In brief

On 7 February 2024, the Thailand Board of Investment (BOI) issued several investment promotion measures under the announcements as follows.

In more detail

1. Announcement of the Board of Investment No. 1/2567 on Investment Promotion Measure for Social and Local Development

The BOI issues this measure to promote social and local development and environmental improvement, to help alleviate the PM2.5 problem by granting a corporate income tax exemption (CIT) of up to 200% of the investment capital (excluding the cost of land and working capital). 

The project wishing to receive the incentive must meet the following requirements:

• It must invest at least THB 5 million (excluding the cost of land and working capital) to support local organizations.
• The project must have a collaboration plan with local organizations to enhance competitiveness.

2. Announcement of the Board of Investment No. 2/2567 on Retention and Expansion Program

The BOI offers incentives to existing large-scale business operators to stimulate continuous investment in Thailand. Under this announcement, applicants must be existing promoted persons who have had at least three promoted investment projects under the same juristic person in the past 15 years from 2009 to 2023, with a combined investment value at the project approval stage of at least THB 10 billion (excluding the cost of land and working capital).

The eligible expansion projects must have an investment of at least THB 500 million and will receive incentives, such as an additional three-year CIT exemption for up to 13 years for projects in Groups A1+ and up to eight years for projects in Groups A3, A4, and B.

3. Announcement of the Board of Investment No. 3/2567 on the Relocation Program

To promote the relocation of integrated businesses, the BOI provides incentives to businesses that operate all manufacturing activities, regional headquarters, and research and development (R&D) centers in Thailand.

The incentives provided under this measure are:

• Additional three-year CIT exemption (but not exceeding eight years in total) on the net profit from investment in manufacturing activities for applicants of manufacturing projects that also operate regional headquarters business in Thailand.
• Additional five-year CIT exemption (but not exceeding eight years in total) on the net profit from investment in manufacturing activities for applicants of manufacturing projects that also a operate regional headquarters business and establish an R&D center in Thailand.

4. Announcement of the Board of Investment No. 4/2567 on Investment Stimulation Measure for Economic Recovery

In an attempt to boost investment for large-scale projects in targeted industries and expedite the recovery of the Thai economy, the BOI grants eligible projects in Groups A1, A2, A3, and A4 with an additional 50% reduction of the applicable CIT on the net profit derived from the investment for a period of five years from the expiration of the CIT exemption.

The eligible project must have an actual investment of at least THB 1 billion (excluding the cost of land and working capital) within 12 months from the issuance of the investment promotion certificate.

For more details, please contact our team at Baker McKenzie.