Business activities eligible for BOI promotion.

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Last updated: March 12, 2021
Business activities eligible for BOI promotion

We have put this article together to provide an outline of the eligible activities for BOI promotion in Thailand.

It is commonly known that the Thai government provides incentives to businesses operating in selected industries to decentralise Thailand’s industrial base and attract investments from both foreign and local entrepreneurs.

Let’s find out what the promoted industries are.

What is BOI?

The BOI (Office of Board of Investment) is a Thai government agency that has a role of promoting valuable investment both into Thailand and Thai overseas investment. It does so by provide a series of tax and non-tax incentives.

BOI investment promotion policies

Investment promotion policies under the BOI are to:

  • Promote investment that helps enhance national competitiveness
  • Promote activities that are environment-friendly
  • Promote clusters to create investment concentration in accordance with regional potential and to strengthen value chains
  • Promote investment in border provinces in Southern Thailand
  • Promote special economic zones
  • Promote Thai overseas investment to enhance the competitiveness of Thai businesses in the global economy

Activities eligible for investment promotion

The following activities are eligible for BOI promotion in Thailand:

1. Agriculture and agricultural productsManufacture of biological fertilisers, organic fertiliser, nano-coated organo-chemical fertiliser and bio-pesticides
Plant or animal breeding (only those that are not eligible for biotechnology activity)
Crop dying and silo facilities
Animal propagation or animal husbandry
Slaughtering
Deep sea fishery
Grading, packaging and storage of plants, vegetables, fruits or flowers
Manufacture of modified starch or starch made from plants that have special properties
Manufacture of oil or fat from plants or animals
Manufacture of natural extracts or products from natural extracts
Manufacture of active ingredients from natural raw materials
Tanneries or leather finishing
Manufacture of natural rubber products (except for rubber bands, rubber balloons and rubber rings)
Manufacture of products from agricultural by-products or agricultural waste (except for those with uncomplicated production processes, eg drying or dehydration)
Manufacture of fuel from agricultural products, including agricultural scrap or garbage or waste
Manufacture of preservation of food, beverages, food additives or food ingredients using modern technology
Manufacture of medical food or food supplements
Cold storage, or cold storage and cold storage transportation
Trading centre for agricultural goods
Manufacture of animal feed production and animal food ingredients
Manufacture of modern agricultural products or services related to modern agriculture
2. Mining, ceramics and basic metalsProspecting of minerals
Potash mining and/or dressing
Manufacture of advanced or nano materials or products produced from advanced or nano materials
Manufacture of glass or ceramics products
Manufacture of fire-resistant materials or heat insulation
Manufacture of gypsum board or gypsum products
Manufacture of up-stream steel, eg hot metal, pig iron, sponge iron, Direct Reduction Iron (DRI) and Hot Briquetted Iron (HBI)
Manufacture of intermediate steel, eg slab, billet and bloom
Manufacture of down-stream steel
Manufacture of steel pipes or stainless-steel pipes
Manufacture of metal powder
Manufacture of ferro-alloy
Manufacture of cast iron/steel parts
Rolling, drawing, casting or gorging of non-ferrous metals
Coil centre
Manufacture of construction materials and pre-stressed concrete for public utilities
3. Light industryManufacture of textile products or parts
Manufacture of non-woven fabric or hygienic products made of non-woven fabric
Manufacture of bags or shoes or products made of leather or artificial leather
Manufacture of sports equipment or parts
Manufacture of musical instrument
Manufacture of furniture or parts
Manufacture of toys
Manufacture of gems and jewellery or parts including raw material and prototype
Manufacture of lenses
Manufacture of medical devices or parts
4. Metal products or metal products including metal partsManufacture of metal products including metal parts
Surface treatment or anodised surface treatment (except coating or colouring treatment for decoration purpose)
Heat treatment
Manufacture of multi-purpose engines and equipment
Manufacture of machinery, equipment and parts
Manufacture of general automobile
Manufacture of automobile engines
Manufacture of vehicle parts
Building or repair of ships
Manufacture and/or repair of rolling stocks, parts or equipment for rail system
Manufacture or repair of aircraft or aerospace devices and equipment
Manufacture of motorcycles
Manufacture of fuel cells
Fabrication industry or platform repair for petroleum industry
Manufacture of science equipment
Manufacture and/or repair of vehicles and weapon systems for national defence
Manufacture and/or repair of weapons and exercise-facilitating equipment for national defence and parts
Manufacture and/or repair of combat facilitating equipment such as bullet-proof and flak-proof vests, armours or bullet-proof and flak-proof shields
5. Electronic industry and electric appliancesManufacture of electrical products
Manufacture of parts and/or equipment used for electrical products
Manufacture of electronic products
Manufacture of parts and/or equipment used for electronic products
Manufacture of material for microelectronics
E-commerce
Digital services
6. Chemicals, paper and plasticsManufacturing of chemical products for industry
Manufacture of eco-friendly chemicals or polymers or products from eco-friendly polymers
Oil refinery
Manufacture of petrochemicals
Manufacture of specialty polymers or specialty chemicals
Manufacture of plastic products for industrial goods
Manufacture of plastic packages with special properties
Manufacture of plastic products from recycled plastic
Active pharmaceutical ingredients
Manufacturing of medicines
Manufacture of chemical fundamental fertilisers
Manufacture of pulp or paper
Manufacture paper articles
Production of printed matter
Manufacture of body care products, such as soap, shampoo, toothpaste and cosmetics
Manufacture of plastic products for consumer goods
Manufacture of products from pulp or paper
7. Service and public utilitiesPublic utilities and basic services
Natural gas station
Mass transit systems and transportation of bulk goods
Logistics service centres
Real estate development for industrial use
Product sterilization services
Recycling and reuse of unwanted materials
Waste treatment or disposal
Thai motion picture production
Motion picture support services
Tourism promotion services
Activities to support tourism
Medical services
Development of labour’s accommodation in accordance with international standard
Smart city area development business
Smart city system development business
Distribution centre with smart system
International Business Centre
EV charging stations
Housing projects for low-income earners
8. Technology and innovation developmentTargeted care technology development

The following activities are knowledge-based activities focusing on R&D and design to enhance the country’s competitiveness that will be granted an eight-year corporate income tax exemption without being subject to an exemption cap:

  • Economic forest plantation (except for Eucalyptus)
  • Creative product design and development centre
  • Manufacture of aircraft or aircraft parts, such as airframe, critical parts, appliance equipment or other components
  • Manufacture and/or repair of unmanned systems for national defence and parts used in the manufacture and/or repair
  • Electronics design
  • Software
  • Production of electricity or electricity and steam from garbage or refuse-derived fuel
  • Energy Service Company (ESCO)
  • Food innovation industrial zone
  • Industrial zone or technology zone
  • Cloud service
  • Research and development
    • Bio and medical industries
    • Advanced manufacturing industries
    • Basic and supporting industries
    • High-value services
    • Creative and digital industries
  • Biotechnology
  • Engineering design
  • Scientific laboratories
  • Calibration services
  • Human resources development

Conclusion

Incentives can be both tax and non-tax related and depend on the type of business activity. A more detailed list of activities can be found on the BOI’s website.

If you are interested in opening a BOI company in Thailand, we recommend engaging with Acclime’s services to assist you in registering and setting up a BOI company in a hassle-free manner.

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