List of Tax and Non-Tax Incentives Granted to BOI Registered Companies

I am sure you know already that a BOI registered company gets to enjoy many tax and non-tax benefits. While you may know a few, there are a lot more than what you can imagine. Typically, the BOI incentives are offered based on the group classification for the investors’ activities. However, non-tax benefits can be obtained by the projects that receive BOI promotion, no matter what the activities are.

Usually, incentives are granted to two groups; activity-based and merit-based. The activity-based group can obtain both tax and non-tax incentives, whereas the merit-based activities will remain limited to non-tax incentives and a few import duty benefits.

Activity-based Incentives

• Knowledge-based activities receive 8-year corporate income tax exemption from import duty on machinery as well as raw materials and non-tax benefits.
• Activities for development of the country’s infrastructure will receive 8-year corporate income tax exemptions from import duty on machinery and raw materials and non-tax benefits.
• High-technology activities will receive a 5-year corporate income tax exemption from import duty on machinery and raw materials and non-tax benefits.
• Activities adding value to domestic resources and strengthening supply chain will be able to receive a 3-year corporate income tax exemption from the same as mentioned above.
• High-technology activities will receive a 5-year corporate income tax exemption from import duty on machinery and raw materials and non-tax benefits.

Merit-based Incentives

• Encouraging Competitive Environment: Additional CIT incentives can be granted based on the kinds and ratios of eligible investment and/or expenses for the BOI promoted company. Separate CIT incentives like additional deductions for a few R&D costs and training expenditure can be obtained.
• Decentralization: 20 provinces including Maha Sarakham, Mae Hong Son, Nong Bua Lamphu and Ubon Ratchatani etc., will receive the below-mentioned incentives;
• 3-year CIT exemption
• Knowledge-based activities and activities doing good to Thailand will get 50% CIT reduction for 5 years when CIT exemption tenure gets over.
• 25% deduction for installation costs or any type of construction facilities
• Double deduction for electricity, water supply and transportation for 10 years
• Industrial Area Development: Projects that are situated in the industrial estates and promoted industrial zones will receive 1-year additional CIT exemption.