Thailand's industrial promotion has developed progressively over a long period of time. The path of Thailand's industrial development is based on internal factors such as the country's economic and social conditions as well as other external influencing factors. This path of development has been gradually transformed and adapted to the modern era and the drastic change of technology.
Thailand Board of Investment or BOI is one of the Thai economic units that promote the country's industry all along the past period.
The investment promotion schemes have been drafted according to the government policies and the national development strategies in each period. The Thai industry has evolved from the period of the production of for import substitution to the period of the production for export and it has continued evolving by putting emphasis on job creation, decentralization of investment, creation of industrial clusters, competitiveness enhancement, renewable energy promotion, environmental issues solution as well as stimulation of investment during crisis.
From the past until today the Thailand Board of Investment has continuously played a key role in implementing government policies in each period. The BOI has helped creating the main industrial clusters in Thailand such as petrochemical, automotive and parts, electronics and electrical industries etc. These industrial clusters have generated numerous business opportunities for the Thai people. Valuable supporting industries are able to grow along side the clusters.
"Tax incentives" in Thailand are still an essential tool to stimulate investment in targeted industries that would not enter into Thailand through market mechanism.
Therefore, under the new investment promotion strategy, great importance was put into investment in research and development, development of technology and human resources, high-tech industries, as well as improvement of the industry standards in Thailand. The new strategy also focuses on linkages between promoted private sectors and educational and research institutions, in order to improve the knowledge level and to transfer technology and skills.
"Tax incentives" in Thailand are still an essential tool to stimulate investment in targeted industries that would not enter into Thailand through market mechanism. Moreover, other countries in the region are utilizing the same tool to attract valuable investment and to create competitive advantages.
Besides implementing the tool of investment incentives, the benefits of the country will also be taken into consideration. The different levels of the offered incentives depend on the significance of the business to the country. Therefore, the categories of promoted business activities are selective.
In order to move towards "Thailand 4.0", which mark the stage of country's development based on research and development, the BOI has added a new business category eligible for investment promotion additionally to the seven already existing categories, with details as follows:
Category 8.1 Development of Targeted Technology
8.1.1 Biotechnology
8.1.2 Nanotechnology
8.1.3 Advanced Material Technology
8.1.4 Digital Technology
Incentives:
1. Corporate income tax exemption up to 10 years without being subject to an exemption cap
2. The project is eligible for Merit-Based Incentives, which offer additional 1 – 3 years of corporate income tax exemption period
Note: The corporate income tax exemption period of 1 + 2 must not exceed 13 years.
www.boi.go.th
E-mail: head@boi.go.th
Tel: 0 2553 8111
Application: BOI Thailand
