BOI Incentives in Thailand: Tax Holidays, Ownership, and What Changed in 2025
- Nov 7, 2025
- 5 min read
Thailand has long been a hub for investors looking to tap into the Southeast Asian market. At the heart of this attractive investment landscape is the Board of Investment (BOI), which offers a range of incentives designed to attract both local and foreign investments. In this post, we will explore the exciting incentives offered by the BOI, the changes set for 2025, and how these developments can create opportunities for investors.
The Promise of BOI
Thailand's BOI is a government agency that plays a pivotal role in promoting investment. With incentives such as corporate income tax (CIT) relief, import duty exemptions, and non-tax benefits, the BOI effectively combines tax advantages with regulatory facilitation. Depending on the nature of the investment, businesses can enjoy CIT exemptions lasting up to 13-15 years. Moreover, projects fitting targeted categories can receive other perks, including 100% foreign ownership, land rights, and visa facilitation. These elements make the BOI an exceptional choice for both domestic and foreign investors seeking a favorable investment environment.
What’s New (2025 Snapshot)
As we move into 2025, the BOI's strategies will sharpen and realign to focus on specific sectors. For example, the digital economy is receiving particular attention, especially in data centers and cloud services. Additionally, the electric vehicle (EV) sector and advanced electronics are highlighted in BOI roadshows and approval processes. The burgeoning BCG (Bio-Circular-Green) industries also show promise for investors, emphasizing sustainability and innovation.
Another notable change in 2025 is the commitment to workforce and local content development. Several programs have introduced incentives tied to local workforce training and procurement targets, particularly within the EV sector. This shift aims to enhance local capabilities while encouraging foreign investment in high-tech industries.
Incentive Architecture (A vs. B Groups)
The BOI structures its incentives based on two main groups:
Group A
Group A encompasses projects qualifying for corporate income tax holidays ranging from three to 13 years. The availability of incentives is activity and law dependent, making it crucial for businesses to align their projects with targeted sectors. Notably, there is no cap on tax holidays for frontier technologies, which can be especially attractive to investors in rapidly developing fields.
Group B
In contrast, Group B offers non-tax incentives and import duty benefits, though it does not provide corporate income tax holidays. Investors can still capitalize on various advantages, but it's essential to evaluate the project's fit within the BOI's promotion categories.
Non-Tax Incentives (Why Many Investors Start Here)
One of the significant attractions of BOI incentives is the non-tax benefits, especially for projects that might not be eligible for CIT holidays. Key benefits under this framework include:
100% Foreign Ownership: For a promoted project, foreign ownership limitations from the Foreign Business Act are overridden. This means that investors can fully own their business operations in Thailand.
Land Ownership: Investors can secure land ownership for their approved business use, which is particularly crucial for long-term development plans.
Visa and Work-Permit Facilitation: The process of obtaining necessary permits for foreign workers is streamlined, allowing businesses to focus on operations rather than bureaucratic hurdles.
Understanding these non-tax incentives is vital for many investors who may prefer immediate control without the complexities of tax holidays.
Application Mechanics (and How to Avoid Reworks)
Applying for BOI incentives can be challenging, but understanding the application mechanics is crucial for a smooth process. The BOI has introduced an e-Investment system, allowing applicants to submit their applications online. Successful applications rely on well-prepared documentation.
If submitted documents are incomplete, the BOI provides a 30-day correction period. However, lacking a clear narrative or missing key information can lead to rejection. To avoid reworks, investors should focus on:
Providing a clear technology narrative that outlines the project's innovations.
Developing a comprehensive capital and workforce plan, emphasizing local employment opportunities.
Highlighting supply-chain localization, particularly for projects in categories emphasizing local content.
By staying informed about BOI’s Investment Promotion Guide 2025, applicants can align their projects with the necessary criteria and requirements.
Worked Example: EV Components Supplier
To illustrate the benefits of BOI incentives, consider a hypothetical scenario involving an electric vehicle components supplier. This business would fall under advanced manufacturing or electronics, making it a good fit for BOI incentives.
Category Fit
The proposed project matches categories related to advanced manufacturing and the rapidly growing EV sector. This alignment qualifies the supplier for various incentives offered under the BOI framework.
Incentives
The supplier could be eligible for up to an eight-year CIT exemption, depending on its activity tier. Alongside this, the business might access duty-free import privileges for its machinery. Potential add-ons, closely tied to achieving local content targets, could further enhance the benefits available.
Compliance Guardrails
To retain these benefits, the EV components supplier must comply with specific requirements, such as:
Developing and executing training plans for local Thai staff.
Timely reporting and documentation to ensure compliance with BOI regulations.
This example underscores how businesses can successfully navigate BOI incentives by aligning their operations with both the regulatory environment and national strategic priorities.
BOI vs. Free Zone vs. “Regular” Company: How to Choose
When considering investment structures in Thailand, investors must evaluate their options: BOI, Free Zone, or a regular company.
Free Zone: If your business involves heavy exports and requires cash-flow relief on inputs, a Free Zone may be beneficial. However, it’s crucial to assess if your business activities are eligible for BOI promotion as well.
BOI: If your project targets priority technologies or sectors, the BOI offers significant advantages, including ownership and tax holidays. This approach is especially attractive for projects located offshore or within Industrial Estate Authority of Thailand (IEAT) zones or Special Economic Zones (SEZs).
Many businesses strategically combine BOI advantages with Free Zone benefits for a cumulative upside. Thus, a project-by-project basis evaluation is essential.
Final Thoughts
As Thailand's landscape continues to evolve, the incentives offered by the BOI stand out as a beacon for investors. Whether you are an emerging business in the digital sector, an established company looking to expand, or a technology innovator, understanding and leveraging these incentives can pave the way for successful ventures.
To get started, we invite you to send us your project brief, including your capital expenditure, activity plans, export ratios, and workforce plans. Within 72 hours, we will provide you with a two-page BOI viability and benefits memo, offering insights tailored to your specific needs.
Investing in Thailand has never been more promising with the BOI's clear vision for the future and commitment to fostering sustainable growth across industries.
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