Introduction
Thailand is widely recognized as a favorable destination for business, supported by its strong international rankings. The World Bank’s 2019 Ease of Doing Business (EODB) report awarded Thailand a score of 78.45, placing it 27th globally. Additionally, the Swiss-based International Institute for Management Development (IMD) ranked Thailand 25th in its 2019 World Competitiveness Index, and the United Nations placed Thailand first in Southeast Asia for sustainable development.
One of the key factors driving Thailand’s business-friendly environment is the Board of Investment (BOI). Established in 1966, the BOI is a government agency responsible for promoting both domestic and international investment in Thailand. This article outlines the benefits, policies, and incentives offered by the BOI to support businesses looking to establish operations in Thailand.
BOI Policies & Objectives
The BOI plays a crucial role in facilitating foreign investment by:
- Promoting investment policies under the Investment Promotion Act (No. 2 B.E. 2534, No. 3 B.E. 2544, and No. 4 B.E. 2560).
- Maintaining a presence in major international cities such as Osaka, Beijing, Stockholm, Taipei, Sydney, Frankfurt, Los Angeles, Mumbai, and Paris.
- Offering strategic incentives to attract investment in key industries that align with Thailand’s long-term economic goals, such as Thailand 4.0.
Through these policies, the BOI aims to enhance Thailand’s competitiveness, support innovation, and drive sustainable economic growth.
BOI Incentives for Foreign Businesses
Tax Incentives
The BOI provides attractive tax benefits to eligible businesses, including:
- Corporate income tax exemptions for up to 13 years.
- Exemptions or reductions in import duties on machinery and raw materials.
- Additional tax benefits for businesses engaged in research, development, and innovation.
Non-Tax Incentives
Beyond tax benefits, the BOI also offers non-tax incentives, such as:
- 100% foreign ownership for most business activities.
- Land ownership rights for BOI-promoted companies.
- Work permits and visas facilitated through a One-Stop Service Center.
- Streamlined regulatory approvals and business setup processes.
These incentives make Thailand an attractive destination for companies looking to expand their operations in Asia.
BOI-Supported Business Activities
The BOI categorizes businesses into different priority levels for investment incentives. Below are the main industries that receive BOI support:
1. High-Value Knowledge-Based Industries
- Research and development (R&D)
- Innovation-driven businesses
- Advanced technology sectors (e.g., biotechnology, digital tech, nanotechnology)
2. Infrastructure & Value-Added Industries
- Smart city development
- Renewable energy and environmental conservation
- Advanced manufacturing
3. Strategic and High-Tech Sectors
- Automotive and electric vehicles (EVs)
- Robotics and automation
- Aerospace and defense technology
4. Industries Strengthening the Domestic Supply Chain
- Agro-industries and food processing
- Petrochemical and chemical industries
- Healthcare and medical innovation
5. Supporting & Service-Based Industries
- Digital services and software development
- Logistics and distribution hubs
- International business centers (IBCs)
Businesses engaged in these activities can benefit from BOI incentives, making Thailand a hub for innovation and industry development.
BOI Support Services
The BOI goes beyond offering incentives by actively assisting businesses in their setup and operations. Services provided by the BOI include:
- Investment Consultation: Guidance on available incentives, regulations, and business setup procedures.
- Government Liaison: Facilitating communication between businesses and relevant government agencies.
- Talent Recruitment Support: Connecting companies with skilled professionals through the BOI Strategic Talent Center (STC).
- One-Stop Service for Work Permits and Visas: Simplifying the process of obtaining work permits and visas for foreign employees.
- Business Matching Services: Helping foreign investors find local partners and suppliers.
These services make it easier for foreign businesses to establish and operate efficiently in Thailand.
Conclusion
The Board of Investment (BOI) plays a pivotal role in making Thailand an attractive investment destination. With its extensive tax and non-tax incentives, support services, and commitment to economic growth, the BOI helps businesses navigate regulatory requirements and maximize their potential in Thailand.
For companies looking to expand into Thailand, understanding BOI policies and incentives is crucial. If you need expert assistance in setting up your business and making your first hire, consider partnering with Aster Lion, a trusted Employer of Record (EOR) in Thailand.
For further insights into Thai labor regulations, check out our article on Navigating Thai Labor Law.
