Investment is a very important mechanism for driving the economy of each country. Thailand has an agency called the Board of Investment or BOI that is responsible for promoting investment both domestically and internationally. Benefits are given to foreign investors who come to invest using Thailand as a production base for various industries in industrial estates or industrial parks throughout the country and export products abroad.
Businesses granted with promotion from BOI
Businesses granted with promotion from BOI include businesses that are important to the country’ development, use domestic resources as raw materials, tend to have products in demand, require large amount of investment, and are innovative businesses such as digital technology, nano technology, for example.
Categories of businesses granted with promotion from BOI are listed below.
- Agriculture, food and biotechnology
- Healthcare, medical devices and parts
- Machines and automobiles
- Metal products and materials
- Electrical appliances and electronics industry
- Petrochemical, chemical supplies, plastics and paper
- Service and public utility businesses such as mass transportation, tourism
- Technology development and innovation
- Businesses focusing on creativity
- High-value service businesses
Types of benefits from BOI
There are two main types of benefits for businesses granted with promotion from BOI, i.e. tax incentives and non-tax incentives.
Businesses granted with promotion from BOI will receive tax incentives in many areas such as import duty exemption for imported machinery for use in manufacturing products for export purpose, import duty exemption for raw materials imported in manufacturing products for export purpose, and import duty exemption for finished goods imported for export purpose.