Breaking Into the Thai Market: Essential BOI Investment Incentives and Strategies for Foreign Investors

Thailand’s Board of Investment (BOI) offers a comprehensive suite of incentives to attract foreign investors, including tax exemptions, import duty reductions, and non-tax benefits such as land ownership rights and streamlined work permits. With the latest updates under the BOI’s 2023–2027 investment strategy, Thailand is prioritizing high-tech industries, electric vehicles (EVs), and sustainable agriculture. Below, we explore the latest incentives, key sectors, and successful foreign investments benefiting from BOI promotions.

BOI Investment Incentives at a Glance

1. Tax Incentives

BOI-promoted projects receive substantial corporate income tax (CIT) exemptions, depending on their industry and investment scale. Businesses can qualify for up to 13 years of CIT exemption, particularly in high-priority sectors such as biotechnology and digital industries (BOI Tax Incentives). Additional tax benefits include:

Import Duty Exemptions on machinery and raw materials for export production.
Tax Breaks on Dividends during the CIT exemption period.
Enhanced Deductions for utilities and infrastructure investments.

2. Non-Tax Incentives

Beyond tax benefits, BOI promotions provide valuable non-tax advantages, such as:

100% Foreign Ownership in certain BOI-promoted industries.
Land Ownership Rights for foreign entities.
Fast-Tracked Work Permits & Visas for foreign specialists.
Freedom to Remit Funds Abroad for profit repatriation.

Key Sectors with Enhanced BOI Incentives

1. Technology and Digital Economy

Thailand is positioning itself as a regional digital hub, prioritizing investments in cloud computing, AI, and data centers. High-tech investors receive 8-year CIT exemptions and duty-free importation of IT equipment.

A notable example is TikTok’s $3.76 billion data center investment, benefiting from BOI incentives and enhancing Thailand’s status as an AI and cloud infrastructure hub.

2. Electric Vehicles (EVs) and Automotive Industry

Thailand aims to become the EV production hub of Southeast Asia, offering CIT exemptions of up to 11 years for companies producing battery EVs and advanced automotive technology.

Several global automakers, including BYD, Toyota, BMW, and Mercedes-Benz, have established BOI-promoted EV factories. BYD invested $490 million in an EV assembly plant in Rayong province, benefiting from BOI tax holidays and import duty waivers.

3. Agriculture, Agri-Tech, and Bio-Circular-Green (BCG) Economy

Thailand’s BOI strategy strongly supports sustainable agriculture and biotechnology, offering CIT exemptions of 10–13 years for “food for the future” innovations and biodegradable materials production.

One success story is NatureWorks, a U.S.-based bioplastics company investing 15 billion baht in a PLA biopolymer plant in Thailand, benefiting from tax exemptions and import duty-free capital equipment.

Application Process for BOI Promotion

To receive BOI incentives, foreign investors must:

Identify Eligible Activities – Review Thailand’s BOI-promoted industries.
Prepare a Business Plan – Include financial projections, employment plans, and investment goals.
Submit Application Online – Use the BOI e-Foreign Business system for faster approvals.
BOI Interview and Approval – Present your project to BOI officials to demonstrate its alignment with national development goals.
Receive BOI Promotion Certificate – Once approved, the certificate grants tax and non-tax benefits.

By leveraging BOI incentives, foreign investors can reduce costs, streamline operations, and gain long-term advantages in Thailand’s growing economy. With enhanced incentives for high-tech industries, EV production, and sustainable agriculture, Thailand continues to be one of the most attractive investment destinations in Southeast Asia.

For more details, visit the BOI official website to explore investment opportunities and application procedures.