Thailand Board of Investment (BOI)

The Thailand Board of Investment (BOI) is an agency of the Government of Thailand. Its mission is to promote investment both Thai entrepreneurs and foreign investors in Thailand by providing investment incentives and privilege who invest in the promoted business in order to attract more investment, if you are foreign investors who are interested to invest and establish the business in Thailand which your business meets the criteria of BOI and be under promoted business categories, you may apply for BOI promotion to be “BOI Company”

In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted for BOI company:

Tax incentive

  • Exemption of import duties on machinery
  • Reduction of import duties for raw or essential materials
  • Exemption of corporate income tax on the net profit and dividends derived from the promoter activity.
  • A 50 percent reduction of the corporate income tax
  • Double deduction from the cost of transportation, electricity and water supply.
  • Additional 25 percent deduction of the cost of installation or construction of facilities
  • Exemption of import duty on raw or essential materials imported for use in production for export

Non-Tax incentive

  • Allow 100% foreign ownership of the company
  • Permit for foreign nationals to enter the kingdom for the purpose of studying investment opportunities
  • Permit to bring into the Kingdom of Thailand skilled workers and experts to work in investment promoted activities
  • Permit to own land
  • Permit to take out or remit money abroad in foreign currency.

Eligible activities by business categories which promoted by BOI

Section 1: Agriculture and Agricultural Products

Section 2: Mineral, Ceramics and Basic Metals

Section 3: Light Industry

Section 4: Metal Products, Machinery and Transport Equipment

Section 5: Electronics and Electrical Appliances Industry

Section 6: Chemicals, Paper, and Plastics

Section 7: Service and Public Utilities

Section 8: Technology and Innovation Development

The Board of Investment stipulates the following criteria for project approval:

1.Development of competitiveness in the agricultural, industrial and services sectors

The value added of the project must not be less than 20% of revenues, except for projects in agriculture and agricultural products, electronic products and parts, and coil        centers, all of which must have value added of at least 10% of revenues.

1. Modern production processes must be used.

2. New machinery must be used.
In case of imported used machinery, criteria are as follows:

       2.1 In case of used machinery not over 5 years old, counting from the manufacturing year to the importing year, the machinery shall be allowed to be used in the        project and counted as investment capital for the calculation of the cap on corporate income tax exemptions; however, they shall not be granted import duty exemption. A machinery performance certificate issued by a trusted institute identifying efficiency, environmental impact and energy usage for the machine, as well as its fair value, must be obtained.

      2.2 In case of used machinery over 5 years old but not exceeding 10 years old, counting from the manufacturing year to the importing year, only press machines shall be allowed to be used in the project and counted as investment capital for the calculation of the cap on corporate income tax exemptions; however, they shall not be granted import duty exemption. A machinery performance certificate issued by a trusted institute identifying efficiency, environmental impact and energy usage for the machine, as well as its fair value, must be obtained.

     2.3 For sea and air transport activities and molds and dies, used machinery over 10 years old, counting from the manufacturing year to the importing year, may be allowed to be used in the project as deemed appropriate, counted as investment capital for the calculation of the cap on corporate income tax exemptions and granted machinery import duty exemption. Criteria shall be as specified by the Office of the Board of Investment.

2.Environmental protection

1. Adequate and efficient guidelines and measures to protect environmental quality and to reduce environmental impact must be installed. The Board will give special consideration to the location and pollution treatment of a project with potential environmental impact.

2. Projects or activities with type and size that are required to submit environmental impact assessment reports must comply with the related environmental laws and regulations or Cabinet resolutions

3. Projects located in Rayong must comply with the Office of the Board of Investment Announcement No. Por 1/2554 dated May 2, 2011, on Industrial Promotion Policy in Rayong Area.

3.Minimum capital investment and project feasibility

1.The minimum capital investment requirement of each project is 1 million baht (excluding the cost of land and working capital) unless specified otherwise on the list of activities eligible for investment promotion that is attached to this announcement.

As for knowledge-based services, the minimum capital investment requirement is based on the minimum annual salaries expense specified in the list of activities eligible for investment promotion.

2.For newly established projects, the debt-to-equity ratio must not exceed 3 to 1. Expansion projects shall be considered on a case-by-case basis.

3.For projects with the investment value of over 750 million baht, (excluding the cost of land and working capital), the project’s feasibility study must be submitted with details as specified by the Board

The process of applying BOI Thailand

  • Preparing and submitting the BOI investment application Form
  • Contact BOI officials within 10 days after application submission to make an appointment for presentation and interview
  • Project evaluation by BOI

- Investment value less than or equal to 200 million baht considered by OBOI within 40 working days after submitting complete documents

- Investment value 200-2,000 million baht considered by sub-committee within 60 working days after submitting complete documents

- Investment more than 2,000 million baht considered by sub-committee and then the board within 90 working days after submitting complete documents

  • Submit Promotion Acceptance Form within 1 month after receiving the notification from BOI
  • Submit Company Establishment Form within 6 months after promotion acceptance
  • Obtain BOI Certificate

As foregoing information, you can see that the incentives for BOI company are very attractive for foreign investors such as tax-incentive, majority foreign shareholders and can own the land, if you are looking for investing in Thailand and interested to apply for BOI Certificate, Greenpro KSP Consulting has a BOI team with experience and knowledge to assist you in the process of obtaining the BOI certificate.

Eastern Economic Corridor (EEC)

The Eastern Economic Corridor (EEC) Development Plan under the scheme of Thailand 4.0 which takes into account the shifting of Thailand’s economy to value-based, innovation-driven economy which connecting to 10 industries to be promoted.

The EEC project will, initially, be focused in 3 eastern provinces as Chachoengsao, Chonburi, and Rayong.

In order to help investors starting and expanding their investment in the new growth hub, Thailand Board of Investment (BOI) provides more investment incentive scheme for the investors who invest in Eastern Economic Corridor (EEC), if your business is under the categories of 10 industries to be promoted in EEC project so that you can see the opportunities and wish to invest in EEC project, Greenpro KSP Consulting can assist you to apply for investment in EEC through BOI.

10 Target industries in EEC

The First 5 S-Curve industries

Next-Generation Automotive Industry

The Next-Generation Automotive Industry has seen great developments stemming from its expansion of value chains to incorporate electric automobiles. The developments can especially be seen in the design and modeling processes, which have benefited from the incorporation of technological advancements leading to more efficient, and highly precise production systems.

The Intelligent Electronics Industry

The Intelligent Electronics Industry refers to the manufacturing of electronic systems or devices, which are used in automobiles, communication devices, the design of smart homes, and wearable technology.

Advance Agriculture and Biotechnology

Advance Agriculture and Biotechnology employ advanced agricultural technology using automated analytical techniques, research, and investment in biotechnology to improve and enhance flora and fauna.

The Food Processing Industry

The Food Processing Industry offers Food for the Future, focusing on increasing accountability and traceability in adhering to and promoting food safety standards, research and production of healthy nutrients, and the production of processed foods which are enhanced with alternative proteins, such as textured vegetable protein.

The Tourism Industry

The Tourism Industry is responsible for organizing and promoting many various events and activities at major tourist destinations, supporting medical rehabilitation business sectors as well as recuperation centers, and promoting international exhibitions at centers and convention halls.

5 New S-Curve industries

incorporate new growth industries that compliment, supplements and synergizes our industrial base

The Digital Industry

The Digital Industry is in high demand across the globe as it constitutes a new standard in working life and careers, e.g. E-Commerce, digital content creation, hosting data centers, and cloud computing stand to benefit and streamline working life for all.

The Advanced Robotics Industry

The Advanced Robotics Industry answers the longstanding call for higher standards of safety and efficiency for the world. This industry is rapidly expanding and will surpass the automotive industry in size due to its application and expertise in many areas, e.g. diving robotics as well as medical robotics.

The Aviation and Logistics Industry

The Aviation and Logistics Industry is expanding and obtaining more airplanes and carriers to support a higher demand for air shipment and transportation. U-Tapao Airport has evolved to become an international airport with MRO and training center development. Once it is integrated with Don Muang and Suvarnabhumi Airport’s capabilities, Thailand will become the hub of traffic in Asia.

Medical Hub

Our Medical Hub offers the highest quality of doctors and nurses, who operate in our modern facilities and hospitals. In the future, drug production investment, medical equipment development, and long-distance treatments via the internet or smartphones.

The Biofuel and Biochemical Industry

The Biofuel and Biochemical Industry of Thailand is fortunate to have its foundations in the largest agricultural area of all ASEAN. Given these favorable conditions coupled with the world’s progress in standardizing bio-economy principles, comprehensive development of biochemicals, like exportation bio-plastic made containers, are sure to be in high demand.

The following incentives will be granted:

  • Exemption from corporate income tax for up to 15 Years.
  • Exemption of import duties on machinery/raw or essential materials imported for use in production for export/ goods for R&D.
  • Matching Grants for Investment/ R&D/ Innovation/ Human Resources Development for Targeted Industries.
  • Permission to own land for BOI promoted projects.
  • Rights to state’s land lease for 50 years, renewable upon approval for a further 49 years,
  • 17% personal income tax rate, the lowest rate in ASEAN, for foreign executives working for regional headquarters or international trading companies, treasury centers, along with regional R&D centers.
  • One-stop service center to facilitate foreign investors, provide useful information, and issue permits for trading, export and import all in one location.
  • Five-year work visa issuance to attract investors, experts and scientists from around the world

Requesting permission

Investment Promotion in Eastern Special Development Zone. The Board of Investment (BOI) has prepared special investment incentives for investors investing in the EEC area.

However, major investors in some target industry segments that use advanced technology. This may require the cooperation of many agencies to push the advanced technology to the industry in Thailand. The Eastern Economic Corridor will be the central agency for coordinating, tracking and facilitating major investors, to push up investment projects in the EEC area and upgrade the Thai industry according to the purpose of the Eastern Special Development Zone

Criteria for selection of investors, businesses to be promoted and to push up investment are as follows;

  • Investors who are interested in doing business in the target industries.
  • Investors have been approved in principle of the project or have been promoted by the Board of Investment.
  • The investment is advanced technology and can upgrade the target industries in Thailand.
  • Investors are keen to collaborate with government agencies to drive on using advanced technology at the industry level,

For more information, please contact Greenpro KSP Consulting, we can assist you to apply for investment in EEC project through BOI.