investment structuring, and decision-making.
Streamlined Visa and Work Permit Processing
BOI companies benefit from expedited visa and work permit applications through the One Stop Service Center in Bangkok. For many promoted activities, BOI firms can be exempted from the standard 4:1 Thai-to-foreign employee ratio; actual headcount approvals remain subject to BOI conditions and prevailing immigration and labour practice.
Land Ownership Rights
Depending on business activities, foreign-owned companies promoted by the BOI may own land for operational use such as factory sites, offices, or residential premises for staff, an exception to Thailand’s general prohibition on foreign land ownership.
Capital Repatriation
BOI companies can remit dividends, profits, and capital abroad in foreign currency subject to standard Thai foreign-exchange reporting and Bank of Thailand procedures, ensuring global financial flexibility.
These operational privileges make it easier for foreign investors to manage staff, assets, and capital across borders without being slowed by Thailand’s traditionally protectionist rules.
Additional BOI Incentives Based on Project Merit
The BOI offers extended privileges for projects delivering high strategic value. These include:
Extended Tax Exemptions for Industrial Zones:
Businesses located in industrial estates or development zones may receive an additional year of CIT exemption and extended import duty benefits.
Merit-Based Bonuses:
Companies making significant R&D investments, engaging in infrastructure development, or establishing operations in less-developed provinces may receive extra years of tax relief and additional expense deductions.
Incentive Tiers:
The BOI classifies projects into tiers such as A1+, A1, A2, A3, A4, and B (non-tax) based on their level of technology, innovation, and national value. Higher “A” tiers receive more generous and longer-lasting benefits.
The strategic alignment of your business with BOI priorities like decentralization, technology development, or sustainability can significantly affect the scope of incentives awarded.
Key Considerations Before Pursuing BOI Promotion
While BOI promotion in Thailand is appealing, it is not automatic. Prospective applicants should carefully evaluate the following:
Sector Eligibility:
Your business must operate in a BOI-promoted industry, such as advanced manufacturing, biotech, software development, logistics, digital services, or energy. Activities outside these priority sectors are typically not eligible. Confirm your sector and minimums in BOI eligibility Thailand
Capital Investment Thresholds:
The minimum capital required is generally 1 million THB, excluding working capital and land costs. Companies must also demonstrate sufficient liquidity and a sustainable financial model.
Debt-to-Equity Ratios:
New companies must maintain a debt-to-equity ratio no greater than 3:1. Existing companies are assessed based on financial standing and compliance history.
Environmental Compliance:
Projects must include measures for environmental protection, especially if operations involve manufacturing or impact-sensitive locations.
Performance Obligations:
BOI companies are required to meet specific KPIs related to revenue, local hiring, exports, or technology transfer. Failure to meet these obligations can result in the withdrawal of benefits.
Application Process Duration:
Approval typically takes between 3–9 months and requires submission of detailed business plans, financial projections, HR policies, and project justifications. Support from experienced legal or advisory firms is strongly recommended.
BOI Promotion vs. Traditional Company Setup in Thailand
For many foreign entrepreneurs, the appeal of BOI promotion lies in what it eliminates: ownership limitations, visa quotas, licensing barriers, and tax constraints. While traditional Thai Limited Companies offer simplicity for low-scale service businesses, they do not provide the structural or financial freedom BOI companies enjoy.
If your business requires foreign expertise, seeks to maintain full control, or operates in an export-driven or tech-forward sector, the BOI pathway is often the superior choice. However, if your venture falls outside BOI-promoted categories or cannot meet the capital requirements, a traditional setup may still be more appropriate.
The Practical Bottom Line on BOI Promotion
BOI promotion in Thailand is a powerful mechanism for unlocking opportunities in a market known for both its potential and its regulatory complexity. With benefits ranging from full foreign ownership and generous tax exemptions to simplified visa processing and government support, a BOI company structure offers significant strategic value for qualified investors.
However, these benefits come with responsibilities, rigorous compliance, ongoing performance monitoring, and upfront administrative effort. That’s why expert guidance is essential from the outset.
And that’s where we (SVBL) come in. We’ll assess eligibility, map the right activity, model the incentive package, prepare your application and presentation, and set up a post-approval playbook (capital injection, visas/work permits, duty relief, reporting). Ready to move? Contact us for a concise eligibility review and a clear next-step plan.