BOI incentives, guarantees and protection

Under the current legal and policy framework, the BOI Thailand Board of Investment may grant – depending on certain requirements and smart negotiations – the following incentives, guarantees, and protection to foreign direct investments in Thailand:

A. BOI Incentives

I. Tax incentives

  1. Exemption or reduction of import duties on machinery.
  2. Reduction of import duties on raw or essential materials.
  3. Exemption of juristic person’s income tax and dividends.
  4. A 50% reduction of the juristic person’s income tax.
  5. Double deductions from the costs of transportation, electricity and water supply.
  6. Additional 25% deduction of the cost of installation or construction of facilities.
  7. Exemption of import duty on raw or essential materials for use in production for export.

II. Non-tax incentives

  1. Permit for foreign nationals to enter Thailand for the purpose of studying investment opportunities.
  2. Permit to bring skilled workers and experts into Thailand to work in investment promoted activities.
  3. Permit to own land in order to carry on the promoted activity to such an extent as the BOI deems appropriate.
  4. Permit to take out or remit money abroad in foreign currency.

B. BOI Guarantees

  1. Thailand will not nationalize the activity of the promoted person.
  2. Thailand will not undertake a new activity in competition with the promoted people.
  3. Thailand will not monopolize the sale of products similar to the promoted people.
  4. Thailand will not impose price controls on the products of the promoted person’s.
  5. Thailand will grant permission to export at all times.
  6. Thailand will not allow any government agency, government organization or state enterprise to import any kind of the product being produced by the promoted person into Thailand by granting import duty exemption.

C. BOI Protection

  1. To charge extra import fees into Thailand on products similar to those produced by the promoted person at a rate not exceeding 50% of the price of overseas insurance and freight charges, effective for not more than one year.
  2. In the case of where the BOI is of the opinion that Set. C.1 above is inadequate for protecting the activity of the promoted person; it will increase the measure by banning the import of products similar to the local productions.
  3. In the case where the promoted person encounters any problem or obstacles in the course of carrying out the promoted activity, the BOI will have the power to render any appropriate assistance.

All updates on the investment promotion of the Thailand BOI at https://pugnatorius.com/category/boi/

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