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Discover the Qualifying Business Activities for a BOI Promotion in Thailand
10/08/2023
When starting a business in Thailand, seeking a promotion from the Board of Investment (BOI) is strongly advised. The BOI’s primary objective as an official government entity is to draw in foreign investments by providing distinct advantages and perks not available to ordinary companies. These benefits include 100% foreign ownership, tax relief, simplified visa procedures, and additional privileges. Attaining a BOI promotion can significantly expedite an entrepreneur’s market entry into Thailand and establish an advantageous setting for conducting business.
In this article, we’ll delve into the heart of BOI promotions, unveiling the diverse array of business activities that can propel your ventures to new heights.
Key points
- A BOI promotion removes many barriers to doing business in Thailand, such as the restrictions of the Foreign Business Act.
- Companies approved for a BOI promotion are eligible for special incentives such as 100% foreign ownership, tax incentives, and reduced requirements to support work permits.
- The prospective company must undertake a qualifying business activity to qualify for a BOI promotion.
- A TISO promotion may be an option for companies that do not qualify for a traditional BOI promotion.
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 provide significant advantages for qualifying companies.
Incentives available include:
- 100% foreign ownership
- Reduced requirements for hiring foreign staff
- Permit to own land
- Streamlined visa and work permit processes
- Permit to remit money abroad in foreign currency
Tax Incentives:
- Exemption or reduction of import duties
- Exemption of a juristic person’s income tax and dividends
- Double deductions from the costs of transportation, electricity, and water supply
- Eight-year corporate income tax exemption for:
– Knowledge-based activities focussing on R&D and design to enhance Thailand’s competitiveness, or
– Activities in infrastructure for Thailand’s development, or
– Activities using advanced technology to create value-added contributions to the Thai economy and infrastructure.
- Five-year corporate income tax exemption for:
– High-technology activities that are important to Thailand’s development, with few investments already existing here.
- Three-year corporate income tax exemption for:
– Activities with lower technology than above, but still add value to domestic resources and supply-chain.
For more information about the BOI please check the following blog posts:
BOI Company Formation in Thailand
What business activities can get a BOI promotion?
Generally, activities eligible for a BOI promotion cover various areas such as manufacturing, agriculture, software, machinery, etc. Any potential business whose business activities don’t satisfy these criteria may be eligible for a TISO promotion instead. Please note that TISO promotions have their own set of qualifying activities, which will be discussed later in this article.
As mentioned above, to be eligible for a BOI promotion, the business must undertake or plan to undertake a business activity approved by the BOI.
The following business activities are the areas in which companies may be eligible to receive a promotion (please note each activity may be subject to certain conditions and requirements from the BOI):
*Please click on each section to see a complete list of eligible activities*
Digital & Creative Industries
- Development of software, digital platform or digital content
- Digital Infrastructure
- Digital ecosystem-supported business
- Thai motion picture production
- Motion picture support services
- Industrial zone for motion picture production (Movie Town)
Tourism Industry
- Tourism promotion services, e.g., amusement parks, zoos, Thai cultural centers.
- Activities to support tourism, e.g., Hotels, convention halls, and international exhibition centers.
Agriculture, Food, and Biotechnology Industries
- Manufacture of biological fertilizers, organic fertilizer, nano-coated organo-chemical fertilizer, and bio-pesticides
- Plant or animal breeding (only those that are not eligible for biotechnology activity)
- Crop dying and silo facilities
- Animal propagation or animal husbandry
- Slaughtering
- Deep sea fishery
- Grading, packaging and storage of plants, vegetables, fruits or flowers
- Manufacture of modified starch or starch made from plants that have special properties
- Manufacture of oil or fat from plants or animals
- Manufacture of natural extracts or products from natural extracts
- Manufacture of active ingredients from natural raw materials
- Tanneries or leather finishing
- Manufacture of natural rubber products (except for rubber bands, rubber balloons and rubber rings)
- Manufacture of products from agricultural by-products or agricultural waste (except for those with uncomplicated production processes, eg drying or dehydration)
- Manufacture of fuel from agricultural products, including agricultural scrap or garbage or waste
- Manufacture of preservation of food, beverages, food additives or food ingredients using modern technology
- Manufacture of medical food or food supplements
- Cold storage, or cold storage and cold storage transportation
- Trading center for agricultural goods
- Manufacture of animal feed production and animal food ingredients
- Manufacture of modern agricultural products or services related to modern agriculture
Medical Industry
- Manufacture of medical products
- Medical and health care services
- Specialty medical center
- Health care services
- Clinical Research
Machinery and Vehicles Industry
- Manufacture of machinery, equipment, and parts, and repair of in-house fabricated machinery or equipment
- Manufacture of scientific equipment
- Manufacture of lenses that are not classified as medical devices
- Manufacture of engines, equipment, or parts
- Manufacture of vehicle parts
- Manufacture of general automobiles
- Manufacture of motorcycles (excluding motorcycles with less than 248 ccs)
- Manufacture of battery electric vehicles (BEV), Plug-In hybrid electric vehicles (PHEV), hybrid electric vehicles (HEV), and BEV platforms
- Manufacture of electric battery motorcycles
- Manufacture of battery-electric tricycles and battery-electric tricycle platforms
- Manufacture of battery electric buses and trucks and battery electric buses and truck platforms
- Manufacture of electric bicycles (E-BIKE)
- Manufacture of fuel cell electric vehicles (FCEV) and equipment for fuel cell system
- Manufacture of fuel cells or parts
- Building or repair of ships
- Manufacture and/or repair of rolling stocks, parts, or equipment for rail system
- Charging station and battery swapping station for electric vehicles
Electrical Appliances and Electronics Industry
- Manufacture of electrical products
- Manufacture of parts and/or equipment used for electrical products
- Manufacture of electronic products
- Manufacture of parts and/or equipment used for electronic products
- Manufacture of material for microelectronics
Metal and Material Industries
- Manufacture of metal products, including metal parts
- Surface treatment or anodized surface treatment (except coating or coloring treatment for decoration purposes)
- Heat treatment
- Manufacture of multi-purpose engines and equipment
- Manufacture of machinery, equipment and parts
- Manufacture of general automobile
- Manufacture of automobile engines
- Manufacture of vehicle parts
- Building or repair of ships
- Manufacture and/or repair of rolling stocks, parts or equipment for rail system
- Manufacture or repair of aircraft or aerospace devices and equipment
- Manufacture of motorcycles
- Manufacture of fuel cells
- Fabrication industry or platform repair for the petroleum industry
- Manufacture of science equipment
- Manufacture and/or repair of vehicles and weapon systems for national defense
- Manufacture and/or repair of weapons and exercise-facilitating equipment for national defense and parts
- Manufacture and/or repair of combat facilitating equipment such as bullet-proof and flak-proof vests, armors or bullet-proof and flak-proof shields
Chemical and Petrochemical Industries
- Manufacturing of chemical products for industry
- Manufacture of eco-friendly chemicals or polymers or products from eco-friendly polymers
- Oil refinery
- Manufacture of petrochemicals
- Manufacture of specialty polymers or specialty chemicals
- Manufacture of plastic products for industrial goods
- Manufacture of plastic packages with special properties
- Manufacture of plastic products from recycled plastic
- Active pharmaceutical ingredients
- Manufacturing of medicines
- Manufacture of chemical fundamental fertilizers
- Manufacture of pulp or paper
- Manufacture paper articles
- Production of printed matter
- Manufacture of body care products, such as soap, shampoo, toothpaste and cosmetics
- Manufacture of plastic products for consumer goods
- Manufacture of products from pulp or paper
Public Utilities
- Public utilities and basic services
- Natural gas station
- Mass transit systems and transportation of bulk goods
- Logistics service centers
- Real estate development for industrial use
- Product sterilization services
- Recycling and reuse of unwanted materials
- Waste treatment or disposal
Light Industries
- Creative product design and development
- Manufacture of technical fiber or functional fiber
- Manufacture of functional yarn or functional fabric
- Manufacture of recycled fiber
- Manufacture of other fiber or yarn or fabric
- Bleaching, dyeing and finishing, or printing and finishing, or printing
- Manufacture of bags or shoes or products made of leather or artificial leathers
- Manufacture of gems and jewelry or parts, including raw materials and prototype
- Manufacture of sports equipment or parts
- Manufacture of furniture or parts
- Manufacture of toys
- Manufacture of printed matter
What business activities are eligible for a BOI TISO promotion?
Another interesting BOI promotion to consider is the Trade and Investment Support Office, often called “TISO.” While this promotion doesn’t provide tax advantages, it offers the significant advantage of permitting full foreign ownership (100%) of the entity. As a result, a TISO could be an option for businesses that don’t meet the criteria for other BOI promotio
Businesses applying for a TISO promotion must have
- an annual selling and administrative expenses of at least THB 10 million (approx. EUR 300,000); and
- a business plan and scope of business approved by the BOI.
The following business activities are eligible for a TISO promotion:
- Monitoring and/or servicing associated enterprises, including providing or renting out offices or factory buildings to associated enterprises and lending to associated enterprises outside the scope of a treasury center and can be implemented under the exchange control laws;
- Advisory services on business operations, except those buying and selling securities and foreign currency exchange. As for accounting, legal, advertising, architectural and civil engineering businesses, the business license must be obtained from the Department of Business Development or related governmental agencies before submitting the investment promotion application;
- Information services on goods sourcing;
- Engineering and technical services, except those related to architecture and civil engineering;
- Business activities related to machinery, engines, tools, and equipment, such as importing for wholesaling; training services; installation, maintenance, and repair; and calibration.
- Wholesaling products manufactured in Thailand; and
- International business process outsourcing, whose services are provided through telecommunication networks, such as administrative services, finance and accounting services, human resource services, sales, and marketing services, customer services, data processing, etc.
How can Belaws help?
For more information about BOI promotions 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 the benefits of having a BOI in Thailand?
A BOI promotion offers advantages such as 100% foreign ownership, tax relief, simplified visa procedures, and additional privileges, which are not available to ordinary companies. These benefits can significantly expedite market entry and provide an advantageous setting for conducting business in Thailand.
What is BOI approval in Thailand?
BOI approval refers to the recognition and endorsement granted by Thailand’s Board of Investment to qualifying businesses. This approval provides access to special incentives and privileges designed to attract foreign investments and promote economic growth.
What are the privileges of BOI?
The privileges of BOI include 100% foreign ownership, tax incentives, reduced requirements for hiring foreign staff, the permit to own land, streamlined visa and work permit processes, and permission to remit money abroad in foreign currency.
What is the meaning of BOI approval?
BOI approval signifies that a business has been officially recognized and endorsed by Thailand’s Board of Investment. This recognition grants the business access to various benefits and incentives that contribute to its growth and success.
How do I apply for BOI?
The general process involves undertaking a qualifying business activity approved by the BOI. Once your business activity meets the criteria, you can apply for BOI promotion to access the associated benefits and privileges. For specific application details, it’s advisable to refer to the official website of the Board of Investment in Thailand.
What business activities can get a BOI promotion?
Activities eligible for BOI promotion cover various sectors such as manufacturing, agriculture, software, machinery, and more. If your business activities don’t meet these criteria, you might consider a TISO promotion. Eligibility for BOI promotion requires undertaking a qualifying business activity approved by the BOI.
What is a TISO promotion from the BOI?
A TISO (Trade and Investment Support Office) promotion doesn’t offer tax advantages but allows 100% foreign ownership. This option could be suitable for businesses that don’t meet the criteria for other BOI promotions. Businesses seeking a TISO promotion should meet certain requirements, including annual expenses and an approved business plan from the BOI.
What business activities are eligible for a BOI TISO promotion?
A BOI TISO promotion covers various activities such as
- Monitoring and servicing associated enterprises,
- Advisory services,
- Information services on goods sourcing,
- Engineering and technical services,
- Machinery-related activities,
- Wholesaling products,
- International business process outsourcing.
Each activity may have specific conditions set by the BOI.
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