What does BOI promotion actually get you?
Four things: a corporate income tax holiday of three to thirteen years depending on which activity group the project falls in, import duty exemptions on machinery and export raw materials, permission to be majority or wholly foreign owned in activities that would otherwise need a Foreign Business Licence, and a visa and work permit regime for foreign staff without the four Thai employees rule. All of it attaches to the promoted project and its income, not to the company as a whole.
Last reviewed 19 October 2026
The tax side
Every promoted activity sits in an incentive group, and the group sets the length of the corporate income tax exemption. For most groups the exemption is capped at the amount invested, excluding land and working capital; the top groups are uncapped.
| Group | CIT exemption | Cap |
|---|---|---|
| A1+ | 10 to 13 years | No cap |
| A1 | 8 years | No cap |
| A2 | 8 years | Capped at the investment |
| A3 | 5 years | Capped at the investment |
| A4 | 3 years | Capped at the investment |
| B | No tax holiday as of right; merit top-ups of 1 to 5 years for some activities | Capped |
Merit incentives (research and development spend, locating in an industrial estate, and similar) can extend a holiday, and strong early revenue can add years, but 13 years is the ceiling across everything combined. Some projects also qualify for a 50% reduction of corporate income tax for up to five years.
On import duties: machinery for the project is exempt, raw materials used in production for export are exempt, items used in research and development are exempt, and raw materials for domestic sale can be reduced by up to 90%.
The ownership side
This is the benefit that matters most to small foreign-owned service companies, and the one least connected to tax. A promoted company can be majority or wholly foreign owned even in activities on Lists 2 and 3 of the Foreign Business Act, where an unpromoted foreign company would need a Foreign Business Licence: the promoted company notifies the Ministry of Commerce and applies for a Foreign Business Certificate instead, which is an administrative step rather than a discretionary approval. The background on the ownership restriction itself is in the 51/49 answer.
The people side
Promoted companies bring in foreign skilled workers and experts under the BOI’s own regime. Extensions of stay run under immigration clause 2.2 (ministry certification, no ratio, no capital test) rather than the general business route, so the four Thai employees rule does not apply. Since BOI Announcement Por. 8/2568, the employment conditions are set by position rather than nationality, and service businesses have no prescribed Thai-to-foreign ratio at all.
Land and money
Promoted projects can be permitted to own land for the promoted activity, which a foreign majority company otherwise cannot, and to remit money abroad in foreign currency.
Whether your activity qualifies at all, and in which group, is the first question a consultant answers, and it is also where fees start: what a BOI application costs has the published numbers, and three quotes on your actual project beat any table.
Related questions
- Can a service business get BOI promotion?
- BOI promotion after approval: which conditions do people forget?
- BOI, LTR or SMART visa: which one fits your situation?
Sources
- PwC Worldwide Tax Summaries, Thailand: tax credits and incentives (BOI groups and exemption periods)
- BOI: A Guide to the Board of Investment, introduction (incentives and basic project criteria)
- Tilleke & Gibbins, Foreign Direct Investment in Thailand: promoted companies and Lists 2 and 3 of the Foreign Business Act
- BOI Announcement Por. 8/2568 on employment conditions for promoted projects (Thai)
This is general information about how a filing works, not accounting or tax advice for your company. Confirm anything that matters against the official notice or with your accountant. Spotted something out of date? Tell us and we will fix it.