BOI Promotion & Investment Incentives

BOI promotion is an incentive status granted by the Board of Investment (BOI) under the Investment Promotion Act B.E. 2520 (1977). Thailand uses it to attract investment in priority sectors, offering corporate income tax (CIT) exemptions of 3 to 13 years, import duty relief, and faster visas and work permits. In return, promoted companies commit to specific conditions, such as a minimum investment, jobs, technology transfer, or exports. The BOI updates its list of promoted activities regularly.

From 19 May 2025, the BOI improved its SME measure for Thai-owned companies investing in efficiency: the CIT exemption went from 3 years capped at 50% of the investment to 5 years capped at 100%. To qualify, the company must be Thai-majority owned, fall within the SME size limits, and carry out a manufacturing or technology service activity. Applications under this measure go through a faster review track.

Plan for 6 months or more. After Plizz scopes and drafts the application, BOI staff evaluate it, then a subcommittee or the Board approves it. The exact time depends on the authority, on your tier, and on your documents; applications under the 2025 SME measure go through a faster review track.

For most activities, the minimum is THB 1 million of investment, not counting land and working capital. Some activities set much higher floors, and large strategic projects in tiers A1 and A1+ usually involve THB 200 million or more. Our preliminary assessment confirms the minimum for your activity before any drafting starts.

Yes. BOI promotion depends on the activity, not the nationality of the owners. A BOI-promoted company can be majority or fully foreign-owned in its promoted activity, even where the Foreign Business Act (FBA) would otherwise cap foreign ownership at 49%. The exception is the 2025 SME measure, which is open only to Thai-majority SMEs; it is one of the few BOI incentives where Thai majority ownership is required.

Check them in this order. First, BOI promotion, if your activity is on the promoted list: it gives the best mix of foreign ownership and tax benefits. Second, the US-Thai Treaty of Amity, if the company is majority American and the activity is not promoted (or BOI reporting would cost more than it saves): fast, up to 100% ownership, no tax exemption. Third, a Foreign Business License (FBL) if neither applies: slower, discretionary, and without tax benefits, but the only route for other foreign-majority companies in restricted activities. Our preliminary assessment runs this check for every client.

The company must start actual operations (production or service delivery, not just incorporation) within 36 months of the date on the BOI certificate. Missing the deadline without an approved extension is grounds for the BOI to revoke the certificate, and revocation can remove the CIT exemption retroactively: profits that were exempt become taxable, with surcharges and interest. Extension requests must be filed before the deadline, and the BOI decides case by case. Plizz prepares extension requests 90 days in advance.

Yes. The CIT exemption is the main benefit, but VAT (7%), withholding tax (WHT), stamp duty, and employees' personal income tax (PIT) still apply. A BOI company files monthly VAT and withholding tax returns, half-year and annual CIT returns (showing the exempt profit), and BOI compliance reports. The exemption covers only net profit from the promoted activity; income from other activities is taxed normally. Plizz's bookkeeping and tax filing services keep the two separate in your accounts.

BOI-promoted companies handle Non-Immigrant B (Non-B) visas and work permits for their foreign staff through the BOI's One Start One Stop Investment Center (OSOS) in Bangkok. The process is simpler than the regular Department of Employment channel. This benefit gets little attention, but it often decides the matter for groups that rotate foreign staff through Thailand.

A tiers (A1+ to A4) give both tax incentives, a CIT exemption of 3 to 13 years, and non-tax incentives such as import duty relief, fast-track work permits, and the right to own land for the project. B tiers give non-tax incentives only, such as fast-track work permits and, for B1, import duty exemption on machinery, with no CIT exemption. A B tier suits service companies that pay little Thai CIT but need fast visas and work permits for foreign staff.