Thailand BOI: New Tax and Employment Benefits for Foreign-Owned Companies

The Thai Board of Investment (BOI) will be providing better support for foreign-owned companies soon due to recent rule changes and allowances for promoted businesses. In response to higher business competition in the region and the tariffs imposed by the Trump Administration, foreign businesses operating in Thailand will receive new tax and employment benefits, especially for small and medium-sized enterprises (SMEs). 

These changes mean that companies promoted by the BOI will be able to better adapt to Thailand’s evolving business climate and stay competitive in the region. Therefore, if you are considering starting a company and seeking BOI promotion, or already operate a promoted business, you should familiarize yourself with these updates so that you can leverage these new benefits.

What is the Thailand Board of Investment (BOI)?

The Thailand Board of Investment (BOI) is a government agency aimed at increasing foreign investment in the country. One of the ways it executes this plan is by promoting businesses in targeted industries by offering incentives and special privileges, including tax breaks. Securing BOI promotion provides multiple benefits for your business that will give you a competitive advantage, such as:

• Corporate income tax exemption on net profit and dividends from promoted activities
• Reduced or waived import duties on machinery, raw materials, and essential materials
• Tax deductions on transportation, electricity, and water supply costs
• Lower corporate income taxes
• Permission to hire skilled workers and expats to participate in BOI-promoted activities
• The ability to own land for your business
• Opportunity to transfer or remit funds overseas in foreign currency
• The opportunity to own a majority or all of your company (typically restricted under Thai law)

What Are the New BOI Tax and Employment Benefits?

The Board of Investment has proposed new tax and employment benefits to help the promoted businesses remain stable and competitive as Thailand’s economy continues to fluctuate and modernize. As US tariffs cause more market instability, these measures are hoped to insulate businesses from US trade policy risks. 

Not all of these new rules are positive, however, and some businesses may be negatively affected for the good of the greater economy. If you operate a foreign-owned business in Thailand with BOI promotion, you will be affected by the following changes: 

Better Corporate Income Tax Benefits

The BOI will be increasing the amount of tax exemptions for efficiency improvements made to your company. Under the new rules, your BOI-promoted business will benefit from a 5-year corporate income tax exemption that’s equal to 100% of investment value in activities that increase your company’s operational output and productivity. 

This includes investments in areas such as digital transformation, automation, and sustainable operations. This is a significant upgrade from the previous policy, which allowed companies a corporate income tax exemption covering just 50% of their investment value in the same activities for only 3 years. 

Reduction of Oversupply Risks

In response to the announced US trade policies, the BOI is attempting to cut down on overproduction and lower risks tied to international trade barriers. As a result, the BOI will stop granting incentives for businesses in industries flagged for oversupply or trade weaknesses.

This includes companies that produce solar panels, lead-acid batteries, automotive components, and more. Additionally, the BOI will be withdrawing downstream steel manufacturing incentives. By doing this, the BOI aims to push investment into industries that offer long-term success and are more sustainable. 

Higher Production Scrutiny in Certain Industries

The BOI is also tightening the production criteria for certain industries to improve their exports. This would target industries that may be affected by US tariffs, such as electrical appliances, electronics, metal products, and more. Any of the industries affected by the new policy would be required to transform raw materials into finished products more efficiently, which will help them stay competitive and avoid possible trade penalties. 

More Foreign Workers Allowed at Promoted Companies

The BOI has also updated certain employment rules for foreign-owned companies that they have promoted. If your business employs more than 100 employees, at least 70% of your workforce must comprise Thai citizens. Typically, businesses must employ 4 Thai citizens for every work permit granted to a foreigner in the company, meaning that around 75% of the workforce must be Thai. This slight increase allows for more foreigners to join a company and share their expertise and knowledge.

Additionally, a minimum income requirement has been implemented, where executives in the company are required to earn at least 150,000 baht per month, and specialists have to earn a monthly wage of 50,000 baht. These changes aim to attract more skilled foreign talent while allowing Thai employees to grow and learn alongside them, thereby improving Thailand’s overall workforce. 

Thai Government Cuts Interest Rates

On April 30, 2025, the Monetary Policy Committee (MPC) voted to decrease the interest rate in Thailand from 2% to 1.75%. This was another move by the Thai government to enhance the declining economy and protect local businesses as Thailand experiences inefficiency in global trade, fewer tourists visiting the country, and lower financial conditions. 

Given the uncertainties of Thailand’s economic growth and development throughout 2025, cutting the interest rate should help stabilize the economy and reduce market volatility. 

Professional Assistance in Setting up a Business With the Thailand BOI

If you’re opening a business in Thailand and looking to apply for BOI promotion, don’t hesitate to reach out to Siam Legal for professional assistance. As a full-service law firm in operation for over 20 years, our corporate law team has the skills and knowledge to help you start your company swiftly and secure BOI incentives you may be eligible for. 

Our corporate lawyers will guide you step-by-step through not just the company creation process but also the BOI promotion application, so your company can get to market fast with the maximum number of competitive advantages. Partner with Siam Legal, and we will:

• Assess your eligibility for the BOI promotion by reviewing your business plan
• Provide support on how you can effectively present your business plan to the BOI
• Collect all required paperwork for your application
• Review your application packet to rectify any mistakes before it’s submitted
• Assist you in setting up a company in Thailand from scratch
• Handle the submission of your application to the BOI officials
• And much more

Contact Siam Legal today to establish a highly profitable and successful business with the competitive benefits offered by the BOI in the swiftest and smoothest manner possible.

Category: Company Registration, Thailand BOI