BOI Thailand – FAQs
Below are some frequently asked questions about applying for and benefiting from promotion through the Thailand Board of Investment (BOI). These answers help clarify key points about eligibility, incentives, foreign ownership, and project requirements.
What types of activities can be promoted under BOI?
The BOI accepts investment promotion applications for business activities that align with Thailand’s economic priorities. For example, digital platforms for services like P2P payment systems can qualify under digital services categories if they meet minimum capital and specialist staffing requirements.
What benefits does BOI promotion provide?
- Corporate income tax exemption for a defined period
- Exemption of import duties on machinery
- Exemption of import duties on raw materials used in R&D or export-production
- Non-tax incentives such as foreign ownership privileges and facilitated work permits
These basic incentives can be supplemented with merit-based incentives such as additional tax breaks for projects in specific regions or industrial zones.
Are there rules on foreign shareholding for BOI-promoted projects?
Yes. The criteria depend on how the activity is classified under the Foreign Business Act:
- If the activity appears in List One under the Foreign Business Act, Thai shareholders must hold at least 51% of the registered capital.
- If the activity is in List Two or List Three, there are generally no equity restrictions on foreign ownership, unless other laws impose limits.
- The BOI Board may also set specific foreign ownership limits for certain promoted activities as needed.
What are essential criteria for a BOI investment project?
To be eligible for promotion, a project typically must meet conditions such as:
- Sufficient value-added creation relative to revenue (often a minimum percentage depending on sector)
- Use of modern production processes
- Employment of new machinery or technology
- For projects with large capital (e.g., 10 million THB or more, excluding land and working capital), certification to international quality standards such as ISO may be required within a set period
How does BOI handle environmental and project feasibility requirements?
Projects often need to demonstrate environmental protection measures and adequate processes to minimize impact. They must also show that investment capital and project design are viable. For high-investment projects, a detailed feasibility study may be required.