Requesting for Investment Promotion from the BOI
Requesting for investment promotion is under the supervision of the Board of Investment (BOI), which is the agency promoting both domestic and international investment in Thailand. Its objective is to promote investment towards increased competitiveness, surmounting the middle-income trap, and achieving sustainable growth based on the Sufficiency Economy Philosophy.
Who can apply for investment promotion or the BOI?
- Thai investors and foreign investors.
What are the advantages of applying for investment promotion (BOI)?
- Promotes both Thai and foreign investors of all investment sizes and on a project-by-project basis.
- Promotes agricultural, industrial, and service sectors, and promotes all areas nationwide, with rights allocated according to target areas.
- Promotes economic investment, such as increasing competitiveness, exports, employment, and income distribution.
- To reduce cost risks from the start of a business and create investment opportunities from the benefits received from applying for the BOI.
- To facilitate both domestic and international investors. Creating connections between investors.
Benefits to be received if the BOI application is successful.
Tax benefits
- Corporate income tax exemption for up to 13 years (depending on the type of business and conditions).
- An additional 5-year 50% income tax reduction (only in investment promotion zones).
- Exemption of import duty on machinery.
- Exemption of import duty on raw materials for export.
- Exemption of import duty on items imported for research and development.
Non-tax benefits
- Allows foreigners to own 100% of their shares (except for businesses listed in List One of the Foreign Business Act or those specifically stipulated by other laws).
- Allows land ownership.
- Allows skilled workers/experts to work.
Types of businesses eligible for investment promotion
Classified by industry group and business type as follows:
- Agricultural industry, biotechnology and medicine
- High-tech industries
- Basic and supporting industries
- Digital, creative, and high-value-added service industries
- Research and development and targeted technology development
Project approval criteria (preliminary)
- Projects must meet BOI requirements for business types.
- Considered on a project-by-project basis. Projects must be new investments, not existing operations.
- Employ modern production processes.
- Minimum investment of no less than 1 million baht (excluding land and working capital).
- Debt-to-registered capital ratio no more than 3 to 1.
- Value-added of no less than 20% of revenue, except for agricultural/electronics and metal parts/cutting businesses, which must have a value-added of no less than 10%
- There must be standard guidelines for preventing and reducing environmental impacts.
Foreign Shareholding Criteria
- Investment projects must have Thai nationals holding a combined share of at least 51% of the registered capital, according to List One of the Foreign Business Act.
- Investment projects must allow foreigners to hold majority or all of the shares, except in cases where other laws specifically stipulate. According to Lists Two and Three of the Foreign Business Act, appropriate proportions can be set for certain types of businesses. If foreign experts are brought in, they must comply with the Investment Promotion Act B.E. 2520.
From the preliminary information we have compiled, it can be seen that applying for investment promotion is another opportunity to support your business, enabling it to operate more smoothly and efficiently. If your project meets the investment promotion criteria, it can increase opportunities for your business both domestically and internationally.