According to the statistics of the application for investment promotion from the Office of the Board of Investment (BOI) during the first nine months of 2022 (Jan-Sep), there were 1,247 applications for investment promotion, rising 8% compared with the same period in 2021; although they were worth 439,090 million baht, the value had fallen 14%, since in 2021 large-scale projects in electricity generation had applied for investment promotion, worth more than 1.5 million baht.

        Thailand is still an interesting country for investment, especially foreign direct investment (FDI), which was worth 275,624 million baht in 2022. The biggest investors were Chinese, 45,024 million baht, followed by Taiwanese, 39,256 million baht, and Japanese, 37,591 million baht. Most of the investments were automotive and parts, electrical appliances and electronics, agriculture and food processing, and petrochemicals and chemicals. 

        The country’s promotional investment amount and the five-year investment promotion strategy (2023-2027) aims to promote investment for the restructuring of the national economy to a “new economy.” The strategy is full of tax-based and non-tax-based incentives, comprehensive services before and after investment, creation of an ecosystem, and improvement of rules and regulations to facilitate investment, all in order to get ready for the great supply chain and relocation of manufacturing bases. Thailand is likely to become the regional investment hub in five aspects, namely Tech Hub, BCG Hub, Talent Hub, Logistics Hub and Business Hub, and Creative Hub.

BOI investment promotion measures can be divided into tax incentives to attract foreign investors:

• Corporate income tax exemption for up to 13 years (depending on type of business and conditions);
• 50% corporate income tax reduction for up to 5 years (for BOI zone only);
• Exemption of import duty on machinery;
• Exemption of import duty on raw materials for export;
• Exemption of import duty on raw materials for use in research and development activities.

As for non-tax incentives offered to foreign investors, the following are available:

• Foreigners are allowed to hold 100% of the share (except business activities specified in the List 1 annexed to the Foreign Business Act or determined by other specific legislation);
• Foreigners are allowed to own land;
• Permits to bring skilled labor and experts into the country to work in the investment-promoted operations. 

        Foreign investors who are interested should make contact for more information or apply for investment promotion at the BOI Central Office, BOI Regional Offices, BOI Overseas, or at www.boi.go.th;  the e-mail address is head@boi.go.th. Do not miss the chance to be granted these generous investment incentives, for the sustainable growth and prosperity of your business.

Source : Thailand Board of Investment 555
Tel : +66 2553 8111