The Thai BOI grants the promoted activities with tax and non-tax incentives. In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted in accordance with the Investment Promotion Act:

• Exemption or reduction of import duties on machinery (under Section 28/29)
• Reduction of import duties for raw or essential materials (Section 30)
• Exemption of import duties on materials imported for R&D purposes (Section 30/1)
• Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31, 31/1 and 34)
• A 50% reduction of the corporate income tax (Section 35(1))
• Double deduction from the costs of transportation, electricity and water supply (Section 35 (2))
• Additional 25% deduction of the cost of installation or construction of facilities (Section 35 (3))
• Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)

However, not all promoted activities can be granted with the same tax incentives but if your company is one of those that can be eligible, we highly recommend to seek a BOI expert like us when you apply to open the BOI operation.