Are you starting a new venture in Thailand but haven’t tapped into BOI yet? You could be missing out on the fuel to ignite explosive growth. As the critical agency governing Thailand Board of Investment (BOI) promotion certification and incentives, the BOI possesses the sparks that commonly catalyse registered Thai companies towards unmatched success.
Ignore the BOI, and you turn a cold shoulder towards profound tax savings, striking process efficiencies, and tremendous growth stimulants. What would happen if you embraced the Board of Investment’s support? And what do you think would happen if you tap an experienced corporate filing agent for your BOI investment promotion certification and other corporate needs like company registration? Read on to know the answer.
Key BOI Benefits, Eligibility, and Application Process
After you register your Thai company and get the BOI promotion certification, things will never be the same. Let’s dive into the benefits that await you.
Sweeping tax incentives
The Thailand Board of Investment grants registered Thai companies under its wing sizeable tax perks, including:
- Reduction of or exemption from import taxes for machinery purchases
- Exemption from import taxes on goods that are imported as raw materials or necessities for export manufacturing
- Up to 90% reduction in import taxes on necessary and raw materials used in domestic manufacturing
- Import taxes waived for goods used for research and development
- Exemption from CIT for a maximum of 13 years, contingent on the location, the promoted activity, and the applicable law. The exemption may or may not have a cap equal to or greater than the investment amount, excluding the cost of land and working capital.
- If no tax holiday is granted, there will be a 50% reduction in the CIT rate for a maximum of ten (10) years from the date of first earning income.
- Dividends from promoted enterprises are excluded from taxable income for the duration of the CIT exemption and six (6) months following the end of any tax holiday period.
- For ten (10) years following the date that revenue from the promoted activity was initially received, there is a double deduction from taxable income for the costs of transportation, electricity, and water supply.
- On top of regular depreciation, 25% of the project’s infrastructure installation/construction costs may be subtracted from net profit. This deduction may be taken from net profit for one or more years within a ten-year period starting when revenue from the promoted activity was first generated.
- Deduction of up to 70% of the investment amount from the net profit over a ten-year period, in addition to the standard deductions.
- A ten billion THB subsidy under the Competitiveness Enhancement Fund is unconditionally granted if certain requirements are met.
Striking non-tax advantages
But the BOI’s treasures extend far beyond tax savings. Companies can also unlock viz-enhancing non-tax perks.
- Obtaining work authorisation for foreign experts becomes breezy with BOI support
- Import world-class technical experts or engineers without immigration ratio requirements
- BOI certification permits foreign entities to own land for carrying out promoted activities
- Make payments, remit profits, and exchange foreign currencies easily
With bounties this lucrative, obtaining BOI certification is a no-brainer for registered Thai companies. But what does the application process entail?
Eligibility criteria
Under the authority granted by the Investment Promotion Act of 1977 (and its 2017 4th amendment) and the Competitive Enhancement Act, the BOI provides tax incentives for specific activities falling into the following categories:
- The bio, medical, and agricultural sectors
- Advanced sectors of manufacturing
- Foundational and auxiliary sectors
- High-end services, the creative and digital sectors
- R&D with the goal of developing core technologies
Securing BOI promotion in 7 easy steps
Securing those coveted BOI benefits follows seven easy steps.
Step 1: Study the information
You must study the preliminary details and get the application form through either of the two: the BOI headquarters, regional offices, or overseas offices or through www.boi.go.th.
Step 2: Submit the official application
You can submit the application online only via the e-Investment Promotion Service on the board’s official website, except for the application for:
- Promotion to improve production efficiency
- Promotion of business transfer
- Investment promotion measure for grassroots economy
Step 3: Make an appointment with BOI
Book an appointment with BOI officials to clarify the projects within ten (10) working days from the date of submitting the application.
Step 4: BOI will analyse your project/s
They will take the consideration period depending on the investment capital.
- Investment capital not exceeding 200 million THB is considered within forty (40) days from the date when documents are completed.
- Investment capital not exceeding 2,000 million THB is considered within sixty (60) days from the date when documents are completed.
- Investment capital exceeding 2,000 million THB is considered within ninety (90) days from the date when documents are completed.
Step 5: BOI will notify you of the consideration results
BOI notifies the applicants of the consideration results within seven (7) days of the date of the approval during the meeting.
Step 6: Accept the investment promotion resolution
Applicants for the promotion can accept the promotion within a month from the receipt of the written notification of resolution through either channel:
- Fill in your details on the form via e-Investment Promotion Service on the website; or
- Fill out and submit the Promotion Acceptance Form (F GA CT 07)
Step 7: Apply for the certificate
You must submit the application for the promotion certificate and supporting documents for consideration within six (6) months through either channel:
- Fill out the form within e-Investment Promotion on the official website; or
- Fill out F GA CT 08, known as the Accompanying Application for Promotion Certificate form, and submit these supporting documents for the issuance of the promotion certificate
Step 8: BOI will issue the promotion certificate
The board issues the promotion certificate within ten (10) working days from the date it receives the application form and supporting documents.
Main Challenges and Expert Tips
You may meet challenges if you are unprepared to apply for the BOI promotion. As such, you should learn to navigate them by mastering the following tips we will share.
Meticulous documentation
The application requires the submission of thorough project details, feasibility studies, and financial estimates. Missing or having unclear documents may prolong the processing of your application.
- Expert tip: Engage an experienced BOI consultancy, like a registered filing agent, to compile airtight paperwork.
Communicating the project clearly
The assessors must grasp the gist of your project quickly to expedite approval. So avoid unclear or disjointed comms that may confuse officials and delay the certification.
- Expert tip: BOI consultancies directly interface with BOI officials on your behalf, using clear vocabulary to convey the project details.
Minding legal & regulatory considerations
Going after the benefits of a BOI certification as a foreign company brings added legal and regulatory complexities regarding minimum investment levels, ownership structures, facility locations, and more. It’ll go really bad if you overlook them.
- Expert tip: Investment law professionals can effortlessly navigate legal issues around ownership models, land titles, and regulatory adherence to strengthen your candidacy for BOI promotion.
Tracking policy changes
Evolving incentive schemes, eligibility criteria, and targeted industries are some of the main reasons why registered Thai companies should be constantly aware of the latest BOI policies. If you lag on updates, it means you are risking your BOI application and eventually getting rejected.
- Expert tip: Reliable consultancies continuously monitor BOI policy movements to provide updated guidance and personalised application strategies aligned with the latest incentive iterations.
Maximising BOI Benefits Through Strategic Industry Selection
Beyond pursuing standard incentives that are broadly available, companies can further optimise BOI advantages by choosing a strategic industry that aligns with Thailand’s 4.0 economic vision. The BOI actively spotlights sectors slated for elevated support and growth prioritisation.
Capitalise on the most generous and longstanding benefits by conducting due diligence into these government-favoured domains before you finalise business plan permits. The following are industries currently commanding peak BOI attention and outsized incentives.
Electric Vehicles (EVs)
With sustainability commitments growing, EV production, parts manufacturing, charging infrastructure development and related activities receive the following:
- Up to 8 years of tax holidays
- Import duty exemptions on raw materials or machinery
- Additional 25% deduction for facility modification investments
- Relaxed foreign ownership laws
As Thailand pursues automotive leadership within ASEAN, the BOI strongly supports registered companies spurring EV ecosystem growth.
Biotechnology
Encompassing agricultural biotech, medical innovations, diagnostics, integrated smart health systems, and more, biotechnology companies secure these incentives below.
- 8 years of corporate tax reduction
- Double deductions for skilled experts and R&D spending
- Streamlined approval for foreign specialist imports
- Subsidised funding for biotechnology park infrastructure access
Advanced Agriculture
The BOI promotes commercial-scale smart agricultural enterprises engaged in:
- Automation and AI crop optimisation
- IoT-enabled hydroponics or aquaculture
- Smart greenhouse integration
- Bio-fertilisers, biopesticides, and biostimulant development
Benefits include 8-year corporate tax holidays, import/export duty waivers, global talent access, and subsidised agritech park access.
Get Your BOI Certification ASAP
The BOI application process may seem straightforward but contains underlying complexities if not crafted carefully. Don’t attempt to do this alone. Partner with seasoned experts who offer diverse corporate services, like company registration, and personalised guidance, so you’ll get these incentives faster!
Are you planning to register a Thai company or get the BOI investment promotion certification? Schedule an in-office appointment with Reliance Consulting today, and we’ll take it from there.
