This article gives you basic information about the advantages of BOI (Thailand Board of Investment) promotion which offers to foreigner investors the incentives to start or expand their business into Thailand. The incentives are based on chapter 3 ‘Rights and Benefits’ of the Investment Promotion Act1, where there are two main incentives, tax-based and non-tax-based.

Tax-Based Incentives

BOI offers exemption from payment of corporate income tax (CIT), personal income tax and import duties as follows;

Import Duties On Machinery

A promoted person (one who is granted a promotion certificate under the Investment Promotion Act) shall be granted exemption from payment of import duties on machinery as be approved by the BOI, providing that such machinery comparable in quality is not being produced or assembled within Thailand in sufficient quantity to be acquired for use in such activity (Section 28).

However, in some cases, BOI may grant the reduction of one-half of the rate of import duties or not granting the exemption of import duties and /or business taxes on the machinery (Section 29).

Import Duties For Raw Materials

BOI may grant a promoted person a reduction of import duties not exceeding ninety percent of the normal rates imposed on raw or essential materials which are imported into Thailand for the purpose of producing, mixing, or assembling in the promoted activity.

Each time for a period not more than one year from the date prescribed by the BOI. The foregoing shall be in accordance with such kinds, quantities, periods of time, conditions and procedure as shall be prescribed by the BOI (section 30).

Import Duties On Materials Imported For R&D

To promote research and development (R&D), the BOI may grant a promoted person exemption from payment of import duty on the goods imported by the promoted person for the use in research and development including related tests as announced by the BOI (Section 30/1).

Corporate Income Tax On The Net Profit

A promoted person shall be granted exemption of CIT on the net profit derived from the promoted activity, for a period of not more than eight years from the date income is first derived from such activity (Section 31).

Dividends Derived From The Promoted Activity

Dividends derived from a promoted activity shall be exempted from computation of taxable income throughout the period the promoted person receives the exemption of corporate income tax (Section 34).

50 Percent Reduction Of The Corporate Income Tax

A fifty percent reduction of the normal rate of CIT on the net profit derived from the promoted activity for a period of not more than five years commencing from the expiry date of 8 years exemption of CIT, or from the date income is first derived from the promoted activity in the case where the promoted person is not granted exemption of CIT (Section 35(1)).

Double Deduction From The Costs

Permission to deduct for the purpose of assessing CIT an amount double the costs of transportation, electricity and water supply incurred by the promoted person in the operation of the promoted activity. (Section 35 (2)).

Additional 25 Percent Deduction Of The Cost Of Construction

Permission to deduct from the net profit an amount not exceeding twenty-five per cent of the cost of installation or construction of facilities used in the promoted activity. The promoted person may, in addition to normal depreciation, choose to make such deductions from the net profit of any one year or several years within ten years from the date income is first derived from the promoted activity. (Section 35(3))

Import Duty On Raw Materials Imported For Use In Production For Export

For the purpose of export promotion, the Board may grant the promoted person one or more of the special rights and benefits as follows:

(1) exemption of import duties on the raw and essential materials imported for use specifically in producing, mixing, or assembling products or commodities for export;
(2) exemption of import duties on items which the promoted person imports for re-export;
(3) exemption of export duties on products or commodities which the promoted person produces or assembles;
(4) permission to deduct from the assessable income for payment of juristic person income tax an amount equal to five percent of the increased income over the previous year, derived from the export of products or commodities produced or assembled by the promoted person, exclusive of overseas insurance and freight charges.

The foregoing shall be in accordance with such conditions, procedure and periods of time as shall be prescribed by the BOI (Section 36).

Non-Tax-Based Incentives

Other incentives of BOI promotion which non-tax-based incentives are;

(1) Permit for foreign nationals to enter the Kingdom for the purpose of studying investment opportunities (Section 24).
(2) Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities. Also spouses of suchs workers and experts (Section 25 and 26).
(3) Permit to own land in order to carry on the promoted activity to such an extent as the Board deems appropriate, even in excess of the permissible limit under other laws (Section 27).
(4) Permit to take out or remit money abroad in foreign currency (Section 37).


BOI provides foreigners with incentives to invest in Thailand and offers various advantages according to promotion policies which are always improving to be in line with the world economy. Importantly, when BOI promotion has been approved, all incentives will be subject to conditions, procedures and periods of time which will be prescribed by BOI promotion certificate. In the case where a promoted person violates or fails to comply with the conditions stipulated by the BOI, advantages in total or in part may be withdrawn.

If you are in need of a business lawyer, We Can help. Any questions about BOI promotion are always welcome.


1 Investment Promotion Act B.E. 2520 (1977), amended by Investment Promotion Act (no. 2) B.E. 2534 (1991), Investment Promotion Act (no. 3) B.E. 2544 (2001) and Investment Promotion Act (no. 4) B.E. 2560 (2017).