What Is BOI? Investment Promotion Privileges for Foreign Investors in Thailand

In short
BOI (Thailand’s Board of Investment) grants qualifying projects a package of privileges under the Investment Promotion Act. The core ones are corporate income tax exemption (Section 31), dividends also being exempt during the tax-holiday period (Section 34), import-duty exemption on machinery (Section 28), the right to hold project land above the normal limit (Section 27), bringing in foreign experts (Section 25), and remitting profits abroad (Section 37). Many BOI categories can also go beyond the foreign-shareholding limits of the Foreign Business Act.

1. What is the BOI?

The BOI (Board of Investment, the Investment Promotion Committee) approves “promoted projects” under the Investment Promotion Act. A company that obtains a promotion certificate is a “promoted person” (Section 4) and enjoys the package of rights below.

2. Tax privileges

  • Corporate income tax exemption (Section 31): net profit from the promoted business is exempt from corporate income tax, calculated in proportion to the invested capital, and the length of the exemption is as announced by the BOI (depending on the category and the project).
  • Dividend exemption (Section 34): during the corporate income tax exemption period, dividends distributed from the promoted business are exempt from being included in the income tax calculation.
  • Deduction of the investment amount where no exemption applies (Section 31/2): where a promoted person does not receive the exemption, the BOI may permit the investment spending to be deducted from taxable net profit.
  • Import duties: exemption from import duty on machinery (Section 28); import duty on raw materials or necessary materials used in production may be reduced by up to 90% (Section 30).

3. Non-tax privileges

  • Land ownership (Section 27): a promoted person may own land for the promoted business, in the amount the BOI deems appropriate, even if it exceeds the limit foreigners may generally hold.
  • Bringing in foreign talent (Section 25): the promoted person may bring in skilled workers, experts, and their spouses and dependents, with facilitation for entry into the Kingdom (Section 24) and work permits (Section 26).
  • Remittance of funds (Section 37): a promoted person or investor domiciled outside the Kingdom may remit the capital brought in, dividends and the like out of the Kingdom in foreign currency.
  • State guarantees: the State will not nationalize the business (Section 43), will not set up a new business to compete with it (Section 44), and will not monopolize the sale of the same kind of products (Section 45).

4. How to apply

Submit a request for promotion together with the investment project to the BOI according to the prescribed criteria, procedures and forms (Section 17). The BOI reviews the project for its economic and technological appropriateness (Section 18) and sets, in the promotion certificate, the conditions to be complied with (Section 20). If the conditions are not met, the BOI has the power to revoke the rights and benefits already granted (Section 54).

⚠️ The exemption period and foreign-ownership ratio must be confirmed case by case

Exactly which privileges apply, the corporate income tax exemption period, and the permitted foreign-shareholding ratio depend on the BOI’s category announcements and your specific project, and must be read together with the Foreign Business Act — they must be confirmed case by case.

FAQ

Can a BOI project be 100% foreign-owned?

Many BOI promotion categories let you go beyond the general foreign-shareholding limits of the Foreign Business Act, allowing a higher ratio or even full foreign ownership, but this is subject to the official rules — the BOI’s category announcements and the Department of Business Development (DBD) rules (we can help confirm).

How many years is the BOI corporate income tax exemption?

The Investment Promotion Act, Section 31, provides for exemption from corporate income tax, but the number of years is “as announced by the BOI” and depends on the promotion category and the project — it is not a fixed figure.

Does the BOI exemption cover personal income tax?

No. What is exempt is corporate income tax (Section 31), together with dividends distributed during the exemption period (Section 34).

What do you need to apply for BOI?

Submit a request for promotion together with the investment project to the BOI (Section 17); the BOI then reviews it for economic and technological appropriateness (Section 18).