Investment Incentives of the Thai Government

Investment incentives provided by the Industrial Estate Authority of Thailand (IEAT)

Legal incentives for enterprises located in industrial zones

Investment incentives provided by the Thailand Board of Investment (BOI)

The Board of Investment provides investment promotion incentives to legally qualified enterprises.

Incentives vary geographically across three main zones:

Zone 1 – The area around Bangkok. This zone offers the least incentives.
Zone 2 – Industrial areas in the outskirts of Bangkok. Amata Nakorn Industrial Estate is located in Zone 2, 57 km from Bangkok.
Zone 3 – Areas remote from Bangkok. Amata City Industrial Estate is located in Zone 3, 114 km from Bangkok.

Government Incentives for Investors in BOI Investment Zone 1

BOI Incentives:

Corporate income tax exemption for 3 years
No 50% corporate income tax reduction
Reduction of import duties on machinery by at least 50% (minimum rate 10%)
Exemption from import duties on raw materials used in export production for 1 year
Right to employ skilled foreign specialists and workers, including their spouses
Right for foreign investors to own land

IEAT Incentives:

Right for foreign investors to own land
Right to employ skilled foreign specialists and workers, including their spouses
Right to remit funds in foreign currency

Government Incentives for Investors in BOI Investment Zone 2 (Amata Nakorn)

BOI Incentives:

Corporate income tax exemption for 7 years
No 50% corporate income tax reduction
100% exemption of import duties on machinery
No exemption on import duties for raw materials used for export
No 75% reduction on import duties for raw materials for domestic use
Right to employ skilled foreign specialists and workers, including their spouses
Right for foreign investors to own land

IEAT Incentives:

Right for foreign investors to own land
Right to employ skilled foreign specialists and workers, including their spouses
Right to remit funds in foreign currency

Government Incentives for Investors in BOI Investment Zone 3 (Amata City)

BOI Incentives:

Corporate income tax exemption for 8 years
50% reduction in corporate income tax (additional 5-year period)
100% exemption of import duties on machinery
Exemption from import duties on raw materials for export production for 5 years
75% reduction of import duties on raw materials for domestic use for 5 years
Double deduction of costs for water, electricity, and transportation for 10 years from first revenue
Permission to retain up to 25% of net profit for project infrastructure or construction costs
Right to employ skilled foreign specialists and workers, including their spouses
Right for foreign investors to own land

IEAT Incentives:

Right for foreign investors to own land
Right to employ skilled foreign specialists and workers, including their spouses
Right to remit funds in foreign currency

Note:
Projects with investment capital of 10 million baht or more (excluding land and working capital) must obtain ISO 9000 or an equivalent international certification within two years from the start date. Otherwise, the corporate income tax exemption period will be reduced by one year.