The Thai government, through the Board of Investment (BOI) and the Industrial Estate Authority of Thailand (IEAT), offers a wide range of incentives for foreign investors. The scope and conditions of these incentives depend on two key factors: the type of business activity and the location of the company.
Business Activities Supported by the BOI
- Agriculture and agricultural products
- Mining, ceramics, and basic metals
- Light industry
- Metallurgy, machinery, and transport equipment
- Electronics and electrical appliances
- Chemicals, paper, and plastics
- Services and public utilities
Business Requirements
- Added value must be at least 20% of total revenue from goods or services
- Use of modern production processes and new technologies
- Implementation of effective environmental protection systems
Incentives Provided by the BOI
Tax Incentives
- Corporate income tax and dividend tax exemption for up to 8 years
- 50% reduction of corporate income tax for up to 5 years
- Exemption or reduction of import duties on machinery
- Reduction of import duties on raw materials
- Double deduction of transportation, electricity, and water costs
- Additional 25% deduction for installation or construction expenses
- Exemption of import duties on raw materials used for export production
Non-Tax Incentives
- Permission to enter Thailand to explore investment opportunities
- Land ownership rights for foreign investors
- Simplified visa procedures and work permit process for skilled specialists
- Ability to remit funds in foreign currency
Priority Sectors
The following sectors receive the highest level of support and incentives:
- Knowledge-based industries, especially research & development (R&D) and design, enhancing national competitiveness
- Infrastructure development and activities using advanced technologies to create unique added value
- High-tech industries critical to national development with limited existing competition
One Start — One Stop Investment Center (OSOS)
Companies promoted by the BOI can access services of the One Start — One Stop Investment Center (OSOS), created to simplify legal and administrative procedures for investors, including company registration, licensing, and employment of foreign staff.
OSOS services include:
- Assistance with business negotiations
- Simplification and acceleration of registration procedures
- Coordination between various government agencies
- Support with applications for:
- Company registration
- Investment incentives
- Foreign business licenses
- Environmental Impact Assessment (EIA) reports
- Land use permits for industrial purposes
Industrial Estate Authority of Thailand (IEAT)
The Industrial Estate Authority of Thailand (IEAT) is responsible for the development of industrial zones designed for manufacturing facilities.
Establishing operations within industrial estates simplifies the process of setting up production facilities, provides ready-to-use infrastructure, and grants access to additional incentives available to businesses operating within these zones.