The corporate lawyer’s team at H&P in Thailand are delighted to share yet another success study case: our client has recently secured Board of Investment (BOI) promotion in business category 8.1 – Software Development, Digital Platforms, and Digital Content Services. This marks a 100% success rate for all applications our law firm have assisted with in this sector, reaffirming our expertise in helping innovative businesses grow in Thailand.
Key Benefits Granted
Through this BOI promotion, the company enjoys a wide range of rights and incentives designed to encourage both foreign investment and local talent development, including:
- Permission to employ foreign experts and skilled workers, together with their spouses and dependents, subject to BOI approval.
- The right for foreign experts to work legally in approved positions within Thailand.
- Permission to own land necessary for the promoted business.
- Exemption from import duties on approved machinery.
- Corporate income tax exemption for eight years, up to 100% of additional qualifying expenses such as:
- Salaries for newly hired Thai IT professionals
- Training costs for Thai personnel in IT fields
- Expenses for obtaining international quality certifications (ISO 29110, CMMI Level 2, or equivalent)
- Carry-forward of losses incurred during the tax exemption period for up to five years after the exemption expires.
- Dividend exemptions from corporate income tax throughout the promotion period.
- Permission to freely remit foreign currency into or out of Thailand.
Project Conditions
As with all BOI projects, the company must comply with general and project-specific conditions, including:
- Training Thai personnel to eventually replace foreign experts, and reporting on their progress.
- Using land and machinery strictly for the promoted business.
- Maintaining separate accounts for the BOI-promoted activity.
- Filing annual progress and performance reports with the BOI.
- Meeting environmental protection standards and ensuring products comply with international quality requirements.
- Completing the project and beginning operations within 36 months.
- Maintaining a minimum paid-up capital of THB 4 million.
- Ensuring at least THB 1.5 million per year is allocated to the salaries of Thai IT professionals.
- Prohibiting the development of software that infringes copyrights or violates ethical and cultural standards.
These incentives not only reduce operational costs but also strengthen long-term sustainability by fostering local talent and ensuring global standards.
The client shared with us the review of our professional work by pointing out that “I’d like to take this time to thank you all sincerely for your exceptional support in getting the BOI processed, we really couldn’t have done it without you”.
How our law firm in Thailand can help?
At Herrera and Partners (H&P), we take pride in guiding companies through the complex BOI application process. Our in-depth expertise and hands-on support ensure that our clients secure maximum benefits while staying fully compliant with BOI requirements.
If you are interested in applying for BOI promotion or would like to learn more about how your business can benefit, please contact us via [email protected]
