Thailand BOI

Thailand BOI - Information

NNP Group is a Thailand based consulting firm specialized in preparing BOI applications for foreign businesses investing in Thailand.

If you are considering a significant investment in Thailand, then you should inquire whether your investment is eligible for Thailand Board of Investment ("BOI") privileges.

The BOI has the power to grant some or all of the following privileges depending on the promoted activity and investment zone:

  • Exemption from rules restricting foreign ownership of companies;
  • Exemption from corporate income tax for up to 8 years;
  • Exemption of import duties on machinery and raw materials;
  • Exemption from rules restricting foreign ownership of land;
  • Exemption from work permit and visa rules; and
  • Exemption from rules restricting overseas remittances.
The degree of tax and duty privileges given to investors by the BOI depends on the location of the business of the investor.  Maximum tax and duty privileges are provided in regions with low income and inadequate investment facilities.

Thailand BOI – Investment Zones

There are three Investment Zones divided by economic factors including level of income and the availability of infrastructure as follows:

Zone 1 - High Income and Infrastructure

  • Bangkok, Samut Prakan, Samut Sakhon, Pathum Thani, Nonthaburi and Nakhon Pathom
Privileges:
  • 50 per cent reduction of import duty on machinery that is subject to import duty of not less than 10 percent;
  • Corporate income tax exemption for 3 years for projects located within industrial estates or promoted industrial zones, provided that such a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year; and 
  • Exemption of import duty on raw or essential materials used in the manufacturing of export products for 1 year.
Zone 2: Moderate Income and Infrastructure
  • Samut Songkhram, Ratchaburi, Kanchanaburi, Suphanburi, Ang Thong, Ayutthaya, Saraburi, Nakhon Nayok, Chachoengsao, Chon Buri, Rayong and Phuket
Privileges:
  • 50 per cent reduction of import duty on machinery that is subject to import duty of not less than 10 per cent;
  • Corporate income tax exemption for 3 years, increased to 5 years for projects located within industrial estates or promoted industrial zones, provided that such a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year; and
  • Exemption of import duty on raw or essential materials used in the manufacturing of export products for 1 year.
Zone 3 Low Income and Infrastructure
  • All other Thailand provinces not mentioned above.
Privileges:
  • Exemption of import duty on machinery;
  • Corporate income tax exemption for 8 years provided that a project with capital investment of 10 million baht or more (excluding cost of land and working capital) obtains ISO 9000 or similar international standard certification within 2 years from its start-up date, otherwise the corporate income tax exemption will be reduced by 1 year; and
  • Exemption of import duty exemption on raw or essential materials used in the manufacturing of export products for 5 years.
A project located in one of the following 36 provinces: Krabi, Kamphaeng Phet, Khon Kaen, Chanthaburi, Chai Nat, Chumphon, Chiang Rai, Chiang Mai, Trang, Trat, Tak, Nakhon Ratchasima, Nakhon Si Thammarat, Nakhon Sawan, Prachuab Khiri Khan, Prachin Buri, Phangnga, Phattalung, Pichit, Phitsanulok, Phetchaburi, Phetchabun, Mukdahan, Mae Hong Son, Ranong, Lop Buri, Lamphang, Lamphun, Loei, Songkhla, Sa Kaew, Sing Buri, Sukhothai, Surat Thani, Uttaradit, and Uthai Thani shall be granted additional tax and duty privileges as follows:

Project Inside Industrial Zones
  • 50 per cent reduction of corporate income tax for 5 years after the exemption period;
  • Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activity;
Project Outside Industrial Zones
  • Deduction can be made from net profit of 25 per cent of the project's infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.
A project located in one of the following 22 provinces: Chaiyaphum, Kalasin, Nakhon Phanom, Narathiwat, Nan, Nong Khai, Buri Ram, Pattani, Phayao, Phrae, Maha Sarakham, Yasothon, Yala, Roi Et, Si Sa Ket, Sakhon Nakhon, Sathun, Surin, Nong Bualamphu, Amnat Charoen Udon Thani, and Ubon Ratchathani shall be granted additional tax and duty privileges privileges as follows:
  • 50 per cent reduction of corporate income tax for 5 years after the exemption period;
  • Double deduction from taxable income of transportation, electricity and water costs for 10 years from the date of first revenue derived from promoted activities; 
  • Deduction can be made from net profit of 25 per cent of the project's infrastructure installation or construction cost for 10 years from the date of first sales, and net profit for one or more years of any year can be chosen for such deduction. The deduction is additional to normal depreciation.

Thailand BOI - Promoted Activities

The Thailand BOI promotes activities under the following BOI categories:

Agriculture & Agricultural Products

  1. Plant propagation or seed grading;
  2. Hydropincis cultivation;
  3. Manufacture of biological and organic fertilizers;
  4. Animal breeding;
  5. Livestock and aquatic aninmal husbandry (except shrimp);
  6. Manufacture of animal feed or mixes for animal feed;
  7. Crop drying and silo facilities;
  8. Deep sea fishery;
  9. Slaughtering;
  10. Tanneries, leather finishing or fur dressing;
  11. Manufacture or preservation of food or food ingredients using modern technology (except drinking water, candy and ice cream);
  12. Manufacture of oil or fat from plants or animals;
  13. Grading, packaging and storage of plants vegetables, fruits or flowers using modern technology;
  14. Manufacture of natural rubber products;
  15. Manufacture of dextrin or modified starch;
  16. Manufacture of products from agricultural by-products or waste;
  17. Cold storage;
  18. Trading centers for agricultural goods;
  19. Agro-industry processing zones;
  20. Manufacture of products from herbs (except soap, shampoo, toothpaste and cosmetics);
  21. Inspection, analysis and certifying of quality standards of agricultural products;
  22. Inspection and analysis of diseases of crops livestock or aquatic animals;
  23. Inspection and analysis of soil or water for agriculture usage;
  24. Forestry plantation;
  25. Manufacture of products made from parawood;
  26. Manufacture of alcohol or fuel from agricultural products including scrap, garbage and/or waste;
  27. Farm management;
  28. Production of packaging material of food packages;
  29. Cold-storage transportation; and
  30. Climate controlled silos.
Mining, Ceramics & Basic Metals
  1. Mineral ore prospecting;
  2. Mining or ore dressing (except tin);
  3. Marble or granite mining;
  4. Manufacture of ceramic products;
  5. Manufacture of glass or glass products;
  6. Smelting;
  7. Manufacture of metal powder;
  8. Manufacture of ferro-alloy;
  9. Manufacture of down-steam intermediate steel;
  10. Manufacture of up-stream steel products;
  11. Manufacture of steel pipes or stainless steel pipes;
  12. Manufacture of iron or steel casting;
  13. Manufacture of forged steel parts;
  14. Rolling, drawing, casting or gorging of nonferrous metals;
  15. Manufacture of fire-resistant materials or heat insulation;
  16. Manufacture of ceramic roof tiles;
  17. Manufacture of gypsum board or gypsum products;
  18. Coil center;
  19. Manufacture of textile products or parts;
  20. Production related to the gem and jewelry industry;
  21. Manufacture of products from leather or artificial leather;
  22. Manufacture of shoes or parts;
  23. Manufacture of sport equipment or parts;
  24. Manufacture of toys;
  25. Manufacture of artificial flowers, trees and other artificial goods;
  26. Manufacture of lenses or spectacles or parts;
  27. Manufacture of medical supplies or medical equipment;
  28. Manufacture of stationery or parts;
  29. Manufacture of furniture or parts;
  30. Manufacture of luggage or parts;
  31. Manufacture of sanitary napkins and absorbing pads;
  32. Manufacture of scientific equipment;
  33. Manufacture of trawling nets; and
  34. Manufacture of abrasive paper.
Metal Products, Machinery & Transport Equipment
  1. Manufacture of hand tools and measuring tools;
  2. Manufacture of machinery and equipment;
  3. Manufacture of metal products including metal parts;
  4. Building or repair of steel ships of not less than 500 tons gross;
  5. Building of ships of less than 500 tons gross (except wooden or steel ships);
  6. Manufacture of trains or electric trains or parts (only with rail system);
  7. Manufacture or repair of aircraft including parts or onboard equipment;
  8. Manufacture of vehicle parts;
  9. Manufacture of 4-stroke motorcycles;
  10. Automobile assembly;
  11. Metal surface treatment or anodized surface treatment;
  12. Heat treatment;
  13. Manufacture of electric-powered vehicles or parts;
  14. Manufacture of 4-stroke motorcycles engines;
  15. Manufacture of automobile engines;
  16. Manufacture of multi-purpose engines;
  17. Repair of industrial machinery;
  18. Manufacture of metal containers;
  19. Fabrication of metal structural products or metal industrial equipment;
  20. Manufacture of air or gas compressors;
  21. Manufacture, repair, maintenance and refurbishing of containers;
  22. Repair of vehicle parts, electrical or electronic equipment;
  23. Automobile manufacturing;
  24. Manufacture of energy-conserving machinery or equipment or manufacture of machinery or equipment which uses alternative energy;
  25. Manufacture of fuel cells;
  26. Manufacture of engines, machinery and accessories for natural gas vehicles; and
  27. Assembly of natural gas vehicles.
Electronic Industry & Electrical Appliance
  1. Manufacture of electrical equipment for industrial use;
  2. Manufacture of electrical products;
  3. Manufacture of parts or equipment for electrical products;
  4. Manufacture of electronic products;
  5. Manufacture of parts or supplies used for electronic apparatus;
  6. Manufacture of material for micro-electronics;
  7. Electronic design;
  8. Software;
  9. E-commerce business; and
  10. Integrated production of electronic products, electrical appliances or parts.
Chemicals, Paper & Plastics
  1. Manufacture of basic chemicals;
  2. Manufacture of other chemicals;
  3. Manufacture of fertilizers;
  4. Manufacture of pesticides or herbicides;
  5. Manufacture of petrochemicals;
  6. Oil refineries;
  7. Manufacture of dyes and pigments (except paints);
  8. Manufacture of medicine and/or active ingredients in medicine;
  9. Manufacture of plastic or plastic coated products;
  10. Manufacture of pulp;
  11. Manufacture of paper;
  12. Manufacture of paper containers or boxes;
  13. Manufacture of fiber, pulp, paper or paperboard articles;
  14. Production of printed matter;
  15. Manufacture of body care products; and
  16. Manufacture of high-purity or precision-blended gas.
Service & Public Utilities
  1. Public utilities and basic services (production of electricity or steam power, waterworks or water supply for industry, concession roads, loading/unloading facilities for sea transport, commercial airports, commercial airports, satellite telecommunications, telephone services, gas separation plants);
  2. Mass transit systems and transportation of bulk goods (Mass transit electric trains and commercial trains services with rail systems, pipeline transportation, air transportation services, maritime transportation services, ferry services, high power ship services);
  3. Tourism promotion services (ocean marina services, tour boat or yacht renting, amusement parks, cultural centers, aquariums, racing tracks, open zoos, cable cars)
  4. Activities to support tourism (convention halls, international exhibition centers, hotels);
  5. Real estate development for industrial use (industrial zones, factory development for industrial plants, bonded warehouse for free trade zones, software parks);
  6. Gem and jewelry industrial zones;
  7. Industrial zones for environmental preservation (bleaching and drying, tanneries, metal surface treatment or anodize surface treatment);
  8. Printing industrial zone;
  9. Movie town;
  10. Distribution centers;
  11. International distribution centers;
  12. International procurement offices;
  13. Trade and investment support offices;
  14. Hospitals, retirement homes and care centers and dedicated health centers;
  15. Research and development;
  16. Scientific laboratories;
  17. Calibration services;
  18. Human resource development (education institutes or vocation training centers, international schools, hotel training institutes, maritime training institutes)
  19. Waste water treatment, disposal services of refuse, industrial waste or toxic chemicals;
  20. Thai motion picture production, motion picture supporting services or multimedia services;
  21. Products sterilization services;
  22. Medium or low income housing;
  23. Coating or thickening of pipes for petroleum;
  24. Recycling and the reuse of unwanted materials;
  25. Business process outsourcing;
  26. Product design;
  27. Design centers;
  28. Science and technology parks;
  29. International trading companies;
  30. Long stay businesses;
  31. Energy service companies; and
  32. Natural gas service stations for vehicles.
Note this is NOT the official Thailand BOI website and you are not required to use the services of a BOI consultant when submitting an application to the Thailand BOI.  The official Thailand Board of Investment website can be found at www.boi.go.th