Invest in Thailand with Majority or Full Foreign Ownership and Tax Incentives
The Board of Investment (BOI) promotes investment in targeted industries under the Investment Promotion Act B.E. 2520. A company that receives a BOI promotion certificate can enjoy a package of tax and non-tax privileges, and a promoted foreign-owned business is exempt from most of the Foreign Business Act for as long as the promotion lasts.
- Ownership: where a promoted activity would otherwise be restricted under List 2 or List 3 of the Foreign Business Act, the promoted company notifies the Department of Business Development and obtains a certificate. The company is exempt from the Act, with a few exceptions, during the promotion period.
- Tax privileges: corporate income tax exemption on net profit from the promoted activity for up to eight years, together with import duty exemptions on machinery and, for exports, raw materials.
- Land: a promoted company may be permitted to own land for its promoted business in an amount the Board considers appropriate. If a foreign-owned promoted company ends or transfers the business, it must sell the land within one year.
- People: permission to bring in foreign skilled workers and experts, together with the work permits and visas that follow.
- Currency: a promoted company or investor domiciled abroad may remit foreign currency for imported capital, dividends and certain foreign loan repayments.
Requirement of a BOI Application
- A promoted activity that falls within the BOI’s list of eligible businesses, and meets the conditions for that activity.
- A business plan with the project description, investment amount, location, and expected production or service volume.
- Evidence of capital and financial ability, together with the company’s registration documents.
- Compliance with the conditions of the certificate after approval, including annual reporting.