Thailand BOI Investment Incentives Explained: Up to 8 Years Tax Exemption + Land Ownership (Renewable Every 2026 Years)

What is the Thailand BOI?

BOI (Board of Investment)The Board of Investment of Thailand (BOI) is responsible for formulating and implementing Thailand's investment promotion policies. The BOI offers a range of preferential measures to foreign-invested enterprises that meet eligibility criteria, serving as a key support agency for foreign investors establishing factories in Thailand.

BOI's Core Functions：

• Approve foreign-investment projects
• Offer tax and non-tax incentives
• Assist investors with required procedures
• Investment consulting and follow-up services

BOI Investment Incentive Categories

Category A: High-Value Industries (Maximum Incentives)

Category A1(Highest Level):

• Corporate Income Tax: 8 years tax-free
• Imported Equipment: Duty-free
• Raw Materials: 1 years tax-free
• Land ownership: Foreign investment allowed

Industries：

• High-Tech Manufacturing
• Biotechnology and nanotechnology
• Automation and Robotics
• Aerospace Industry

Category A2：

• Corporate Income Tax: 8 years tax-free
• Imported Equipment: Duty-free
• Raw Materials: 1 years tax-free

Industries：

• Electronics & Appliances
• Precision Machinery
• Chemical and Petrochemical
• Automotive Parts

Class B: Medium-Technology Industries

Category B1：

• Corporate Income Tax: 5 years tax-free
• Imported Equipment: Duty-free

Industries：

• General Manufacturing
• Agricultural Product Processing
• Textiles
• Furniture Manufacturing

B2 Category：

• Corporate Income Tax: 3 years tax-free
• Imported Equipment: Duty-free

Industries：

• Light Industry
• Handicrafts
• Packaging Materials

Class C: Basic Industries

Class C：

• Corporate Income Tax: 3 years tax-free

C2 Category：

• Corporate Income Tax: 1-2 tax-free

BOI Benefits Explained

Tax Incentives

Corporate Income Tax Exemption：

• Tax-free period: 1–8 years
• After tax-free period: Pay at standard rate of 20%
• Loss carryforward: up to 5 years

Import tariff benefits：

• Production Equipment: 100% tax exemption
• Raw materials: 1-5 years tax-free
• Parts: Waived as applicable

Other Tax Incentives：

• Dividend tax: Tax-exempt
• Withholding Tax: Exempt
• Property Tax: Exemptions

Non-tax incentives

Land ownership：

• A1 Category: Allows foreign entities to purchase land
• Other categories: Long-term lease available (up to 50 years + 25-year renewal)

Foreign Exchange Management：

• Freely remit foreign exchange
• No foreign exchange controls
• Open foreign currency accounts

Work Visa：

• Priority Permit Approval
• Simplify the visa process
• Family members may accompany

BOI Application Process

Step 1: Preparation (2-4 weeks)

1. Project Feasibility Study

   • Market Analysis
   • Technical Assessment
   • Financial Forecast

2. Prepare application materials

   • Investment Application
   • Articles of Association
   • Financial Statements
   • Technical Solution

Step 2: Submit application ( 1–2 weeks )

1. Submit Online: Submit via the BOI electronic system
2. Pay Application FeeDetermined by investment amount
3. Get Application Number: Enter approval process

Step 3: BOI Review (4-8 weeks)

1. Preliminary Review: Material completeness check (1 weeks)
2. Technical Assessment: Technical Solution Review (2-3 weeks)
3. Committee Approval: BOI Committee Review (2-4 weeks)

Step 4: Approval (1-2 weeks)

1. Obtain in-principle approval: Approval letter received
2. Accept Benefits: Sign Acceptance Letter
3. Complete follow-up procedures: Company registration, land, etc.

Step 5: Project Implementation (6-12 months)

1. Company Registration: Establish a company in Thailand
2. Land Procedures: Purchase or lease land
3. Construction: Factory Construction
4. Device Installation: Equipment Commissioning

Step 6: Official Launch

1. BOI Acceptance: Project Acceptance
2. Start saving: Start enjoying tax benefits
3. Periodic ReportSubmit the operations report as required

Comparison of BOI Incentives

Comparison with other countries

Promotions	Thailand BOI	Malaysia MIDA	Indonesia BKPM
Maximum tax-free period	8 years	10 years	5-10
Land Ownership	Allow (A1)	Allow	Limit
Foreign exchange controls	None	None	Yes
Approval Time	2-3 months	1-2 months	3-4 months
Minimum Investment	100 THB	None	Higher

Conclusion

Thailand's BOI investment incentives create a highly attractive environment for foreign enterprises, especially in manufacturing. Leveraging BOI benefits can significantly reduce investment costs and operational risks.

Liantai ConstructionSpecializing in steel structure factory construction in Thailand, we have provided BOI project construction services to 30+ companies:

• Familiarize with BOI policies and application procedures
• Assist in preparing BOI application materials
• Provide factory design compliant with BOI requirements
• Built by our China team, saving 35-40% in costs

Contact Us NowGet your exclusive Thailand BOI project factory setup plan!