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BOI or EEC, Which is Best for your Business in Thailand?
23/09/2024
Thailand continues to develop its position as a leading destination for foreign investment. At the centre of this initiative is the Board of Investment (BOI), a key part of the Thai government’s strategy to attract foreign investment. The BOI offers highly attractive incentives, including 100% foreign ownership, tax benefits, and streamlined visa and work permit processes for foreign experts to projects who have obtained a BOI promotion.
Building and expanding on this success, the Thai government introduced a new project which compliments the BOI, the Eastern Economic Corridor (EEC). The EEC aims to further develop the country’s economic growth and attract an even wider range of foreign investments. Much like the BOI, 100% foreign ownership, tax incentives and visa and work permit support is available to EEC promoted companies.
While the BOI and EEC share some common goals, they each offer unique advantages for different types of businesses. In this article, we’ll explore both agencies and help you determine which promotion – BOI or EEC – might be the best fit for your investment plans in Thailand.
Key points
- The Board of Investment (BOI) and Eastern Economic Corridor (EEC) are two Thai government initiatives designed to attract foreign investment.
- BOI offers incentives like 100% foreign ownership, tax benefits, and streamlined visa processes for a wide range of industries across Thailand.
- The EEC focuses on high-tech industries in specific provinces, offering similar benefits to BOI including 100% foreign ownership.
- BOI has broader eligibility criteria and geographical coverage compared to EEC’s more limited scope and location.
- Choice between BOI and EEC depends on the business activity, intended location, and specific incentives required.
What is the BOI?
Thailand’s Board of Investment is a special government agency that focuses on promoting foreign investment within Thailand. A BOI promotion removes many barriers to doing business in Thailand, such as the restrictions of the Foreign Business Act.
More detailed information relating to the Foreign Business Act can be found here.
Furthermore, the BOI provides the following incentives for qualifying projects that could offer significant advantages to qualifying companies.
For more information about the BOI, please check the following blog posts:
BOI Company Formation in Thailand
What Benefits are Offered by the BOI?
The incentives offered by the BOI are one of the main selling points for investors considering Thailand as a location for their business. The Board of Investment (BOI) has designed a wide ranging package of incentives to encourage both foreign and domestic investment in priority sectors that align with Thailand’s economic development goals.
Benefits include:
- 100% Foreign Ownership
- Visa and Work Permit Benefits
- Streamlined visa and work permit processes for foreign employees:
- Land Ownership Privileges
- Foreign Business certificate allowing foreign owned companies to engage in restricted activities
Tax Incentives include:
- Corporate Income Tax Exemptions (up to 8 years)
- Import Duty Reductions
- Exemption from import duties on machinery
- Exemption or reduction of import duties on raw and essential materials for manufacturing export products
Please note, tax incentives are awarded on the discretion of the BOI and depend on each individual application.
For a more detailed look at the incentives on offer from the BOI for eligible projects, please see our blog post here.
Is your business eligible for a BOI promotion in Thailand?
The BOI actively offers promotions over a wide variety of different business activities and industries. There is a common misconception that the BOI is only available for high level projects, which is not the case. BOI promotions can be obtained for activities such as manufacturing, agriculture, software, digital, services, machinery, etc. Any potential business whose business activities don’t satisfy these criteria may be eligible for a TISO promotion instead. The TISO promotion is often fondly referred to as the ‘catch-all’ promotion due to its wide scope and accessibility to companies.
For more information about the business activities eligible for a BOI Promotion, please see our blog post here.
To find out whether your business is eligible for a BOI promotion in Thailand, why not book a consultation with one of our experts. During this consultation we will be able to explain the BOI, how the application works and identify whether your project may be eligible to apply. Consultations can be booked here.
What is the EEC?
The Eastern Economic Corridor (EEC) is a special economic zone that operates in the following Thai provinces, Chachoengsao, Chonburi, and Rayong. The EEC was designed to help push the “Thailand 4.0″ economic model”, which looks to move the Thai economy into a high-tech, value-based economy.
What Business Activities are Eligible for a Promotion from the EEC?
While the BOI offers a broad range of promotions spanning across many different industries, the EEC is much more limited in scope. Eligibility for the EEC is only available to Thailand 4.0 policy’s vision of fostering advanced industries. The EEC is available for companies within the following sectors:
The new next-generation sectors:
- next-generation automotive,
- intelligent electronics,
- advanced agriculture and biotechnology,
- food for the future,
- high-value and medical tourism, and digital technologies,
- Automation and robotics,
- Aviation and logistics
- Biofuel and biochemical
- Defence
- Education & HR
What Benefits are Offered by the EEC?
Eligible projects within the EEC are eligible for the following attractive incentives:
- 100% foreign ownership of a company
- corporate tax exemptions of up to 15 years,
- exemption from import duties,
- matching grants, and
Foreign employees who work for companies that have been granted a promotion from the EEC are also eligible for the EEC visa which has the following benefits:
- All EEC visa holders will be granted a work permit
- A flat Personal Income Tax Rate of 17% (instead of the progressive rate up to 35%).
- 10 Year validity
- Multiple entry visa
- Use of the Fast-Track Channel at selected airports.
Comparison Between the BOI and EEC
The BOI and the EEC both share a lot of the same characteristics and benefits, however, which is most suitable for your business depends on your proposed business activities and the intended location of your business.
The EEC is much more limited in scope in that it focuses on very specific activities and is only available within 3 provinces. The BOI on the other hand is available to projects throughout Thailand and even offers additional benefits to projects active in less developed provinces. The BOI also has a much wider scope of eligibility, meaning more projects and business activities will be eligible for a promotion.
Both the BOI and EEC offer highly beneficial benefits and opportunities for foreign investors, if you would like to receive more detailed information, or establish whether your project is eligible for one or either of these promotions, please book a consultation with our experts.
For an overview of the similarities and differences between the BOI and EEC, please take a look at the following table.
| Board of Investment | Eastern Economic Corridor | |
| 100% Foreign Ownership | Yes | Yes |
| Eligible Business Activities | Available across a wide variety of industries and activities | Limited to the new next-generation sector |
| Tax Benefits | Corporate Tax Exemptions for up to 8 years (certain cases up to 13 years)
Duty-Free Import of Machinery *Tax incentives are awarded at the discretion of the BOI and are not awarded to all promotions. |
Corporate tax exemptions of up to 15 years,
Duty-Free Imports A reduced personal income tax rate of 17%. |
| The ability to hire foreign employees | Reduced requirements and removal of quotas. Ability to use the One Stop Service Center for visa and work permit applications |
Foreign employees are eligible for the EEC visa which offers a smooth application process similar to the BOI. The EEC also comes with a Work Permit for holders.
The EEC visa is also not subject to the 4:1 Thai Employee ratio and capital requirements. |
| Land ownership | Yes | Yes |
| Undertake restricted activities for foreign companies | Yes | Yes |
How can Belaws help?
For more information about the BOI or EEC in Thailand why not talk to one of our experts now?
Please note that this article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of up to 1 hour and are conducted by expert Lawyers who are fluent in English, French and Thai.
Consultations can be hosted via WhatsApp or Video Conferencing software for your convenience. A consultation with one of our legal experts is undoubtedly the best way to get all the information you need and answer any questions you may have about your new business or project.
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Frequently asked questions
What are BOI and EEC?
BOI (Board of Investment) and EEC (Eastern Economic Corridor) are Thai government initiatives designed to attract foreign investment. BOI offers incentives for various industries across Thailand, while EEC focuses on high-tech industries in specific provinces
Can foreigners own 100% of a company in Thailand through BOI or EEC?
Yes, both BOI and EEC promotions allow 100% foreign ownership of companies in Thailand, bypassing restrictions of the Foreign Business Act
What tax benefits do BOI and EEC offer?
BOI offers corporate income tax exemptions for up to 8 years and import duty reductions. EEC provides corporate tax exemptions for up to 15 years and duty-free imports
Which provinces are part of the EEC?
The EEC operates in three Thai provinces: Chachoengsao, Chonburi, and Rayong
Is my business eligible for BOI promotion?
BOI promotions are available for a wide range of activities including manufacturing, agriculture, software, digital services, and more. Even businesses that don’t fit standard criteria may be eligible for a TISO (Trade and Investment Support Office) promotion
What industries does the EEC focus on?
EEC focuses on next-generation sectors such as automotive, intelligent electronics, advanced agriculture, biotechnology, high-value tourism, digital technologies, automation, robotics, aviation, logistics, biofuel, biochemical, defense, and education
Are there visa benefits for foreign employees under BOI or EEC?
Yes, both offer streamlined visa and work permit processes. EEC visa holders get additional benefits like a flat 17% personal income tax rate and a 10-year validity
Which is better for my business, BOI or EEC?
The choice depends on your business activity, intended location, and specific incentives required. BOI has broader eligibility and geographical coverage, while EEC is more focused on high-tech industries in specific provinces
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