- Corporate Income Tax Reduction or Exemption: Foreign-invested enterprises established in specific regions can enjoy income tax exemptions or reductions for 3 to 8 years, with the tax reduction period lasting up to 5 years. For example, enterprises investing in the Eastern Economic Corridor (EEC) and other key regions in Thailand can obtain different degrees of income tax incentives.
- Tariff Incentives: Enterprises with over 30% of their products exported can enjoy duty-free imports of raw materials for 1 year. Qualified enterprises can be exempted from value-added tax and customs duties on imported equipment, and can apply for the refund of value-added tax on domestic purchases of raw materials. In export processing zones, if the proportion of exported products exceeds 40%, with the approval of the Board of Investment (BOI), all customs duties and value-added taxes on imported equipment and raw materials can be exempted.
- BOI Enterprise Tax Incentives:
- Import Tariff Exemption or Reduction: Import tariffs on machinery and equipment can be reduced or exempted; import tariffs on raw materials or key materials can be reduced; import tariffs on materials used for research and development activities can be exempted; import tariffs on imported raw materials or key materials used for the production of export products can be exempted.
- Corporate Income Tax Exemption or 50% Reduction: Corporate income tax on net profits derived from encouraged business activities can be exempted or reduced by 50%. For example, projects recognized as "Technology and Innovation Development" can enjoy a 10-year corporate income tax exemption without a cap on the amount.
- Cost Deduction from Taxable Income: Expenses on transportation, electricity and water can be doubled for deduction from taxable income; the installation or construction costs of production facilities can be deducted at 125% from taxable income.
- Tax Exemption on Dividends: During the period of corporate income tax exemption, dividends distributed by the company to shareholders are exempt from income tax and withholding tax.
Foreign-invested enterprises are exempt from income withholding tax. Thailand has signed double taxation treaties with 28 countries such as the United States, Canada, France, Germany, and Australia, eliminating double taxation on income tax in Thailand and the treaty countries.
- Land Lease Incentives: Enterprises that have obtained investment promotion from the BOI can enjoy certain preferential policies in terms of land lease, such as lower rents and longer lease periods, reducing the operating costs of enterprises.
- Work Permit Convenience: BOI companies can enjoy more convenient conditions and a faster approval process when applying for work permits for foreign employees, which helps enterprises attract and retain overseas talents.
