Nov 30, 2024
Foreigners registering companies in Thailand can enjoy the following preferential policies:
Tax incentives
Corporate Income Tax Reductions: Foreign-invested enterprises established in specific zones can enjoy income tax reductions for 3-8 years, with a reduction period of up to 5 years. For example, companies investing in key areas such as the Eastern Economic Corridor (EEC) of Thailand can obtain varying degrees of income tax benefits.
Tariff Preferences: Enterprises whose exports exceed 30% of their products are exempt from import duties on raw materials for one year; eligible enterprises can enjoy exemption from VAT and customs duties on imported equipment, and can apply for VAT refunds on domestically purchased raw materials. Within export processing zones, if exports exceed 40%, with the approval of the Investment Board, all customs duties and VAT on imported equipment and raw materials can be exempted.
BOI Corporate Tax Incentives:
Import Duty Reductions: Import duty reductions/exemptions for machinery and equipment; reductions in import duties on raw materials or key materials; exemptions from import duties on materials used in R&D activities; exemptions from import duties on imported raw materials or key materials used in the production of export products.
Corporate Income Tax Exemption or Reduction: Corporate income tax is exempted or reduced by half for net profits derived from encouraged business activities. Projects recognized for "Technology and Innovation Development" are eligible for a 10-year, uncapped corporate income tax exemption.
Cost Deduction from Taxable Income: Transportation, electricity, and water expenses are doubled for taxable income; installation or construction costs of production facilities are deducted at 125% of taxable income.
Dividend Tax Exemption: During the corporate income tax exemption period, dividends distributed to shareholders are exempt from income tax and withholding tax.
Remittance Tax Incentives
Foreign-invested enterprises are exempt from remittance tax. Thailand has signed double taxation treaties with 28 countries, including the United States, Canada, France, Germany, and Australia, eliminating double taxation on income from income in Thailand and treaty countries.
Investment Incentives
Land Leasing Incentives: Companies receiving BOI investment promotion benefits can enjoy certain preferential policies regarding land leasing, such as lower rents and longer lease terms, reducing operating costs.
Work Permit Facilitation: BOI companies enjoy more convenient conditions and faster approval processes when applying for work permits for foreign employees, helping companies attract and retain overseas talent.