Unlocking Opportunities in Thailand: A Guide to the Investment Promotion Act B.E. 2520 (1977)

Thailand has long been recognized as one of Southeast Asia’s most attractive investment destinations, thanks to its strategic location, skilled workforce, and government policies designed to attract foreign capital. For international investors looking to establish or expand their businesses in Thailand, understanding the Investment Promotion Act B.E. 2520 (1977) is crucial.

This Act, implemented by Thailand’s Board of Investment (BOI), plays a key role in facilitating foreign investment through a range of incentives and privileges, making Thailand an even more attractive option for global businesses.

What is the Investment Promotion Act?

The Investment Promotion Act B.E. 2520 (1977) serves as the legal foundation for Thailand’s investment promotion policies. Its primary purpose is to:

✅ Encourage investment in targeted industries that contribute to Thailand’s economic and social development.
✅ Support regional economic growth by attracting businesses to areas outside of Bangkok.
✅ Promote the transfer of technology and knowledge to Thai nationals.
✅ Stimulate job creation and enhance Thailand’s competitiveness on the global stage.

The Act empowers the Board of Investment (BOI) to offer generous tax and non-tax incentives to qualifying businesses, both Thai and foreign.

Who Can Benefit from the Investment Promotion Act?

Businesses across a wide range of industries may qualify for BOI promotion if their projects align with Thailand’s national development goals. Examples include:

Advanced Manufacturing & Smart Industries
Digital Economy & Technology Development
Healthcare, Wellness & Biotechnology
Tourism, Hospitality & Lifestyle
Renewable Energy & Environmental Services
Logistics & Infrastructure

Whether you’re starting a high-tech manufacturing facility, a data center, or a wellness resort, applying for BOI promotion can significantly reduce costs and regulatory burdens.

Key Benefits for BOI-Promoted Companies

Foreign investors who successfully receive BOI promotion enjoy a wide array of incentives and advantages under the Act, including:

1. Tax Benefits

Corporate Income Tax (CIT) Exemption for up to 8 years.
Import Duty Exemption on machinery and essential materials.
Double Deductions on certain infrastructure expenses.

2. Foreign Ownership & Land Rights

Up to 100% foreign ownership, even in sectors normally restricted under the Foreign Business Act.
BOI-promoted companies are allowed to own land used for their business operations.

3. Simplified Work Permits & Visas

Streamlined processes for obtaining and renewing visas and work permits for foreign experts, executives, and skilled workers.
Flexibility for foreign directors to work and reside in Thailand.

4. Profit Repatriation

Full permission to remit profits and dividends abroad in foreign currency, without restriction.

How to Apply for BOI Promotion

The process to obtain BOI promotion under the Investment Promotion Act involves several key steps:

Step 1: Prepare a Comprehensive Business Plan

Your business plan must demonstrate how your project contributes to:

Technology transfer.
Job creation for Thai citizens.
Environmental sustainability.
Regional development (if outside Bangkok).

Step 2: Submit an Application

Applications are submitted directly to the Board of Investment (BOI), which will evaluate your project’s feasibility, technology level, and overall contribution to the economy.

Step 3: BOI Review and Approval

Once your application is reviewed, the BOI will either approve or reject your request for promotion. If approved, you’ll receive an Investment Promotion Certificate detailing your incentives and obligations.

Special Privileges for Regional Investment

Thailand actively promotes investment in less-developed provinces and Special Economic Zones (SEZs) by offering extra incentives, such as:

Longer tax holidays.
Higher caps on foreign ownership.
Additional support for infrastructure and workforce development.

This aligns with Thailand’s goal to spread economic benefits across the entire country, not just Bangkok and major cities.

Complying with BOI Conditions

After receiving promotion, companies must:

Follow all conditions specified in the Promotion Certificate.
Submit regular operational reports to the BOI.
Ensure technology transfer and employee training commitments are fulfilled.

Failure to comply may result in revocation of promotion privileges and other penalties.

Why the Investment Promotion Act Matters to Foreign Investors

For foreign businesses, the Investment Promotion Act B.E. 2520 (1977) offers a clear pathway to navigating Thailand’s regulatory landscape while securing valuable incentives that improve profitability and ease of doing business. It also offers a legal mechanism to exceed the typical 49% foreign ownership limit, making it especially attractive for industries where control and technology transfer are critical.

Whether you are a manufacturer, tech startup, hospitality brand, or logistics operator, leveraging BOI promotion can position your business for long-term success in Thailand.

Thinking About Investing in Thailand? Let Us Help.

If you are considering establishing a business in Thailand, our team can assist you with: ✅ Business structure planning
✅ BOI application and documentation
✅ Legal and regulatory compliance
✅ Visa and work permit processing
✅ Identifying the best investment locations