Board Of Investment (BOI), Thailand


The Thai government established the Board of Investment (BOI) to provide investment incentives for both foreign and local entrepreneurs who are interested in investing in the agency’s promoted activities in year 1997.

The Thailand Board of Investments (BOI) is responsible for implementing Thai government policy for promoting certain business deemed beneficial to the Thai economy.

Thailand BOI has formulated criteria for projects applying for incentives and privileges. These depend on the location of the promoted activities and whether these are priorities or not. Below are the BOI Thailand incentives.

Thailand BOI Incentives

The Thailand BOI incentives are classified into the following types:

Tax Incentives
A BOI promoted company in Thailand may be eligible to receive an exemption or reduction of import taxes duties and may also be eligible to be exempted from a juristic person’s tax and dividends, as well as double deductions from the cost of transportation, electricity, water and project’s infrastructure installation.

Non-Tax Incentives
Local and foreign businesses certified by the Thai BOI are eligible to hire foreign skilled workers and experts. Further, the BOI provides for express non-immigrant visa and work permit processing through “One-stop Visa”. Non-tax incentives may also permit foreign freehold landownership to businesses involved in industrial related projects

Criteria for Project Approval

1. In order to develop competitiveness in the agricultural, industrial and service sectors, projects submitted for BOI promotion must have the following qualifications:

1.1 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.

1.2 Modern production processes must be used.

1.3 New machinery must be used. In case of imported used machinery, the criteria for consideration will be classified into 3 cases, as follows:

1) General Case

2) Factory Relocation Case

3) Other Cases


– Relocation of factory refers to the relocation of the production line either partially or in its entirely from a foreign country where the machinery to be used in the project belongs to affiliates or related companies.

– Machinery Performance Certificate refers to a certificate issued by a trusted institute that grants a machinery performance certificate, which includes a certified report on reconditioned machinery together with detailed documentation of the reconditioning. The inspection of certified machinery and equipment shall include a full test run of the machinery to evaluate its capacity and functionality, as prescribed by requirements of the testing procedure. An environmental impact report, a safety standards check and an energy consumption report must be compiled in accordance with the acceptable criteria. A certified report must identify 6 significant details, as follows:

1) Details on reconditioning and an analysis of the remaining lifecycle of the machinery;

2) Year of manufacture;

3) Test-run results;

4) An environmental impact report, safety standards check and an energy consumption report;

5) Appropriate price estimation (the price estimation certificate can be submitted separately);

6) Inspection report with date and place of inspection.

Note: * Planes in the Air Transportation Services project must be no more than 14 years old. (Please see condition under activity 7.3.4)

1.4 Projects that have investment capital of 10 million baht or more (excluding cost of land and working capital) must obtain ISO 9000 or ISO 14000 certification or similar international standard certification within 2 years from the full operation start-up date, otherwise the corporate income tax exemption shall be reduced by one year.

1.5 For a concession project and the privatization of a state enterprise project, the Board’s criteria shall be based on the Cabinet’s decisions dated May 25, 1998, and November 30, 2004, as follows:

(1) An investment project of state enterprise according to the 1999 State Enterprise Corporatization Act shall not be entitled to investment promotion.
(2) For Build-Transfer-Operate or Build-Operate-Transfer projects, the state agency that owns the project must submit its project to the Board for consideration prior to any invitation to bid, and bidders shall be informed of any promotional privilege entitled to them, prior to the bidding. In principle, the Board will not promote a project where the private sector pays the state for a concession, unless such payment is deemed reasonable in comparison with what the state has invested in the project;
(3) For Build-Own-Operate projects, including those leased to or managed by the private sector, which in return pays rent to the state, the Board shall use normal criteria for investment promotion. (4) For the privatization of state enterprises according to the 1999 State Enterprise Corporatization Act, in case of expansion after the privatization, only the expansion investment shall be eligible for promotion. Incentives shall be granted according to normal criteria for investment promotion.

2. Environmental protection

2.1 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.
2.2 Projects or activities with type and size that are required to submit environmental impact assessment reports must comply with related environmental laws and regulations or Cabinet resolutions. 2.3 Projects located in Rayong must comply with the Announcement of the Office of the Board of Investment No. Por 1/2554 dated May 2, 2011, on Industrial Promotion Policy in Rayong Province.

3. Minimum capital investment and project feasibility

3.1 The minimum capital investment requirement of each project is 1 million baht (excluding 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.
3.2 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. 3.3 For project with an investment value over 750 million baht (excluding cost of land and working capital) the project’s feasibility study must be submitted with details as specified by the Board.

Source: Announcement of the Board of Investment No. 2 /2557

Last Updated: November 2019

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