Thailand Board of Investment Policy Update

Dej-Udom & Associates overview of Thailand’s new¬†Board of Investment (BOI) Incentives


With the recent amendment of the Investment Promotion Act, the BOI launched its new investment incentives for projects involved with advanced technology and innovation or research and development. The amendment to the Act focuses on investment encouraging mechanisms in deficient industries including:
1) A Corporate Income Tax (CIT) exemption not exceeding 13 years (previously 8 years) for projects in the fields of advanced technology and innovation or research and development;
2) A Personal Income Tax (PIT) deduction of a maximum of 50% of the normal rate not exceeding 10 years for projects that qualify for the Income Tax deduction requirements substituted for the Corporate Income Tax exemption;
3) An Investment Tax Allowance (ITA) allowing the amount of investment capital in the promoted projects to be computed as an allowance from the annual net profit within 10 years from the date of the first income was made under the promoted projects; and
4) An Import Tax exemption for imported materials in order to promote research and development.

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