Introduction:

Thailand represents one of Southeast Asia’s most promising markets for artificial intelligence. Foreign AI businesses that have been keeping an eye on Thailand AI policy news will be aware that commercial demand for AI solutions is growing rapidly, but the regulatory framework governing AI is still developing. 

Due to the regular developments and updates in AI regulation, companies planning to do business in Thailand should understand the current regulatory framework and anticipated policy changes.

Thailand has been very active when it comes to AI policy planning. The National AI Strategy and Action Plan (2022–2027) sets the government’s direction, the Personal Data Protection Act B.E. 2562 (PDPA) has been fully enforced since June 2022, and the Electronic Transactions Development Agency (ETDA) held public hearings on draft AI legislation throughout 2025. 

This guide covers the essential Thailand AI policy news you should be aware of, including the current state of Thailand’s AI policy framework, the PDPA obligations of an AI company, the BOI incentives available to technology businesses, how to structure your company for market entry, and the upcoming regulation you should be preparing for now.

Key Points

• Thailand does not yet have a standalone AI law, but foreign businesses must already comply with the PDPA, the Foreign Business Act, and sector-specific regulations while a dedicated AI Act is being drafted.
• The PDPA applies to any company processing personal data of people in Thailand regardless of where the company is based.
• The BOI offers significant incentives to AI companies, including 100% foreign ownership, corporate income tax exemptions of up to eight years, and relaxed work permit requirements that bypass the standard four-to-one Thai-to-foreign employee ratio.
• The ETDA is consolidating earlier draft instruments into a single risk-based AI framework expected to introduce prohibited-risk and high-risk AI classifications, mandatory impact assessments, and expanded enforcement around automated decision-making.

What Is Thailand’s Current AI Policy Framework?

Thailand has not yet implemented a standalone AI law as of 2026. Instead, the framework governing AI is based upon the National AI Policy and Ethics Guidelines developed by NSTDA and NECTEC, the Personal Data Protection Act B.E. 2562 (PDPA), and sectoral regulations issued by bodies such as the Bank of Thailand, the FDA, and the SEC for fintech and health AI applications.

The Ministry of Digital Economy and Society (MDES) also plays an important role in AI governance, while the Digital Economy Promotion Agency (DEPA) focuses on industry promotion and skills development. Together, they coordinate Thailand’s approach to balancing innovation and oversight. 

The National AI Strategy 2022–2027 has worked towards setting targets for AI professionals, startup development, and sectoral adoption across healthcare, agriculture, and government services.

The Board of Investment Thailand (BOI) has also designated AI and digital services as a targeted S-curve industry. 

The absence of a dedicated AI law creates both opportunity and uncertainty for foreign businesses and investors. Foreign investors can currently operate AI services without AI-specific licensing, but must comply with the PDPA, the Foreign Business Act (FBA), and any sector-specific rules that apply. 

While Thailand does not yet have a dedicated AI law, the current framework already provides guidance through data protection rules, sector regulations, and national strategy initiatives. For businesses operating in the AI sector, this means that compliance still requires careful attention to existing laws such as the PDPA and the Foreign Business Act, alongside any industry-specific requirements. As Thailand continues developing its approach to AI governance, companies entering the market should stay informed about regulatory developments and structure their operations in a way that can adapt as new policies emerge. 

At Lex Nova, our team closely monitors Thailand AI policy news allowing us to keep our clients up to date and compliant with current obligations and ready for any new ones.

PDPA and AI: What Foreign Companies Must Comply With

The Personal Data Protection Act B.E. 2562 (PDPA) has been fully in force since June 2022. This is one of the most important areas of Thailand’s data protection law for AI companies, and a focus of Thailand AI policy news. 

The PDPA applies to any company processing personal data of individuals in Thailand, regardless of where that company is based. If your AI product collects, analyses, or stores data from Thai users, you are subject to the PDPA.

AI businesses typically trigger four key PDPA obligations. First, you must establish a lawful basis for processing personal data, consent is the most common basis, but legitimate interest and contractual necessity also apply in specific contexts. 

Second, you must respect data subject rights, including the right to access, correct, and delete personal data. 

Third, in the event of a breach, you are required to notify the Personal Data Protection Committee (PDPC) within 72 hours. 

Fourth, the PDPA restricts cross-border data transfers, meaning data sent outside Thailand must be suitably protected through mechanisms such as Binding Corporate Rules or Standard Contractual Clauses.

AI can create PDPA risks in several ways under Thailand data protection law. Training data may contain personal data that was not collected with appropriate consent for AI use. Profiling and automated decision-making create transparency obligations as individuals have the right to know when decisions affecting them are made by AI. Vendors and third-party processors require formal data processing agreements. Without these, your business is in breach of its PDPA requirements and may be subject to any penalties.

Penalties under the PDPA Thailand are significant. Administrative fines can be up to 5 million THB per violation. Criminal penalties include fines up to 1 million THB and imprisonment of up to one year for intentional misuse of sensitive data. The PDPC has also moved away from awareness-building to active enforcement. For example, in August 2025, the regulator issued over 21.5 million THB in administrative fines across multiple cases in both the public and private sectors.

The Personal Data Protection Commission (PDPC) is the enforcement authority introduced to make sure the PDPA is properly enforced. The PDPC has been increasingly active since 2024, when it issued its first major penalty of 7 million THB against an online retailer. 

The PDPC operates a “zero data breach” policy that suggests that enforcement under PDPA Thailand will continue to grow. Foreign AI businesses monitoring Thailand AI policy news should ensure that if they do enter the Thai market they are fully aware of their obligations under the PDPA.

BOI Incentives for AI and Technology Businesses

The BOI has identified AI as a priority sector and actively promotes AI, software, and digital services as an important industry under Thailand’s S-curve policy. For foreign companies, this means access to significant benefits that can really help operate a business as a foreign er in Thailand. 

Benefits include, 100% foreign ownership, substantial tax holidays and operational incentives such as reduced work permit requirements offer a significant advantage in the BOI Thailand technology landscape.

Eligible Activities for AI Companies in Thailand

The main BOI promotion categories relevant to AI businesses include Activity 8.1.1 for software development, digital platforms, and digital content. Related activities in automation and robotics and smart electronics may also apply depending on your specific operations. Eligibility depends on the nature of your AI activities, and proper classification at the application stage is important.

If you are an AI company considering entering the Thai market and applying for a BOI promotion, why not talk to one of our experts. We recommend undertaking an eligibility assessment to confirm whether your business activities are eligible for a promotion and under which category you can apply.

What Benefits and Incentives are Available to AI Companies with a BOI Promotion

The key BOI incentives for eligible projects include 100% foreign ownership, corporate income tax (CIT) exemption for typically five to eight years, import duty exemptions on machinery and essential equipment, and permission to hire foreign skilled workers with reduced requirements. 

The 100% foreign ownership benefit is the most important benefit for BOI Thailand technology projects. BOI-promoted companies can be wholly foreign-owned in activity categories that would otherwise require a Foreign Business License under the Foreign Business Act. This removes the need for Thai majority shareholders and gives you full control over corporate structure, IP, and management.

For AI companies, the reduced requirements for work permit facilitation are particularly important, BOI-promoted companies are not bound by the standard four-to-one Thai-to-foreign employee ratio. 

The Eastern Economic Corridor (EEC) offers additional incentives for tech businesses, including extended CIT exemptions and land ownership options in designated zones. Digital and AI investments were among the BOI’s top priority sectors for 2025, with over 500 billion THB in new and planned tech investments attracted through high-level government engagement. For businesses following Thailand ai policy news, the EEC represents one of the most attractive investment zones in Southeast Asia.

It is important to note that your BOI application in Thailand for AI-related activities requires demonstrating technology transfer or capability development in Thailand. This includes workforce training plans, collaboration with Thai institutions, and commitments to developing local talent. The application must be positioned correctly from the outset, misclassification or weak positioning can result in rejection or reduced incentives. Our experts have experience in assisting with BOI applications and can provide assistance from determining eligibility, preparing your application and interview to post approval compliance.

Read more:

BOI INCENTIVES NEWS: Latest Updates For Foreign Investors (2026)

Upcoming AI Regulation: What Is Coming in 2026 and Beyond

Thailand is currently developing a dedicated AI Act, which is one of the most important areas of Thailand AI policy news for foreign businesses to follow. In May 2025, the Electronic Transactions Development Agency (ETDA) held public sessions on Draft Principles for AI Legislation and accepted public comments through June 2025. 

These draft principles consolidate two earlier instruments, the 2022 Draft Royal Decree on Business Operations Using AI Systems and the 2023 Draft Act on the Promotion and Support of AI Innovation, into a single framework.

Three further developments are also expected. First, a risk-based AI classification system similar to the EU AI Act. This system will be used to distinguish between prohibited-risk AI (systems whose harm cannot be mitigated) and high-risk AI (permitted subject to strict governance duties). 

Secondly, mandatory AI impact assessments will be required for high-risk applications in healthcare, financial services, and HR decision-making. 

Finally, expanded PDPC enforcement around automated decision-making and profiling, building on the PDPA’s existing framework.

In preparation of these developments, businesses working with AI in Thailand should begin preparing for a more structured regulatory environment. Establishing clear data governance policies, appointing data protection officers where appropriate, and documenting AI risk management processes can significantly reduce the burden when new requirements such as AI risk classifications and impact assessments are introduced. Taking these steps early is more convenient rather than attempting to adjust systems after new regulations take effect.

Thailand has also signed onto the ASEAN Guide on AI Governance and Ethics, ratified in 2024, and the ASEAN Responsible AI Roadmap (2025–2030) adopted in March 2025. These will establish regional harmonisation of AI governance principles, including transparency, fairness, and accountability. 

Thailand AI policy news shows that Thailand is actively shaping regional standards. Regulatory monitoring is ongoing work, to ensure companies stay on top of their obligations and reduce any potential risks. 

Common Legal Challenges for Foreign AI Companies in Thailand

While Thailand offers exciting opportunities for AI companies, foreign businesses entering the market should also be aware of several legal and regulatory challenges. These issues often arise at the intersection of data protection, foreign ownership rules, employment requirements, and tax compliance. As frequently highlighted in Thailand AI policy news, understanding these risks early can help AI companies structure their operations correctly and avoid costly adjustments later.

PDPA compliance for AI training data 

Many foreign companies are unaware that data scraped or licensed for AI model training may include personal data of Thai individuals. By using this data, AI businesses are subject to the full PDPA obligations. 

If training data was not collected with appropriate consent for AI use, you face significant risks from the beginning. Understanding the PDPA Thailand requirements regularly saves significant cost and legal exposure.

Work permit quotas for technical talent

AI companies usually rely on foreign engineers, data scientists, and developers, but the standard four-to-one Thai-to-foreign employee ratio can be a large obstacle for tech teams. Applying for a BOI promotion resolves this by providing more flexible foreign employee quotas and faster processing. 

Every foreign employee in Thailand needs to obtain the correct Visa and Work Permit. This requirement also applies to companies promoted by the BOI, however BOI companies are not subject to the same requirements as other company structures. For example, BOI promoted companies are not restricted by the same mandatory capital (2 million THB) and minimum Thai staff (4 Thai employees) requirement for each foreign employee.

In order for the company to be able to hire foreign staff, they must register their company into the Single Window for Visas & Work Permits system (formerly known as the E-Expert system). Registration on the Single Window system will allow the company to make future requests for foreign workers.

After a post has been submitted, opened, and accepted through the Single Window for Visas & Work Permits system, the applicant may apply for their visa and a work permit.

BOI companies benefit from streamlined immigration privileges. We coordinate work permits, long-term extensions and dependent visas through our Thailand immigration and visa services.

Two less significant challenges highlighted through Thailand’s AIpolicy news include, IP ownership in employee AI outputs. In such a situation, Thai intellectual property law applies to works created by employees in Thailand, and your employment contracts must clearly address AI-generated IP to avoid disputes. Our Thailand labor law and employment compliance team can assist and advise on these provisions. 

Secondly, VAT registration for digital services: foreign companies selling digital services to Thai customers must register for VAT, and doing business within the Thailand AI landscape requires careful attention to indirect tax obligations.

Why Foreign AI Companies Choose Lex Nova Partners

Lex Nova Partners is an international law firm based in Bangkok providing corporate, immigration, tax, and compliance services to foreign businesses entering Thailand. Our legal team in Bangkok works with technology companies, investors, and entrepreneurs who need practical, results-oriented legal support.

The main advantage for foreign AI businesses is our full-service approach. Our team can assist with corporate structuring, BOI applications, work permits, and PDPA compliance in a coordinated way. Working with multiple specialist firms creates gaps, delays, and conflicting advice. 

Lex Nova can handle everything from one office, ensuring that your corporate structure supports your tax position, your BOI promotion aligns with your immigration needs, and your data compliance programme is compliant from the beginning.

Lex Nova offers solutions based on our experience with technology sector clients and BOI applications for digital businesses. This means we understand the specific challenges AI companies face in Thailand. We help our clients stay ahead of Thailand AI policy news and translate regulatory developments so our clients know exactly where they stand.

Frequently Asked Questions About AI Policy and Regulation in Thailand

Does Thailand have an AI law?

No, Thailand does not have a standalone AI law as of early 2026. The country’s AI governance currently rests on the PDPA, the National AI Strategy and Action Plan (2022–2027), and sector-specific regulations from bodies such as the Bank of Thailand and the SEC. However, the ETDA held public hearings on Draft Principles for AI Legislation in mid-2025, and a dedicated AI Act is expected to be prepared in 2026. Foreign businesses should prepare for a risk-based classification system that will impose specific duties on high-risk AI applications.

What is Thailand’s AI policy for foreign companies?

Thailand’s AI policy for foreign companies is defined by the requirements of the PDPA and the Foreign Business Act. Foreign AI businesses must comply with data protection obligations, obtain the correct business licence or BOI promotion for their activities, and secure work permits for foreign employees. The government actively encourages foreign AI investment through BOI incentives, including tax holidays and 100% foreign ownership.

How does PDPA affect AI businesses in Thailand?

The PDPA imposes direct obligations on any AI business processing personal data of individuals in Thailand. AI businesses must have a lawful basis for data processing, respect data subject rights to access, correction, and deletion, notify the PDPC of data breaches within 72 hours, and comply with cross-border data transfer restrictions. 

AI-specific risks include training data containing personal data, profiling obligations, and the need for formal data processing agreements with vendors. Non-compliance carries administrative fines up to 5 million THB and potential criminal penalties.

Can a foreign company use AI services in Thailand?

Yes, a foreign company can use and provide AI services in Thailand, but it must comply with the Foreign Business Act and the PDPA. Most AI services fall under List 3 of the FBA, meaning majority foreign ownership requires either BOI promotion or a Foreign Business License. Companies providing AI services to Thai customers must also register for VAT on digital services and ensure PDPA compliance for any personal data they process. 

Obtaining a BOI promotion is the most common route for foreign AI companies because it provides tax incentives, full foreign ownership, and work permit facilitation.

What are the data privacy requirements for AI companies in Thailand?

AI companies in Thailand must comply with the PDPA’s full requirements: obtaining consent or establishing another lawful basis for data processing, providing clear privacy notices, respecting data subject rights, reporting breaches within 72 hours, appointing a Data Protection Officer where required, and ensuring adequate safeguards for cross-border data transfers. 

The PDPC has been actively enforcing the PDPA since 2024, with total fines exceeding 21.5 million THB as of August 2025. This enforcement trend is a key part of Thailand AI policy news that every foreign company should monitor. AI companies face particular scrutiny because training data, automated profiling, and algorithmic decision-making all create specific compliance obligations under the PDPA.

Does Thailand’s BOI support AI and technology businesses?

Yes, the BOI actively supports AI and technology businesses through investment promotion incentives. Software development, digital platforms, and digital content fall under Activity 8.1.1, which offers corporate income tax exemption for up to eight years, import duty exemptions, and flexible foreign employee quotas. 

The BOI has also designated digital and AI as a priority sector for 2025–2026, and total tech investment applications exceeded 500 billion THB in 2025. To get in touch about your BOI application, contact our team.

What licenses does an AI company need to operate in Thailand?

An AI company in Thailand typically needs either a BOI promotion certificate or a Foreign Business License to operate with majority foreign ownership.

If your AI application is active in regulated sectors such as financial services or healthcare, you may also need sector-specific licences from the relevant Thai regulator. The specific combination of licences depends on your company’s activities, ownership structure, and target market.

How do I set up an AI company in Thailand as a foreigner?

The most common route is to apply for BOI promotion under the software and digital services category, register a Thai limited company with 100% foreign ownership, obtain work permits for your foreign team. The process typically takes four to six months from BOI application to operational readiness. 

As Thailand AI Policy news continues to point towards tighter regulation, early movers benefit from establishing compliant structures before new rules take effect. Structure, tax, and immigration decisions must be coordinated from the start to avoid delays and restructuring costs. Professional legal support ensures the process runs efficiently and compliantly.

Please note that this article is for information purposes only and does not constitute legal advice

Introduction:

Thailand’s Board of Investment and the incentives it offers to eligible companies remains one of the most attractive options available to foreign investors entering or expanding in the Thai market. 

Recent BOI incentives news highlights why the BOI continues to attract international businesses, offering benefits that are not available to non-BOI companies. Approved projects may qualify for 100 percent foreign ownership, reduced work permit requirements, corporate income tax exemptions for up to thirteen years, import duty exemptions on machinery and raw materials, and permission to own land for business operations. 

These incentives are highly attractive to foreign investors as they remove many of the regulatory barriers faced by foreign-owned businesses in Thailand.

Key Points

• BOI promotions offer benefits not available to non-BOI companies, including 100% foreign ownership, reduced work permit requirements, corporate income tax exemptions, import duty exemptions, and land rights for approved activities.
• BOI eligibility is broader than many assume, covering a wide range of industries (manufacturing, agriculture, digital, machinery, logistics, utilities, etc.), while service-based businesses that do not qualify may still have an option through TISO (no tax incentives, but supports 100% foreign ownership).
• Application success depends on preparation and project positioning, including consistent documentation, a credible 3-year business plan, and a strong interview presentation explaining commercial viability and economic contribution.
• After the company has been awarded a BOI promotion and operations have begun, ongoing compliance becomes a real risk area, with mandatory BOI reporting at 6 months, 1 year, and 2 years, and a possible financial review after 3 years; non-compliance can result in warnings, suspension of benefits, or promotion withdrawal with tax clawbacks.

What Makes Thailand’s BOI Incentives Unique? (2026 Overview)

Thailand’s Board of Investment (BOI) is a government agency responsible for promoting and facilitating foreign investment under the Investment Promotion Act B.E. 2520 (1977). Established in 1966, the BOI operates under a unique legal framework that allows promoted businesses to benefit from incentives and ownership structures not available to standard Thai companies, specifically designed to attract and support foreign capital.

The key benefits of a BOI investment promotion include:

• Eligibility for 100 percent foreign ownership
• Corporate income tax holidays of up to 13 years
• Import duty exemptions on machinery and qualifying materials
• Possibility to own land
• Reduced requirements to support work permit and visa processing

Recent data released by the Ministry of Commerce Thailand highlights the impact of these incentives. Between January and November 2025, foreign investment into Thailand reached THB 311.16 billion, representing a 45 percent year-on-year increase. A total of 973 foreign companies were approved, creating 5,718 Thai jobs. BOI-promoted projects accounted for approximately 74.7 percent of total investment value, with strong inflows from Singapore, Japan, China, Hong Kong, and the United States. Notably, the Eastern Economic Corridor (EEC) alone attracted 33 percent of all foreign capital.

For foreign investors, BOI promotion provides advantages that are not available through standard company structures due to the restrictions imposed by the Foreign Business Act. Non-BOI structures are typically subject to foreign ownership limits and limited tax relief options, whereas obtaining a BOI promotion certificate can open access to enhanced ownership rights, tax incentives, and increased operational flexibility.

With new or updated BOI incentives and promotion rules expected to be introduced in 2026, staying up to date with BOI incentives news and BOI promotion news is highly recommended. Checking your eligibility for a BOI promotion is always recommended for foreign investors as a successful application will have a real impact on how successfully a foreign investment can operate in Thailand.

For more information about the BOI and whether your project will be eligible for a BOI, please feel free to contact our team of experts here.

BOI Incentive Plans for 2026

The Board of Investment regularly reviews and updates its promotion policies to reflect current economic conditions, industrial capacity, and Thailand’s long-term development objectives.

During the BOI’s December meeting, a series of targeted policy updates for the 2026 to 2027 period were announced. The Board also announced the extension of several investment promotion measures to support Thailand’s “Driving the Economy towards the New Economy” strategy. These include continued support for business retention and expansion, structured relocation incentives for full business transfers, and additional measures supporting economic recovery, automotive industry upgrading, joint ventures in automotive parts manufacturing, and community-focused development initiatives.

At Lex Nova, our team makes sure we stay up to date with all the BOI incentives news and the latest BOI policy changes, in order to be able to provide the most accurate and up to date advice for our clients.

1. New S-Curve Industry Expansions (January 2026) 

Thailand’s S-Curve industries are a government economic development strategy focusing on a group of targeted sectors to transform the country from a middle-income to a high-income nation.

Through the support and development of the S-Curve Industries, the Government hopes to move Thailand up the value chain by promoting innovation, research and development, and advanced technology in these sectors. It’s part of the broader “Thailand 4.0” economic model launched around 2016 to reduce dependence on traditional manufacturing and low-skilled labor.

Read more:

Thailand’s S-Curve Industries: Driving Economic Growth & Innovation

In response to changing economic developments and technological advancements, the Thai government has expanded Thailand’s S-Curve industries. The “New S-Curve Industries” now include smart agriculture, electric vehicles, automation systems, data centers supporting artificial intelligence, and wellness and medical services. 

The government also introduced new AI and automation subcategories, including quantum computing, advanced robotics, and generative AI, increasing the scope of activities eligible under the BOI.

For foreign investors, these new BOI incentives Thailand offers in 2026 create a clear first-mover advantage. Early applicants under the BOI incentives update for 2026 benefit from reduced competition and access to standard eight-year corporate income tax exemptions across a wider range of AI-related activities. Supporting this expansion, the government’s “Quick Big Win” policy prioritizes workforce development through initiatives targeting 100,000 high-skilled workers via reskilling, upskilling, and graduate preparation programs.

S-Curve Industries Take Center Stage in 2026 Election

As Thailand prepares for elections on February 8, 2026, the S-Curve industries have become an important focus of the major parties, highlighting just how important they have become to the Thai economy. 

Major political parties consider the New S-Curve sectors, particularly electric vehicles, AI-driven services, and data centers, as key sectors to support and grow the economy.

The Bhumjaithai Party (the previous ruling party) is promoting its “Economy 10 Plus” policy, targeting growth of at least 3% through New S-Curve industries including EVs, smart agriculture, automation systems, and AI-enabled data centers. 

Meanwhile, Pheu Thai proposes using artificial intelligence to strengthen Thailand’s existing developments in food production and healthcare, aiming to establish the country as a global AI hub in these specialized sectors. 

As Thailand expands its S-Curve strategy to include AI, automation, and advanced technologies, foreign investors have an opportunity to become first movers within these industries. 

Lex Nova is available to assist clients by assessing eligibility, identifying which BOI promotion categories may apply, and advising on the most suitable structure for the proposed business activities. We also support clients throughout the BOI application process, from preparing documentation to liaising with the relevant authorities.

Enhanced Eastern Economic Corridor (EEC) Benefits 

The Eastern Economic Corridor (EEC) forms an important part of Thailand’s 4.0 strategy and is a special economic zone covering the provinces of Rayong, Chonburi, and Chachoengsao on the Eastern Seaboard. 

The EEC focuses on developing and supporting advanced, future-focused industries, including next-generation automotive, intelligent electronics, advanced agriculture and biotechnology, medical and high-value tourism, and digital technologies.

To attract foreign investment, Thailand’s Board of Investment offers generous incentives for qualifying EEC projects. These include up to 100% foreign ownership, corporate income tax exemptions of up to 15 years, import duty exemptions, matching grants, and a reduced personal income tax rate of 17%.

Read more:

Thailand 4.0 and the Eastern Economic Corridor

Updates to the EEC

On November 3, 2025, Thailand’s EEC Policy Committee approved the Digital Infrastructure Development Plan (2024-2027). The Digital Infrastructure Development Plan (2024-2027) has been designed to help transform the Eastern Economic Corridor into ASEAN’s Digital Hub.

As part of the plan, there are two main strategies to support the transition: developing digital infrastructure for economic growth and improving the efficiency of digital technologies.

This will be achieved through upgrading telecommunications infrastructure for international internet networks, aligning digital infrastructure with transportation and utilities, updating digital activity regulations, and advancing smart city development with digital technology. 

How the EEC can Help Foreign Investors

From 2026 onward, the Digital Infrastructure Development Plan (2024 to 2027) is expected to strengthen the Eastern Economic Corridor (EEC) as a leading digital hub in ASEAN. For foreign investors, this creates an opportunity to start or relocate an existing business to a high-growth operating environment backed by significant government investment and enhanced Board of Investment incentives.

For businesses with regional or global operations that rely on stable digital infrastructure, recent updates to the Eastern Economic Corridor (EEC) place a strong emphasis on upgrading international internet gateways and telecommunications networks. These improvements are designed to support low-latency, high-capacity connectivity, which is needed for cross-border operations, cloud-based systems, data-intensive services, and real-time digital platforms.

Regulatory processes within the EEC have also been streamlined. The EEC One-Stop Service (EEC-OSS) now offers more than 50 digital services, allowing investors to apply for permits, construction approvals, and investment incentives through a single online platform. This reduces administrative friction and shortens approval timelines for new projects.

To support large-scale investments, Thailand has introduced the Fast Pass program within the EEC. This framework is designed to minimise bottlenecks for business activities operating in priority sectors such as data centres, clean energy, and advanced technology. The Fast Pass program should help investors move from approval to implementation more quickly.

Access to skilled talent is another benefit for foreign investors. Under the EEC’s demand-driven workforce model, the government aims to train up to 100,000 workers by 2027 in areas such as artificial intelligence, data engineering, and cybersecurity. This approach is intended to align workforce development directly with the needs of foreign-led and technology-driven industries.

Sustainability & Environmental Compliance Requirements 

From March 2026, the BOI will introduce stricter sustainability criteria aligned with Thailand’s BCG economy strategy and its 2050 carbon neutrality target. Promoted projects will need to demonstrate measurable carbon reduction targets, renewable energy usage, and circular economy principles. 

Projects that exceed these sustainability standards may qualify for an additional one-year corporate income tax exemption. In practice, applications will require an environmental assessment and a clear sustainability roadmap, which is likely to add two to four weeks to the preparation timeline. These changes signal a stronger policy shift toward sustainability and the promotion of green industries.

Which Industries Qualify for BOI Incentives in 2026?

There is a common misconception that BOI promotions are only available for technologically advanced or high-tech business activities. However, in reality, activities eligible for a BOI promotion cover a wide variety of areas such as manufacturing, agriculture, software, machinery, etc. 

Any potential business whose business activities are service based and don’t satisfy these criteria may be eligible for a TISO promotion instead.

The following business activities are the areas in which companies may be eligible to receive a promotion (please note each activity may be subject to certain conditions and requirements from the BOI):

What Benefits Do BOI-Promoted Companies Receive?

The BOI remains highly attractive to both Thai and foreign investors because of the incentives available to approved projects. These benefits are not available to ordinary companies in Thailand and play an important role in reducing many of the restrictions and barriers that foreign businesses face. 

In addition to tax incentives, BOI promotion can provide 100% foreign ownership rights, easier access to work permits and visas for foreign staff, and relief from certain regulatory limitations. As a result, BOI status not only improves financial efficiency but also makes it significantly easier for foreign investors to establish and operate a business in Thailand.

Tax Incentives (Corporate Income Tax) 

The BOI may grant a corporate income tax exemption, often referred to as a tax holiday, for up to 13 years, depending on the nature of the business activity and its location. Projects located in industrial estates or promoted industrial zones may receive an additional year of CIT exemption, while companies operating in designated Investment Promotion Zones can be eligible for a further three years of tax relief. 

These tax benefits from the BOI are designed to support strategic industries and regional development. However, not all BOI promotions include a tax holiday, and the duration of any CIT exemption ultimately depends on the specific activity and promotion category approved by the BOI.

The CIT exemption applies only to income generated from the activities for which the BOI promotion was awarded too. Any revenue derived from non-promoted activities remains subject to Thailand’s standard corporate income tax rate. 

Companies with BOI promotion must maintain clear and accurate separation between promoted and non-promoted income streams to support correct accounting and avoid potential issues in the future.

Import Duty Exemptions 

A BOI promotion can provide an import duty exemption for machinery import used in promoted production activities, reducing import duty to 0% compared with the standard Thai rates of 5 to 30 percent. 

This benefit applies to both initial project setup and approved expansion phases. Certain raw materials imported for research and development may also qualify for exemption, while production material relief is considered on a case by case basis and may carry re-export conditions. 

General Business Benefits

Alongside the tax incentives, the Board of Investment (BOI) offers a variety of general business benefits to attract foreign investors. These incentives are designed to improve the competitiveness of businesses in Thailand.

These benefits help companies overcome many of the barriers non BOI promoted companies are faced with. The most important general business benefits include:

1. 100% Foreign Ownership: The BOI allows foreign investors to hold up to 100% of the registered capital in most promoted activities.
2. Land Ownership Rights: BOI companies can own 1 Rai, certain BOI promotions for specific business activities are allowed to own larger plots of land. 
3. Work Permit and Visa Facilitation: BOI companies are able to hire foreign staff with significantly reduced requirements when compared to non-BOI promoted businesses. Unlike other structures, BOI-promoted companies face no quotas when hiring foreign skilled employees. For example, Thai Limited Companies typically need a 4:1 ratio of Thai to foreign employees, but this requirement doesn’t apply to BOI-promoted businesses.
4. Support for R&D: Projects may receive import duty exemptions on goods imported for research and development purposes.
5. Special Economic Zones: Additional incentives are available for investments in designated Special Economic Zones (SEZs) to promote regional development. Special economic zones can be found in the following areas in Thailand.

The combination of BOI benefits and BOI incentives available to a project depends on the specific activity, technology level, and location of the investment under Thailand’s investment promotion framework. 

Properly preparing and structuring the BOI application is highly important for maximizing both tax and non-tax advantages. Lex Nova’s team of BOI experts can help applicants calculate their projected benefit value across categories to help optimize BOI applications for stronger long-term returns. Consider speaking with our team for a tailored consultation.

How to Apply for BOI Promotion: 2026 Process

The BOI application process can be detailed and requires careful preparation at every stage. Proper planning, preparing accurate documentation, and a clear project structure help reduce the risk of delays or requests for additional clarification or information from the BOI. Our team supports investors throughout the process, from assessing eligibility and structuring the project to preparing the application and coordinating with the relevant authorities, helping the submission progress as efficiently and smoothly as possible.

Step 1: Pre-Application Assessment (Feasibility Study)

A business feasibility study helps companies evaluate the viability and likelihood of success of a BOI application before committing significant time and resources. As part of this eligibility assessment, Lex Nova’s BOI specialists liaise directly with BOI officers to confirm that the proposed business activity qualifies for promotion and that such activities remain supported in practice. 

By using our extensive experience handling BOI applications across a wide range of industries, Lex Nova also provides practical insight that goes beyond published BOI guidelines. In addition to reviewing formal eligibility criteria, our team includes real-world feedback based on how applications are assessed in practice.

This includes highlighting commonly asked questions, document expectations, operational clarifications, and other commonly asked questions that BOI officers ask about during the interview.

This knowledge is based upon the cases we have assisted with, and the direct observations gained through managing BOI applications. It reflects common patterns, officer expectations, and understanding the approaches that businesses typically only discover during the application process itself.

By integrating these practical insights with formal BOI requirements, we help applicants anticipate areas of common scrutiny, prepare stronger supporting documentation, and present their project in a way that satisfies how BOI officers evaluate proposals in practice.

This helps to reduce the risk of delays, following questions or information requests, or rejection due to avoidable issues. By combining regulatory knowledge with hands-on application experience, we help prepare each application in a way that aligns both with BOI policy and with how officers evaluate submissions.

We also clarify the key BOI requirements that may be required, giving clients clear, practical insight from the very beginning so they can make informed decisions.

Completing a feasibility check is highly recommended, as selecting the correct promotion category at the beginning is important. It is not uncommon for an application to proceed to the interview stage before the BOI decides it was submitted under the wrong category, requiring the process to restart and causing significant delays.

By performing a feasibility study, clients save time, reduce risk, and improve the overall chances of their BOI application. Our BOI experts are available to assist with a structured eligibility review.

Timeline: 3 business days

Step 2: Document Collection and BOI Application Preparation (2-4 weeks)

As part of the application process, companies must submit application forms and documents relating to the company’s specific business category and proposed activities.

A successful BOI submission depends heavily on meeting detailed BOI application requirements and preparing accurate, well-supported BOI documentation. Important information required includes the company’s registered capital structure and funding source, a clear project description, an employee chart outlining Thai and foreign hiring plans, a list of machinery, software, and equipment to be used, and examples of existing clients and business prospects to demonstrate commercial viability.

The 3-Year Business Plan

A three-year business plan is one of the most important parts of the BOI documentation. The BOI uses this plan to assess minimum investment levels and overall project feasibility. Careful structuring is important, as investment can be split between equity and shareholder loans, subject to BOI limits. While projections are not strictly binding, major changes from the approved project scope can create issues during audits, so keeping in a broad line with approved activities remains important.

Because the forms are dynamic, figures entered in one section may affect other parts of the submission. Proper coordination during the application process helps avoid inconsistencies that may trigger follow-up questions and subsequent delays.

Additional Submission Materials

Further BOI requirements for the application process include a detailed employee list with positions and salaries, asset acquisition details, and software information for digital projects. Appendices can be used to provide deeper technical and operational explanations. A presentation deck is also required, outlining the business model, client base, market strategy, and project rationale.

Strong applications clearly demonstrate commercial viability. Established parent company backing, existing clients, and realistic financial projections all help support the application and can significantly improve approval chances.

After submission, the BOI officer typically requests clarifications to verify that financial projections are commercially reasonable. Several rounds of review may occur before approval.

Step 4: BOI Review & Interview

After the BOI application is accepted, the applicant is invited to schedule a project presentation meeting with the BOI. Several time slots are typically offered, and the interview will be held via Zoom, lasting around one hour. 

The interview is a highly important part of the BOI evaluation criteria, as it allows officers to assess the project’s feasibility, business model, and overall contribution to Thailand.

Applicants must prepare a presentation deck explaining the company background, project scope, production or service process, existing and target clients, business development plans, reasons for choosing Thailand, and expected economic benefits. To support this, Lex Nova will provide clients with a structured template and guidance on BOI expectations. We also conduct a rehearsal interview to prepare clients for the actual discussion.

During the meeting, applicants generally present for 15 to 30 minutes, followed by questions from the BOI officer. Our experts attend to clarify technical points and address concerns in real time. In practice, the BOI may suggest adjustments to the project scope during the interview, and having professional support allows amendments to be made efficiently and resubmitted quickly.

The interview strongly influences the BOI approval timeline. The interviewing officer prepares the report presented to the BOI Committee, so a clear, well-structured presentation improves the chances of quickly moving onto the next steps. When the officer fully understands the project and is happy that the BOI evaluation criteria has been satisfied, approvals may proceed more quickly, often after only limited follow-up.

Following the meeting, the officer submits the case to the BOI Committee. Strong applications move forward to the stage quickly, while incomplete or inconsistent submissions may significantly extend the BOI approval timeline.

We are often asked, how long does BOI approval take. Well-prepared cases may move forward after one or two review rounds, while unclear applications can face delays of many months due to the back and forth between the applicant and the BOI.

The final time frame for approval will depend on the level of investment of the project. For example, if your project falls within these bands of investment, this is the expected approval times:

1) Less than 200 million THB – 40 working days

2) Less than 2,000 million THB – 60 working days

3) More than 2,000 million THB – 90 working days

Certificate Issuance & Conditions

Once BOI the application has been accepted and approved, the applicant receives an approval letter outlining the promotion conditions. The applicant has 30 days to accept these terms. Extensions may be granted at the BOI’s discretion. After acceptance, the investor has six months to register a company or align an existing company and complete the minimum investment required before applying for the BOI certificate, also known as the certificate of promotion.

Company Registration

A Thai limited company must be established or adjusted to match BOI conditions. Requirements include two individual shareholders at incorporation, at least one director, registered capital aligned with BOI investment conditions, and a Thai registered address.

After registration, shares may be transferred to foreign corporate shareholders, while maintaining the legal shareholder structure required under Thai law.

Corporate Bank Account Opening

The company must open a Thai bank account to receive the capital investment. This account is required to produce banking evidence confirming compliance with BOI funding conditions. 

Applicants should be aware that one of the authorised directors must be present during the bank account opening. In practice, Thailand makes it difficult for foreigners without long-term visas to open bank accounts. However, on a case-by-case basis, it is possible to explain that the company is fully foreign-owned, which is essential for depositing funds and operating within the necessary frameworks.

Capital Investment Transfer

Funds must be transferred from overseas in foreign currency according to foreign ownership proportions. Banks must issue a credit advice note, which the money came from abroad as a foreign currency. This is a mandatory requirement and will be required by the BOI.

Apply for the BOI Certificate

After completing all the above steps, the company submits documentation to obtain the BOI certificate. This includes corporate registration documents, shareholder lists, and proof of investment. Issuance of the certificate of promotion formally activates BOI privileges.

Foreign Business Certificate (if applicable)

If the projects approved business activities fall under the Foreign Business Act, a Foreign Business Certificate must be obtained before operations begin. This allows the foreign-owned BOI company to legally conduct restricted activities.

Post-Approval Compliance (Ongoing)

Companies who have been awarded a promotion must follow ongoing BOI compliance duties. BOI reporting requirements include annual progress reports (F-ONE form), investment updates, employment breakdowns between Thai and foreign staff, audited financial statements, and production or service volume reports. 

These BOI obligations confirm that the project remains within the approved scope. The BOI may conduct inspections to confirm that investment commitments and operational activities match what was approved. Minor issues may result in warnings or deadline extensions, while serious non-compliance can lead to benefit suspension or, in rare cases, revocation of the promotion certificate.

Lex Nova Partners: Your BOI Application Partner

BOI applications require more than simply filing in the application form, they require proper planning and preparation to make sure that the project meets the BOIs requirements and specifications.

A successful application often depends on understanding how policies are applied in practice, not only how they are written. Lex Nova’s team offers extensive experience and familiarity with BOI procedures, and actively monitors BOI incentives news so clients can benefit from new opportunities as soon as they arise.

Real-Time BOI Policy Monitoring

Our team keeps up to date with all the latest news and developments through continuous tracking of BOI policy updates and latest BOI regulations directly from Thai-language sources. 

Our team reviews official announcements as soon as they are released, coordinates with BOI officials and industry contacts, and translates complex regulatory changes into practical English guidance. 

Bilingual English-French Expertise

Lex Nova offers bilingual legal support in English,Thai and French, allowing clients to discuss complex legal and commercial matters in a language more familiar to them. This means clients receive documentation support reducing misunderstandings common when communication relies solely on translation.

Full-Service Integration

As a full service law firm in Bangkok, we can assist with your BOI promotion, company formation,visa and work permit requirements, tax structuring, and ongoing compliance under one strategy. 

This approach avoids the delays and inconsistencies that arise when using multiple advisors. Learn more about our services here: https://lexnovapartners.com/expertise/

Complementary Legal Services for BOI Investors in Thailand

Applying for and receiving the BOI promotion is only the first step foreign entrepreneurs and investors must follow. After approval, investors still complete several steps before their BOI business can be fully operational. 

Lex Nova’s integrated approach includes assistance with BOI strategy with corporate and tax, immigration. We manage the full legal framework of a Thailand investment, not only the BOI application.

Related Services

1. Thai Company Formation and Corporate Structuring

When applying for BOI promotion with the Thailand Board of Investment, the acceptance offer letter issued to successful applicants sets out specific conditions that must be completed before the full BOI promotion certificate can be granted.

The main requirement is the capital investment, with the approved amount specified in the acceptance letter. Although this may appear straightforward, it involves several technical conditions and documentation requirements that must be satisfied. For example, if the project involves foreign shareholders, capital investment sum must come from outside of Thailand. Importantly, the transaction must be properly labelled, for example, Investment for BOI Promotion. Once the transaction has been made a Foreign Exchange certificate will be required from the bank.

If the BOI application is submitted through an existing Thai company, a capital increase may be necessary, which involves completing a series of statutory corporate procedures.

Additional corporate structuring may also be required, particularly where shares are transferred from an individual shareholder to a corporate shareholder. This often involves revising the shareholding structure, updating the shareholder register, and reviewing director control and company objectives so they align with BOI conditions and Thai regulatory requirements.

In some cases, a Foreign Business Certificate application may be required if the company’s activities fall within restricted business categories under Thai law and are not fully exempted by the BOI promotion.

Our team advises on foreign ownership planning, director responsibilities, and corporate governance from day one. Explore our Corporate law and M&A services in Thailand for full structuring support.

2. Immigration Services Work Permits and Visas

While every company in Thailand needs to obtain the correct Visa and Work Permit for their foreign employees, companies promoted by the BOI are not subject to the same requirements as other company structures. For example, BOI promoted companies are not restricted by the same mandatory capital and minimum Thai staff requirements.

In order for the company to be able to hire foreign staff, they must register their company into the Single Window for Visas & Work Permits system (formerly known as the E-Expert system). Registration on the Single Window system will allow the company to make future requests for foreign workers.

After a post has been submitted, opened, and accepted through the Single Window for Visas & Work Permits system, the applicant may apply for their visa and a work permit.

BOI companies benefit from streamlined immigration privileges. We coordinate work permits, long-term extensions and dependent visas through our Thailand immigration and visa services.

3. Accounting Requirements

Companies that receive promotion from the Thailand Board of Investment are subject to more than standard Thai tax and accounting rules. BOI-promoted businesses are subject to ongoing reporting and monitoring duties designed to confirm that the project proceeds in line with the approved investment plan, timeline, and business scope. Maintaining BOI status depends on meeting these post-approval compliance obligations.

Promoted companies must provide periodic progress updates to the BOI. These monitoring reports track investment implementation, operational readiness, and adherence to the approved project details.

The current reporting timelines include:

• 6 months: Confirmation that the project has commenced and implementation is progressing
  
• 1 year and 2 years: Detailed updates on project development, investment deployment, and operational status
  
• After 3 years: The project may be subject to a BOI financial review, including examination of the company’s financial statements by an auditor recognized by the BOI

Failure to meet BOI conditions or reporting deadlines can trigger formal action. The BOI may issue a warning notice requiring corrective steps. If deficiencies are not resolved and no justifiable reason is provided, the matter can be escalated for consideration of promotion revocation.

If BOI promotion is withdrawn, previously granted tax incentives may be clawed back. The company could be required to repay exempted taxes as though the promotion had never been granted, which can create significant financial exposure.

Consistent reporting, accurate accounting records, and proactive compliance management are therefore essential to protecting BOI benefits and maintaining good standing.

4. Industrial Real Estate and Land Acquisition

While foreign ownership of land is generally restricted in Thailand, the Board of Investment offers incentives designed to attract foreign investment and support economic growth. Among these benefits, BOI-promoted companies may be permitted to own land for approved business activities.

BOI-promoted companies may own up to 1 rai of land for office and residential use. Some promoted activities qualify for larger land holdings, subject to specific conditions and approval. The permitted land area depends on the promotion category and the nature of the business.

The Board of Investment grants extended land ownership rights to selected sectors such as manufacturing, tourism, technology, and certain service industries. The land must be used strictly for the activities approved under the promotion. For example, a manufacturing company may use the land for production facilities, warehouses, and related operational infrastructure.

Purchasing land under the BOI requires following a different process to normal land transfers. 

To obtain land ownership approval as a BOI promoted company, the following process must be completed.

1. Submit a formal request

The company must prepare a written request explaining why land ownership is necessary. This should include:

• Location of the proposed land
• Size of the land
• Intended use, such as office, factory, or director residence
• Explanation of how the land supports the promoted activity

Supporting documents are required, typically including the company registration certificate, BOI promotion certificate, and investment plan.

2. BOI review and decision

The BOI reviews the request and supporting documents to confirm that the proposed land use aligns with the promotion conditions. If approved, the BOI issues an official authorization letter permitting land ownership.

3. Land registration

After receiving BOI approval, the company proceeds with registration at the local Land Office.

In some areas, Land Office officials may have limited experience with BOI-related land ownership. This can lead to additional questions or delays. Where this occurs, legal assistance is often helpful to clarify the regulations and support a smooth registration process, particularly in locations with limited BOI activity.

See our work inThailand real estate and property law. Lex Nova Partners delivers end-to-end legal support for BOI-promoted companies through coordinated Thailand legal services. View our full service overview or contact us to discuss your complete Thailand investment legal needs.

Frequently Asked Questions About BOI Incentives (2026)

What are the current BOI incentives in Thailand? 

The BOI offers a variety of incentives to attract foreign investors. These incentives are designed to improve the competitiveness of businesses in Thailand and are categorised into tax benefits and general business benefits to help make owning and running a business in Thailand easier and smoother for foreign investors.

General BOI Benefits 2026

1. Foreign Ownership: The BOI allows foreign investors to hold up to 100% of the registered capital in most promoted activities.
2. Land Ownership: BOI companies can own 1 Rai, certain BOI promotions for specific business activities are allowed to own larger plots of land. 
3. Work Permits: BOI companies are able to hire foreign staff with significantly reduced requirements when compared to non-BOI promoted businesses. Unlike other structures, BOI-promoted companies face no quotas when hiring foreign skilled employees. For example, Thai Limited Companies typically need a 4:1 ratio of Thai to foreign employees, but this requirement doesn’t apply to BOI-promoted businesses.
4. Support for R&D: Projects may receive import duty exemptions on goods imported for research and development purposes.

Tax Incentives

• Corporate Income Tax (CIT) Exemptions: The BOI grants corporate income tax exemptions for up to 13 years, depending on the nature of the business and its location. For businesses located in industrial estates or promoted industrial zones, an additional year of corporate income tax exemption is granted. Companies situated in “Investment Promotion Zones” receive three extra years of tax exemption.

Please note, not all BOI promotions are awarded CIT exemptions and the length of the corporate income tax exemption awarded to a BOI promotion depends on the activity of the business and the promotion awarded by the BOI. 

• Import Duty Exemptions: Exemption from import duties on machinery and raw materials necessary for manufacturing export products for one year, which can be extended.
• Additional Tax Benefits: 50% reduction in CIT for up to ten years after the expiration of any tax holiday.

What is the new promotion scheme of BOI? 

Thailand’s new BOI promotion scheme is designed to align investment incentives with the country’s 2026 to 2030 development priorities. The BOI has placed a clear focus on high-technology industries, digital transformation, and sustainable economic growth as part of the new S-Curve Industries. 

The BOI incentives update for 2026 hopes to encourage and promote innovation, environmental responsibility, and value-added sectors that strengthen Thailand’s long-term competitiveness. 

The Board of Investment is prioritising projects that contribute to advanced manufacturing, clean energy, smart technologies, and knowledge-based services, while gradually reducing support for low-value or environmentally intensive activities.

What are the BOI promoted industries in Thailand? 

BOI promoted industries covers a far wider range of sectors than many investors realise. The Board of Investment framework includes numerous BOI promoted industries, extending well beyond heavy industry or advanced manufacturing to cover agriculture, machinery, services, software, and digital businesses.

Where a proposed activity does not clearly fall within the standard categories of eligible industries BOI recognises, companies may still qualify under a TISO promotion. TISO is often viewed as a flexible route because it supports a wide mix of service and advisory activities.

Digital promotions are another area with wide scope. These cover software development, digital platforms, and digital content such as games, animation, AR, and VR technologies. 

A common misunderstanding is that BOI support is limited to highly technical or complex projects. In practice, many business models can qualify when structured correctly and aligned with the promotion criteria. Reviewing eligibility early often reveals opportunities that are not immediately obvious.

How to get a BOI promotion in Thailand? 

The BOI application process follows a series of structured steps that covers the following.

1. Pre-application assessment

Before applying, it is recommended for companies to undertake a feasibility and eligibility review. This helps confirm the correct promotion category, investment structure, and key BOI requirements. Early verification reduces the risk of delays or having to restart under a different category later.

2. Application preparation and submission

The formal submission includes properly preparing detailed application forms and supporting documents, such as the company structure, funding source, project description, hiring plans, machinery or software lists, and evidence of commercial viability.

A three-year business plan is a highly important document that must also be included. The 3 year plan is to be used to outline investment levels, operations, and financial projections. Consistency across all figures and descriptions is important, as discrepancies often lead to clarification requests and subsequent delays.

3. BOI review and interview

Once the application is accepted, the applicant attends an online project presentation (conducted via Zoom) with BOI officers. This interview is important as it is a chance for the BOI officers to learn about and clearly understand the application and project. 

During this interview the applicant must prepare a presentation that focuses on the business model, technical process, market position, and economic contribution to Thailand. Officers may ask questions or suggest adjustments before the case proceeds to the BOI Committee for consideration.

4. Approval timeline

Processing time depends largely on project size. Smaller projects may be reviewed in around 40 working days, while larger investments can take 60 to 90 working days, depending on capital levels and complexity.

5. BOI acceptance issuance

If approved, the investor receives an approval letter with promotion conditions. The applicant must accept the terms within 30 days, then register or adjust the company structure and complete the required investment before the BOI Promotion Certificate is issued.

6. Corporate structuring and applying for the BOI promotion certificate

After accepting the promotion conditions from the Board of Investment, the project has six months to register or restructure the company and complete the minimum investment stated in the approval letter before applying for the BOI Promotion Certificate.

Company setup or restructuring

If a company has not yet been formed, a Thai limited company must be registered. This requires at least two individual shareholders at incorporation, one or more individual directors, registered capital in line with BOI conditions, and a Thai business address. 

Where an existing company is used, its shareholding and registered capital are adjusted to match the BOI approval terms.

Corporate bank account

The company must open a Thai corporate bank account to receive the investment funds. Banks will require company registration documents, a board resolution, and the physical presence of an authorised director. This account is necessary to produce banking evidence that the capital has been injected correctly.

Capital transfer

The minimum investment must be transferred in accordance with BOI conditions. For foreign-owned projects, the foreign ownership portion generally needs to be remitted from overseas in foreign currency. Banks issue supporting documents, such as credit advice notes, confirming the source and purpose of funds. Incorrectly described transfers can lead to rejection and delays.

Application for the BOI certificate

Once the company is registered and the capital injection is complete, the investor applies for the BOI Promotion Certificate. Typical documents include the application form, company incorporation papers, shareholder list, company affidavit, and proof of the overseas capital transfer.

What is the minimum investment for BOI? 

As part of the requirements for obtaining a BOI promotion, the applicant must make a capital injection that meets the minimum investment BOI rules. This funding must reach the applicable BOI investment threshold set for the approved project category before the promotion certificate can be issued.

The minimum investment generally starts at THB 1 million, approximately USD 30,000, but the required amount can be higher depending on the BOI’s assessment of the project and business plan. Some promotion categories also have fixed minimum investment levels set in advance.

What are the BOI requirements in Thailand? 

Applying for and maintaining a BOI promotion involves meeting strict BOI requirements at every stage. This includes confirming that the project aligns with the relevant BOI eligibility criteria, preparing and submitting a complete and accurate application, and managing post-approval compliance obligations.

BOI eligibility criteria

One of the key elements of a successful BOI application is having a project or business activity that clearly falls within the scope of activities supported by the Board of Investment. While the Board of Investment supports a broad range of industries and sectors, BOI promotion is not available to every type of business.

Therefore, the requirement for meeting the BOI eligibility criteria means the project must fall within a promoted activity category and demonstrate clear economic value, feasibility, and alignment with Thailand’s investment policy objectives.

Post acceptance BOI requirements

After the application is approved, the applicant receives an official offer letter from the BOI outlining the conditions and requirements that must be fulfilled. Examples include, the minimum investment amount required

Other post-approval obligations typically include completing company registration or restructuring so that the shareholding structure, registered capital, and business objectives match the approved project. The company must then implement the project strictly in line with the approved scope. Any activities or work that is undertaken and falls outside of the scope of the promotion requires separate accounts for BOI-promoted and non-promoted activities, especially where tax incentives apply.

Depending on the promotion category, there may also be commitments relating to Thai employment levels, use of technology, or knowledge transfer. In addition, machinery, equipment, and systems listed in the application should be installed and operated as described in the approved project plan.

BOI requirements for operating

Promoted companies are required to submit progress and operational reports to demonstrate compliance with promotion conditions.

Mandatory reports must be submitted according to the following timelines:

• 6 months: Confirmation that the project has commenced and implementation is progressing
• 1 year and 2 years: Detailed updates on project development, investment deployment, and operational status
• After 3 years: The project may be subject to a BOI financial review, including examination of the company’s financial statements by an auditor recognized by the BOI

How long does BOI approval take? 

In most cases, BOI approval takes around 6 to 9 months, however, the overall timeline depends heavily on how well the application is prepared and the complexity of the project.

Before submission, obtaining a feasibility report (around 3 business days) is recommended to confirm eligibility and the correct promotion category. Once the most suitable promotion has been identified, the applicant must begin to prepare the application form and the supporting documents.

The application preparation stage generally takes around one month and includes drafting the three-year business plan, preparing the employee chart, and compiling all supporting documentation. Careful preparation at this stage is important as the project must fall within the relevant BOI promotion category and meet the eligibility criteria, otherwise the application will not proceed.

Once the company begins operations, the BOI understands that companies evolve and that actual performance may not match the original projections exactly. Provided the company satisfies the conditions set out in its BOI certificate, the BOI will not normally revisit the initial proposal in detail.

However, significant departures from the approved scope of activities can create complications. The BOI retains full records of each application, and significant differences between the approved project and the company’s actual operations may raise problems during audits or when dealing with other authorities. Any changes should therefore remain within the scope of what was originally approved.

Therefore, all financial figures, projections, and operational details included in the application should be viable and aligned with the company’s actual objectives and capacity. 

After submission, the BOI officer will review the application and usually request additional information. These follow ups can range from 2 rounds to more than 10 rounds for larger or more complex projects.

Once the application is accepted, the applicant will be invited to attend an interview with the BOI officer.

As part of the interview process, the applicant must prepare a presentation deck outlining the project. This presentation is a key stage of the application, as it allows the BOI officer to understand the company’s background, the proposed activities in Thailand, production or service processes, existing and target clients, business development plans, and the overall benefits the project will bring to Thailand.

This presentation is important because the interviewing officer will report the project to the BOI Committee. If the officer has a clear and complete understanding, the project is more likely to quickly move through the approval stage, often with only limited follow-up questions before approval at the next committee session.

However, if the presentation lacks detail, leaving key points unclear, or doesn’t provide the officer with a clear understanding of the project, they may not be able to address the Committee’s questions properly. This can lead to multiple rounds of follow-up queries and delays. 

After the presentation, the officer will present the project to the BOI Committee for approval. Well-prepared applications are often approved within one to two committee sessions.

After approval, the applicant has 30 days to accept the BOI terms, and then 6 months to register the company (if not already registered) and make the required minimum investment.

What is the Board of Investment BOI Thailand? 

The Thailand Board of Investment is a government agency established in 1966 under the Office of the Prime Minister. Its main role is to promote foreign investment and strengthen Thailand’s competitiveness by supporting strategic industries, innovation, and higher-value sectors.

The BOI’s main functions include:

• Investment Promotion: Attracting both foreign and local investments by offering tax incentives and other benefits. This includes 100% foreign ownership, exemptions from corporate income tax, reductions on import duties, and special permissions for foreign skilled workers including reduced requirements for obtaining a work permit (no 4:1 employment ratio or 2 million THB registered capital requirements).
• Support Services: Assisting investors in navigating the regulatory landscape, connecting them with local suppliers, and facilitating the establishment of businesses in Thailand.
• Sector Development: Focusing on industries that drive technological advancement and economic diversification, such as agriculture, manufacturing, electronics, digital and services.

What is a BOI certificate?

The BOI certificate, formally called the Certificate of Promotion, is an official legal document issued by the Thailand Board of Investment. The Certificate of Promotion sets out the approved project, the incentives granted, and the conditions the company must follow. 

Here is what the document typically contains:

Project identification

The BOI certificate identifies the approved project and the promoted company. This includes the certificate number used for dealings with authorities, the registered company name and tax ID, the specific promoted activity category, and the approved project location.

Benefits and incentives

The BOI certificate also lists the benefits and incentives awarded to the project under the Investment Promotion Act. These may include corporate income tax exemptions for a defined period, import duty exemptions for machinery and raw materials used in export production, and general business benefits such as permission for majority or full foreign ownership and land ownership.

Conditions and obligations

The certificate of promotion also sets out the conditions the company must meet to maintain its promoted status. These often cover the minimum investment level, capital structure limits, deadlines for importing machinery and starting operations, operational requirements such as value-added or staffing commitments, and ongoing reporting to the BOI through its prescribed system.

Together, these elements make the certificate the key document governing the scope of the project, the incentives available, and the compliance obligations that apply throughout the promotion period.

Please note that this article is for information purposes only and does not constitute legal advice

Introduction:

For many entrepreneurs, the question of foreign business ownership in Thailand is an important one. While many business activities in Thailand require a Thai shareholder to hold a majority ownership of more than 50 percent under the Foreign Business Act Thailand, there are several legal structures and investment pathways that permit 100 percent foreign ownership.

Thailand remains one of Southeast Asia’s most attractive destinations for foreign investors. However, foreign business ownership is regulated by the Foreign Business Act Thailand (FBA). The FBA sets out which activities are restricted, which require special permission, and which may be undertaken with majority or full foreign ownership. Without proper legal planning, investors may face business restrictions or delays to market entry.

In this complete 2026 guide, we explain how foreign ownership rules operate in practice, when 100 percent foreign ownership is possible and how to structure your business correctly.

Key Points

• The Foreign Business Act (FBA) restricts around 50 categories of business activity, dividing them into three lists ranging from strictly prohibited sectors to those where a foreign business licence can be applied for.
• 100% foreign ownership is possible through two main routes: a BOI promotion (which also unlocks tax incentives and simplified work permits) or a Foreign Business Licence, though the latter is harder to obtain and approval is not guaranteed.
• BOI promotion is generally the preferred route for eligible businesses, offering corporate income tax exemptions of up to 13 years, import duty exemptions, land ownership rights, and a clearer approval framework than the Foreign Business Licence process.
• Nominee shareholder arrangements are illegal and increasingly prosecuted, with Thai authorities actively cross-checking company registrations against Revenue Department records to identify structures where Thai shareholders hold shares on behalf of foreign investors without genuine financial interest.
• Enforcement of the FBA has significantly intensified in 2024–2025, with authorities scrutinising shareholding structures, voting rights arrangements, and preference share allocations that may disguise effective foreign control, exposing both foreign investors and Thai nominees to fines, imprisonment, and company dissolution.

What Is the Foreign Business Act and Why Does It Restrict Foreign Ownership in Thailand?

The Foreign Business Act, formally known as the Foreign Business Act B.E. 2542 (1999), is the primary legislation governing foreign business ownership in Thailand. The Foreign Business Act Thailand was introduced to protect certain sectors for Thai nationals while continuing to welcome foreign investment into areas that support economic development.

The Foreign Business Act is used to determine whether a business activity is restricted, whether a licence may be granted, and whether a company structure complies with Thai law.

Who Is Considered a “Foreigner” Under the FBA?

Section 4 of the foreign business act Thailand has a wide definition of what is considered a  “foreigner” The definition extends beyond nationality and covers both individuals and juristic persons. A foreigner includes:

1. A natural person who is not of Thai nationality.
   
2. A juristic person not registered in Thailand.
   
3. A juristic person registered in Thailand where at least 50 percent of the capital shares are held by non-Thai individuals or foreign entities, or where foreign investment represents at least half of the total capital.
   
4. A Thai-registered juristic person in which at least half of the shares are held by persons falling within the above categories, directly or indirectly.
   
5. A limited partnership or registered ordinary partnership where the managing partner is a non-Thai national.

The Three Restricted Business Lists

The foreign business act Thailand restricts approximately 50 categories of business, divided into three schedules:

List 1 – Strictly Prohibited Activities

List 1 covers businesses considered essential for national interests, such as newspaper publishing, animal farming, land trading, and certain agricultural activities. Foreigners are prohibited from engaging in these activities for “special reasons.” No licence or approval mechanism is available.

List 2 – Activities Related to National Security and Infrastructure

List 2 includes businesses connected to national security, domestic transportation by land, water, or air, and certain activities involving arts, culture, and natural resources. Foreign participation may be permitted, but only with approval from the Minister of Commerce and the Cabinet. In practice, such approvals are rare and subject to strict scrutiny.

List 3 – Service Businesses Where Thai Nationals Are Deemed Not Ready to Compete

List 3 is the most commercially relevant category for foreign investors. It includes “other categories of service businesses” not otherwise exempted by ministerial regulations. Foreign companies may apply for a Foreign Business Licence, subject to approval by the Director-General of the DBD and the Foreign Business Committee. Many professional services, consulting, and trading structures fall within this list.

Business Activities that Allow 100% Foreign Ownership Without Special Permissions

The following business activities are not restricted under the Foreign Business Act in Thailand and can be undertaken by a 100% foreign owned business.

Export Companies

Thailand actively encourages exports, and companies who exclusively export products outside Thailand can be foreign owned. In order to maintain this status, export companies must ensure their operations and revenue are only international, and they can’t sell directly within the Thai domestic market.

Manufacturing Companies

Manufacturing companies in Thailand can be 100% foreign-owned as manufacturing is not on Thailand’s “restricted” list for foreign ownership under the Foreign Business Act (FBA). This allows foreign investors to own and operate manufacturing businesses without needing a Thai partner.

Another advantage for manufacturing companies is their eligibility for a BOI promotion. BOI promotions offer many advantages including different types of tax exemptions including Corporate Income Tax exemptions and Tax exemptions on the import of machinery. BOI promotions can also allow full foreign ownership and the ability to own land which can be used for their factory etc.

However, if the manufacturing business involves activities related to restricted sectors (e.g., agriculture, mining, certain types of food processing), it may still be subject to FBA limitations.

Common Misconceptions About Foreign Ownership

There is a common misunderstanding that incorporating a Thai company automatically allows majority foreign ownership. However, if the business activity falls within a restricted list, foreign majority ownership may require the foreign investor to apply for a Foreign Business licence or an alternative option such as a Board of Investment (BOI) promotion. In practice, most of the business activities that foreign investors wish to undertake are likely to be restricted by the foreign business act.

If the business cannot obtain either a Foreign Business Licence or BOI promotion and wishes to engage in a restricted activity, the foreign investor will have to work with a Thai partner.

Another misconception is that nominee shareholding arrangements can be used as an easy way to bypass these restrictions. However, recently Thai authorities have increased scrutiny of structures designed to conceal effective foreign control. The DBD has strengthened investigations into shareholder legitimacy, capital flows, and voting rights arrangements, particularly during 2024 and 2025.

Enforcement Trends and Penalties

Thai authorities are now actively examining whether Thai shareholders are genuine investors or merely holding shares on behalf of foreigners to avoid the restrictions of the Foreign Business Act.

Non-compliance with the Foreign Business Act in Thailand can result in significant consequences, including fines, imprisonment, suspension of operations, and in severe cases, business closure. Directors may also face personal liability if they knowingly participate in unlawful structures.

For advice on 100 percent foreign ownership structures and the most appropriate approach for your proposed activities in Thailand, we invite you to contact our team of experts directly. We can assess your business model, review the applicable restrictions under the Foreign Business Act, and advise on the most suitable legal pathway for your specific circumstances.

How to Get a Foreign Business License in Thailand

A Foreign Business License (FBL) is a formal approval issued to foreign investors or foreign-owned companies that wish to carry out business activities restricted under the Foreign Business Act. 

In Thailand, certain sectors are reserved for Thai nationals or Thai majority-owned companies. Where an activity is considered as restricted under the Foreign Business Act, a foreign company cannot undertake this activity. An FBL is required to obtain lawful permission to operate in those sectors.

The Foreign Business Licence is formal approval confirming that a foreign company is authorised to engage in a restricted business activity. Without it, undertaking a restricted activity may expose the company and its directors to administrative penalties and potential criminal liability.

While a Foreign Business License may appear to be an attractive option, it is not automatically available to all companies. The application process is strict, requiring detailed supporting documentation, clear justification of the proposed business activity, and evidence of the economic benefit or transference of technology to Thailand.

Approval is not guaranteed and in practice, very few Foreign Business Licences are awarded. The submission of an application does not guarantee that the licence will be granted, and each case is assessed on its individual merits.

How BOI Promotion Gives You 100% Foreign Ownership (Even for Restricted Businesses)

The Thailand Board of Investment (BOI) is a government agency established in 1966 under the Office of the Prime Minister. The aim of the BOI is to promote both foreign investment by granting incentives and regulatory privileges to projects that support Thailand’s long-term economic development.

BOI incentives are divided into 2 distinct groups, general business benefits and tax incentives.

General Business Benefits

• 100% Foreign Ownership
  BOI-promoted activities may permit up to 100% foreign ownership, including in sectors that would otherwise be restricted under the Foreign Business Act.
  
• Land Ownership
  BOI companies can own 1 Rai, certain BOI promotions for specific business activities are allowed to own larger plots of land.
  
• Reduced Work Permit Requirements
  BOI companies benefit from streamlined visa and work permit procedures and are exempt from the standard 4:1 Thai-to-foreign employee ratio typically applicable to non-promoted companies.
  
• R&D and Import Privileges
  Import duty exemptions may apply to machinery, raw materials, and goods used for research and development.

Tax Incentives

• Corporate Income Tax Exemption
  CIT exemptions may be granted for up to 13 years, depending on the business activity and location. Some zones provide additional years of exemption. Not all promoted activities qualify, and the duration depends on the specific category awarded.
  
• Import Duty Exemptions
  Exemptions may apply to machinery and raw materials used in export-oriented manufacturing.
  
• Post-Holiday Reduction
  A 50% reduction in CIT may be granted for up to 10 years following the expiry of the tax exemption period.
  

Can Foreigners Own 100% of a Business in Thailand? The BOI and the Foreign Business Certificate

A significant advantage of BOI promotion is the ability for a foreign investor to be able to apply for a Foreign Business Certificate (FBC) under Section 12 of the Foreign Business Act. The FBC allows a foreign owned company to undertake restricted activities covered by its BOI promotion without applying for a separate Foreign Business Licence.

Once the BOI Promotion Certificate is issued, the company may apply to the Ministry of Commerce for the FBC. While the Ministry retains discretion, the certificate is in practice always granted for the approved promoted activities.

By obtaining a BOI promotion, the company promoted  this additional regulatory layer, making it a more structured and predictable route for eligible foreign investors entering restricted sectors.

BOI vs Foreign Business Licence (FBL)

The decision between a BOI promotion and a Foreign Business Licence should be based on the nature of the business activity, the level of investment, and the company’s long-term objectives in Thailand.

BOI Promotion

A BOI promotion is generally most appropriate where the proposed activity falls within eligible promoted categories and the investor seeks to secure up to 100% foreign ownership. However, companies must carefully consider the prescribed minimum investment thresholds and operational conditions imposed by the BOI, as these requirements may not be achievable for all types of business. 

For eligible projects, a BOI promotion can offer significant advantages, particularly where corporate income tax incentives, import duty exemptions, and reduced requirements for work permit processes are required

Foreign Business Licence

A Foreign Business Licence may be suitable where the activity does not qualify under BOI criteria or where the company is acquiring or operating an existing business structure. It is typically considered when investment levels fall below BOI thresholds or when the main requirement is to obtain legal permission to conduct a restricted activity under the Foreign Business Act, rather than to obtain tax incentives.

Historically, many lawyers and advisors in Thailand have described the Foreign Business Licence (FBL) process as relatively unpredictable, often suggesting that approval could be uncertain and sometimes informally characterised as having roughly a “50-50” chance of success depending on the circumstances of the application. For this reason, practitioners have traditionally encouraged investors to pursue a Board of Investment (BOI) promotion whenever the activity qualifies, as BOI approval generally provides a more structured approval framework together with additional advantages such as tax incentives, land ownership rights, and simplified visa and work permit procedures.

Recently, however, enforcement of the Foreign Business Act has increased, particularly with respect to the improper use of Thai nominee shareholders designed to circumvent foreign ownership restrictions. At the same time, the Ministry of Commerce appears to have adopted a more pragmatic approach in reviewing legitimate FBL applications. Where investors present a genuine business project that satisfies the criteria under the Foreign Business Act, such as contributing technology, expertise, or economic value to Thailand, applications allowing majority foreign ownership (including up to 100% foreign ownership in certain cases) appear to be assessed more pragmatically. In parallel, authorities have become stricter toward structures designed primarily to bypass the law through the use of nominee shareholders.

Why Nominee Shareholders Are Illegal in Thailand

Under the Foreign Business Act B.E. 2542 (1999) (FBA), the use of nominee shareholders to avoid foreign ownership restrictions is strictly prohibited.

A nominee shareholder arrangement arises where a Thai individual or juristic person is registered as a shareholder but does not have a genuine financial interest in the company. The shares are held on behalf of a foreign investor who retains the real economic benefit and effective control.

Nominee structures typically involve one or more of the following characteristics:

• The registered Thai shareholder has not contributed capital or does not have the financial capacity to subscribe for the shares held in their name.
  
• The Thai shareholder has no beneficial interest in the company and does not exercise genuine decision-making authority.
  
• The shareholding arrangement is designed to present the company as Thai-majority owned for regulatory purposes.
  
• Side agreements, loan arrangements, or voting undertakings transfer control or economic benefit to the foreign investor.

Where the above exists in a company structure, Thai authorities are likely to treat the structure as a foreign-owned business operating in breach of the FBA.

Legal Exposure and Enforcement Risk

The FBA imposes significant criminal penalties on both the foreign investor and the Thai nominee. Penalties may include substantial fines, imprisonment, and court-ordered dissolution of the company.

Enforcement activity has intensified in recent years. Thai authorities have increased scrutiny of shareholding structures, particularly in sectors historically associated with nominee risk, including property holding and certain commercial activities. Investigations have included cross-checking corporate registration data with Revenue Department records to identify inconsistencies between declared ownership and economic reality.

Preference Shares and Control Disparities

Foreign investors should also be careful when using preference share structures that disproportionately allocate voting rights, dividend entitlements, or control mechanisms in favour of foreign shareholders.

Under Thai company law, preference share rights are enforceable only if they are expressly provided for in the Articles of Association of the company, which are filed with the Ministry of Commerce and therefore form part of the company’s official public records. In practice, this means that the specific rights attached to each class of shares,such as voting rights, dividend priority, or liquidation preference, must be clearly stated in the Articles.

Because these Articles are filed with the Department of Business Development (DBD), the authorities are able to review the share structure during regulatory inspections or investigations. Where the Articles reveal a structure in which Thai shareholders formally hold the majority of the issued shares but foreign shareholders enjoy disproportionate control rights or economic benefits, the authorities may question whether the arrangement reflects genuine commercial allocation or whether it could constitute a circumvention of the Foreign Business Act through the use of Thai nominee shareholders.

For this reason, in practice many control arrangements are structured through shareholders’ agreements, investment agreements, or joint venture agreements, which remain private contracts between the parties and are not filed with the Ministry of Commerce. In international joint venture structures, it is also common for investors to establish a holding company in a neutral jurisdiction such as Hong Kong, through which the parties organise governance and economic rights. The shareholders’ agreement at the holding company level may govern key matters such as management of the Thai operating company, board appointment rights, reserved matters, and investor protections, while providing for dispute resolution through international arbitration rather than Thai courts.

Why Foreign Investors Choose Lex Nova Partners for Foreign Business Ownership in Thailand

Lex Nova Partners is a results-oriented law firm offering a wide range of legal services to both new entrants and well-established businesses in Thailand.

We help our clients navigate through the evolving Thai legal environment that is characterized by frequent changes and ambiguity in the actual application of legal norms, which may pose challenges to foreign investors, in particular. We at Lex Nova Partners are uniquely qualified to address these operational challenges in the Thai context and our law firm has the necessary legal expertise, resources and flexibility to overcome various complexities.

We see our role as a local legal counsel in being first-to-call when our clients require high-quality and effective legal advice to facilitate their activities in Thailand. Assisting our client through complex business and investment challenges within Thailand legal framework. This might include assistance for negotiating and drafting complex joint-venture agreements with Thai partners, obtaining BOI promotion and relevant licenses to undertake necessary business activities or assisting in obtaining work permits and visas for the executives and employees.

Based in Bangkok, Thailand, Lex Nova brings to a wide ranging clientele made up of multi-national and listed companies, smalls and medium-sized businesses, along with start-ups and individual investors and entrepreneurs high added value services based on three principles: excellence, pragmatism and responsiveness.

Please note that this article is for information purposes only and does not constitute legal advice

Introduction:

Thailand’s SME sector is becoming an increasingly important part of the economy. As government support continues to evolve, new policies are being introduced to strengthen small and medium-sized enterprises and improve Thailand’s competitiveness as a regional business hub.

In 2025, several important regulatory and policy developments were announced that directly affect how SMEs operate, qualify for incentives, and access funding from 2026 onward. For foreign investors and business owners, understanding these changes is essential when planning market entry, structuring operations, or expanding an existing presence in Thailand.

This guide provides a clear overview of the latest Thailand SME policy updates, with a particular focus on how they apply in practice to both local and foreign SME Thailand structures. It examines the updated Thailand SME definition, key SME criteria Thailand businesses must meet, and the practical implications for tax and compliance. The article also explains available SME tax benefits Thailand, current Thailand SME financing options, and the government-backed Thailand SME support programs designed to improve access to capital, promote fair competition, and support long-term growth.

Key Points

• The Thailand SME definition (2026) is based on both employee numbers and annual turnover, with separate thresholds for manufacturing and service, wholesale, and retail businesses
• SME status matters as it provides access to SME tax benefits, government incentives, and official SME support programs
• BOI and TISO promotions may allow eligible SMEs to operate with 100% foreign ownership, reduced regulatory requirements, and tax or import duty incentives
• Thailand SME financing options are expanding through low-interest loans, credit guarantees, faster tax refunds, and increased government procurement under the Quick Big Win policy
• New and proposed policies including digital transformation tax deductions and the Draft Start-up Promotion Act signal long-term government commitment to strengthening the SME Thailand ecosystem through Thailand SME support programs

What Qualifies as an SME in Thailand? 2026 Definitions

Under Thailand’s regulatory framework, the Thailand SME definition is based on clearly defined thresholds for employee numbers and annual turnover. To qualify under the applicable SME criteria Thailand, a business must meet both requirements, rather than relying on just one. This approach provides a more consistent basis for classifying SMEs and determining eligibility for government measures and incentives within the broader SME Thailand landscape.

These criteria are particularly relevant for businesses assessing access to SME tax benefits Thailand, participation in Thailand SME support programs, and eligibility for Thailand SME financing schemes. 

SMEs in Thailand fall into two main categories:

• Manufacturing businesses with up to 200 employees and annual turnover not exceeding THB 500 million (approximately USD 13.5 million).
• Service providers, wholesale, and retail businesses with up to 100 employees and annual turnover capped at THB 300 million (approximately USD 8.1 million).

In addition to the standard Thailand SME definition, further classifications are used by the Office of SMEs Promotion (OSMEP) to distinguish businesses by size and operating scale. 

Under OSMEP guidelines, businesses may be classified as follows:

Micro Enterprises

• Revenue: not exceeding THB 1.8 million per year (all sectors)
• Employees: no more than 5 employees (all sectors)

Small Enterprises (Manufacturing Sector)

• Revenue: more than THB 1.8 million and up to THB 100 million per year
• Employees: more than 5 and up to 50 employees

Small Enterprises (Trade and Service Sectors)

• Revenue: more than THB 1.8 million and up to THB 50 million per year
• Employees: more than 5 and up to 30 employees

This criteria is the basis of how SME Thailand status is assessed and is the main factor in determining which businesses can access government support and incentive programs.

Why SME Status Matters: Benefits and Incentives for SMEs

Qualifying as a small or medium-sized enterprise in Thailand can have a significant effect on the long-term financial performance of a business. SME classification could lead to eligibility in a range of government-backed incentives, including reduced corporate income tax rates, access to state-supported financing, and targeted support programs designed to strengthen business growth and liquidity.

SME Tax Rates

For foreign-owned companies in particular, SME status also comes with their own set of corporate income tax rates significantly below the standard 20%.

Companies whose paid up capital does not exceed THB 5 million at the end of an accounting period, and its income from the sale of goods or the provision of services remains below THB 30 million for that period, the following corporate income tax rates may apply:

How can the Board of Investment (BOI) Support SMEs in Thailand?

The Thailand Board of Investment (BOI) plays an important role in supporting foreign and local businesses, including SMEs in Thailand, by offering targeted incentives and support for companies establishing or expanding operations in the country.

By obtaining a BOI promotion, eligible businesses, including SMEs may benefit from advantages such as 100% foreign ownership, corporate income tax exemptions or reductions, import duty incentives, and more flexible rules for hiring foreign specialists. BOI promoted companies are not subject to standard requirements such as the four Thai employees per foreigner ratio or minimum registered capital thresholds.

BOI support is focused on priority industries aligned with Thailand’s long-term economic strategy, including technology, digital services, advanced manufacturing, clean energy, healthcare, and innovation-driven sectors. 

By directing investment into these areas, the BOI aims to strengthen Thailand’s competitiveness while creating a more sustainable and knowledge-based economy.

Read more:

A Guide to 100% Foreign Business Ownership in Thailand

Which Projects Actually Qualify for a BOI Promotion? 

BOI promotions are available across a wide range of business activities, including manufacturing, agriculture, machinery, software, and digital services. For SMEs in Thailand that do not qualify for standard BOI categories, the Trade and Investment Support Office (TISO) promotion offers a more flexible alternative. TISO is commonly used by service-based and support businesses due to its wide scope and lower entry barriers.

In practice, BOI eligibility extends far beyond the high-technology sectors it is often associated with. Many promotion categories allow for adaptable business models, and proposed activities can frequently be structured to meet BOI requirements. For foreign-owned SMEs in Thailand, early assessment of BOI or TISO eligibility can open access to incentives and regulatory advantages that are otherwise unavailable under standard company structures. Talk to our experts for more information.

Read more:

BOI Company (TISO): An Alternative BOI Opportunity for Investors

BOI Incentives That Makes Doing Business in Thailand Easier

The Thailand Board of Investment (BOI) offers a range of incentives to make investing in Thailand more attractive. These benefits are designed to increase your business’s competitiveness and are split into two main types: tax benefits and general business support.

These incentives are not available to every business in Thailand and have been designed  to make it easier for foreign investors to get started and ultimately succeed in Thailand.

The Biggest Advantage: 100% Foreign Ownership

Although Thailand actively encourages foreign investment, certain business activities remain restricted under the Foreign Business Act. Foreign-owned companies operating in these sectors are generally required to obtain a Foreign Business License or partner with Thai shareholders, both of which can create structural and compliance challenges, particularly for SMEs in Thailand.

One of the key advantages of BOI promotion is that BOI promoted companies may operate restricted activities by obtaining a Foreign Business Certificate, avoiding the more time-consuming and uncertain Foreign Business License process.

For foreign-owned SMEs in Thailand, this exemption can be important. BOI promotion reduces regulatory barriers, supports full foreign ownership in qualifying activities, and grants access to incentives that are not available under standard company structures, making market entry and long-term operations significantly more practical.

BOI Business Support That Makes a Real Difference

As well as the possibility of 100% foreign ownership, the BOI offers incentives designed to enhance the competitiveness of businesses in Thailand that are not available to regular business structures.

Land Ownership

BOI companies can own 1 Rai, certain BOI promotions for specific business activities are allowed to own larger plots of land. 

Reduced Requirements for Work Permits

BOI companies are able to hire foreign staff with reduced requirements as there are no quotas when hiring foreign skilled employees. For example, Thai Limited Companies typically need a 4:1 ratio of Thai to foreign employees, but this requirement doesn’t apply to BOI-promoted businesses.

Tax Incentives for BOI-Promoted Companies

Tax benefits are offered by the BOI to support long-term growth and reduce the financial restrictions of doing business in Thailand.

Corporate Income Tax (CIT) Exemptions

One of the most significant incentives available through BOI promotion is the exemption from corporate income tax. Depending on the approved business activity and location, BOI promoted companies may qualify for corporate income tax exemptions of up to 13 years. Additional exemption periods may apply where operations are located within designated industrial estates or investment promotion zones.

For SMEs in Thailand, it is important to understand that corporate income tax exemptions are not automatically granted under every BOI promotion. The availability and duration of tax relief depend on the specific activity approved by the BOI and the terms of the promotion granted. 

Careful review of eligibility and location planning is therefore essential when assessing the tax benefits of BOI support. To learn more about whether your business may be eligible for a BOI promotion, please feel free to book a consultation with one of our experts here.

Import Duty Exemptions

BOI companies can import machinery and raw materials used in production without being subject to import duties. 

This exemption from import duties on machinery and raw materials necessary for manufacturing export products is usually available for one year, which can be extended.

Additional Tax Benefits

50% reduction in CIT for up to ten years after the expiration of any tax exemption.

Government Policies to Support SMEs in Thailand

The Thai government has introduced a range of policies aimed at strengthening SMEs in Thailand. These initiatives focus on improving access to finance, reducing regulatory barriers, and encouraging innovation across key sectors. 

The Office of SMEs Promotion (OSMEP)

The Office of SMEs Promotion (OSMEP) is a government agency in Thailand responsible for creating policy, strategy, and development plans to support Small and Medium-sized Enterprises (SMEs). The OSMEP coordinates between various government ministries and the private sector to promote the growth of Thai SMEs.

Function of the OSMEP

OSMEP was established by the SMEs Promotion Act, B.E. 2543 (2000) and later amended by the Act (No. 2), B.E. 2561 (2018). OSMEP focuses on three areas:

• Policy Formulation: Drafting the National SME Promotion Master Plan (currently the 5th Master Plan).
• Coordination: Acting as the coordinator to align the budgets and projects of over 20+ different government agencies that work on SME support (e.g., Ministry of Industry, Ministry of Commerce).
• Monitoring & Data: Maintaining the national SME database and publishing the annual “White Paper on MSMEs,” which analyzes the economic situation of small businesses in Thailand.

The 5th Master Plan (2023–2027)

Thailand is currently operating under the 5th SME Promotion Master Plan. This roadmap shifts focus from general support to targeted growth. The key strategies implemented by the master plan include:

• Inclusive Growth: Ensuring local community enterprises and micro-businesses can access government procurement.
• Focus on High-Value Sectors: Supporting SMEs in the BCG (Bio-Circular-Green) economy, digital services, and deep-tech.
• Global Access: Helping SMEs meet international standards to export their products.

Key Projects & Services for SMEs

In order to help and support SMEs, the OSMEP operates the following services that can be used by eligible SMEs:

SME One ID:

This is a digital ID system. Registration allows a business to access services from various government agencies without re-submitting documents every time. It essentially functions as a “fast track” for government support.

BDS (Business Development Service) / “SME Pang Tung”:

A co-payment subsidy program where OSMEP pays for 50–80% of the cost for training, testing, lab analysis, or standard certification (e.g., ISO, FDA approval).

Thai SME-GP (Government Procurement):

A dedicated list aimed at allocating government purchasing budgets for SMEs. If you register here, you get preferential treatment (e.g., price preference) when bidding for government contracts.

SME Connext:

An online portal and application that aggregates news, knowledge, and workshop schedules for entrepreneurs.

SME owners should note that they must apply (free of charge) to join OSMEP in order to take advantage of these programs. 

Royal Decree to promote the digital transformation of small and medium-sized enterprises (SMEs)

On 24 June 2025, the Thai Cabinet approved a new income tax incentive designed to promote the digital transformation of small and medium-sized enterprises (SMEs). 

Under the proposed Royal Decree, eligible businesses can claim a 200% tax deduction on qualifying digital expenses, up to a cap of ฿300,000, incurred between 24 June 2025 and 31 December 2027.

Who is Eligible to This Tax Deduction?

The tax incentive is aimed at SMEs formally registered in Thailand. To qualify, businesses must meet all of the following financial criteria:

• Paid-up capital of not more than ฿5 million at the end of the accounting period
• Annual revenue from sales and services of not more than ฿30 million

This definition aligns with standard SME classifications under Thai tax regulations and ensures the incentive specifically targets businesses that may otherwise lack the capital to invest in digital upgrades. Both Thai-owned and foreign-owned SMEs that meet the criteria are eligible.

Qualifying expenses include the purchase, rental, or subscription of the following:

• Registered digital software (e.g. cloud-based ERP, accounting systems, CRM platforms)
• Smart devices and digital hardware, excluding general-purpose computers (e.g. barcode scanners, POS systems, IoT-enabled machinery)
• Digital services that directly enhance business processes (e.g. e-commerce platforms, AI-enabled analytics, cybersecurity services)
• Computer programs officially registered with DEPA

Key Benefits for Thai SMEs

For SMEs, the Royal Decree creates a valuable opportunity to reduce overall tax burdens. By allowing additional expenses to be treated as deductible costs, the government is providing direct support for business operations, workforce development, and broader economic activity.

The double deduction also makes digital adoption more accessible by reducing the effective cost of investing in new systems and tools. This helps smaller businesses keep pace in a fast-moving digital landscape where technology and operational needs continue to evolve.

Read more:

Thailand Approves 200% Tax Deduction for SME Digital Transformation

Quick Big Win Policy

In November 2025, the Ministry of Finance introduced a new set of measures aimed at strengthening and promoting Thailand’s SMEs. This initiative, developed under the government’s Quick Big Win policy, was approved by the Cabinet in early December.

Under the Quick Big Win policy, a support package worth 327 billion THB will be made available for Small and Medium-sized enterprises (SMEs). The purpose of these funds is to boost liquidity and credit access for SMEs in Thailand.

The 327 billion THB will be available to SMEs in the following forms

• Low interest business loans (217 billion THB)
• SME credit guarantees (50 billion THB)
• Expedited tax refunds (60 billion THB)

Financial Measures to Strengthen SME Liquidity

The Ministry of Finance plans to expand financing options for SMEs by introducing low-interest lending schemes designed to ease access to working capital and strengthen current credit guarantee mechanisms. 

A new guarantee facility, backed by the Financial Institutions Development Fund, will also be introduced with more flexible conditions to support a wider range of SME borrowers. 

The Bank of Thailand is currently preparing the operational framework so that financial institutions can effectively introduce these measures once approved.

Tax Measures to Promote Fair Competition

As part of the Quick Big Win campaign, two tax initiatives are being considered to strengthen the operating environment for SMEs.

Customs Policy

Beginning 1 January 2026, all goods ordered through online platforms will be subject to import duty from the first baht. The objective is to create fairer competition between domestic sellers and low-cost imports that previously entered the market without being subject to import duty requirements.

Revenue Department Measures

The Revenue Department will also speed up the processing of refund claims so that SMEs receive liquidity sooner. The aim of this policy is to help SMEs manage cash flow during periods of tighter operating conditions.

Expanding Government Procurement from Thai SMEs

Public sector agencies will be encouraged to source a greater share of goods and services from local SMEs. All government purchase orders will be logged in a central digital platform, allowing SMEs to present verified orders as part of their loan applications. 

This additional documentation strengthens their credit profile and provides lenders with clearer evidence of upcoming revenue, helping SMEs secure financing more easily.

Key Benefits for Thai SMEs

These proposed measures provide an excellent opportunity to strengthen Thailand’s small and medium-sized sector. By improving access to financing, creating a fairer competitive landscape, and increasing public-sector demand for locally produced goods, the Quick Big Win policy is designed to support SME resilience and promote long-term growth.

Stronger SME Sector and Improved Job Creation

Easier access to financing and improved credit support allow SMEs to scale their operations. As these businesses expand, they generate new employment opportunities and contribute to higher household income across local communities.

More Equal Market Conditions

The application of customs duties on low-value online imports helps reduce unfair pricing pressure on domestic producers. This creates a healthier competitive environment in which Thai SMEs can diversify their offerings and compete more effectively.

Greater Demand for Local Products 

Increasing government purchases from Thai SMEs provides steady sales channels and more predictable cash flow. This uplift in domestic demand helps strengthen SME resilience and supports overall economic growth.

Announced Policies Designed to Support SMEs in Thailand

The Thai government has announced a series of proposed policy measures aimed at strengthening the small and medium-sized enterprise sector, with a focus on improving access to finance, promoting fair competition, and supporting long-term business growth. 

These initiatives form part of a wider economic reform and reflect the government’s intention to promote SMEs.

The sections below outline the key announced initiatives, including the Quick Big Win policy measures and the Draft Start-up Promotion Act, and explain how they may affect Thai SMEs once formally adopted. 

Please note, these policies are still under consideration by the Thai Government so not all details have been released or announced at the time of writing. However, the proposals provide important insight into the policy direction Thailand is taking and highlight potential opportunities and compliance considerations for SMEs operating in the market.

Thailand’s Draft Start-up Promotion Act

The Thai government has announced a draft Start-up Promotion Act for public consultation, designed to support and promote innovation-driven businesses. 

Under this proposal, a coordinated institutional system would be created to guide national start-up policy, streamline fundraising options, and provide certified start-up companies with access to a range of regulatory, tax, immigration, procurement, and intellectual property incentives. 

The Start-up Promotion Act aims to improve access to capital and skilled talent to encourage and promote Thailand’s start-up competitiveness.

The Draft also proposes the creation of a Start-up Promotion Committee, composed of government representatives, private-sector leaders, and independent specialists. This Committee will be tasked with shaping national start-up policy, approving incentive measures, reviewing listings submitted by the National Innovation Agency, proposing legislative amendments, and handling appeals concerning company eligibility.

Under the framework, the National Innovation Agency would function as the central implementing authority and one-stop service hub. Its responsibilities would include coordinating between state agencies and the private sector, consolidating ecosystem data, offering advisory and technical support, monitoring programme performance, and administering financial assistance such as grants, conditional grants, loans, and co-investment mechanisms. 

With Cabinet approval, the Agency would also have the ability to create or co-establish investment vehicles and reinvest income generated through activities carried out under the Draft Act.

Who does the Start-up Promotion Act Apply to?

The Start-up Promotion Act is aimed at start-up businesses whose products or services show strong potential for rapid, scalable expansion and are built around innovation. Eligible businesses must offer at least one of the following; new technology, advanced expertise, or disruptive business models. 

A company will qualify as a “Start-up Company” once it is formally listed by the National Innovation Agency as eligible for the incentives and support introduced under the Act.

Who is Considered a Start-up?

To be recognised as a Start-up Company and be eligible for the incentives under the Draft Act, an applicant must meet the following criteria at the time of submission.

Corporate Form and Stage of Development

The business must be a Thai private limited company and generally no more than ten years old on the date of application. This requirement is intended to target early-stage firms with strong growth potential.

Business Scale

The company’s average annual revenue over the preceding three financial years must not exceed THB 300 million. The Start-up Promotion Committee will refine these thresholds and may adopt sector-specific benchmarks to reflect different growth rates across industries.

Control and Distribution History

Eligible companies must not have distributed dividends and cannot operate as a controlled subsidiary of another entity, except in specific circumstances, such as being owned by another qualifying start-up or by an innovation commercialisation entity established by a higher education institution.

Post Approval Requirements

Within two years of being listed on the National Innovation Agency’s sector-based register of Start-up Companies, the Company will need to employ a minimum number of Thai employees. 

These thresholds will be set by the Committee and each industry will have their own requirements. The thresholds will be designed to support technology transfer and capability development. 

Companies are also required to submit an annual self-certification confirming their continued compliance and eligibility. Failure to meet workforce requirements, failure to certify on time, or a change in eligibility status may lead to removal from the register. 

Serious breaches of the rules, including intentional misstatements, improper use of benefits, or significant environmental harm, may result in permanent delisting and recovery of incentives already granted.

Start-up Companies will receive benefits for a five-year period from the date of listing. Deep-technology start-ups operating in priority sectors, such as agriculture or other industries later designated by the Committee, may be eligible for an extension of up to ten years.

Corporate Flexibility for Start-up Financing

To align the Civil and Commercial Code with the requirements of startups in relation to venture financing, the Draft Act introduces a series of targeted exceptions for Start-up Companies listed by the National Innovation Agency. 

These exceptions are designed to give start-ups greater flexibility in raising capital, structuring investment deals, and offering equity-based incentives.

The following incentives will apply to start-ups that have been listed on the National Innovation Agency’s sector-based register of Start-up Companies.

Public Share and Debt Offerings

Listed Start-up Companies may offer shares to the public and issue debentures, subject to shareholder approval and compliance with rules issued by the Capital Market Supervisory Board. This provides start-ups with capital-raising routes traditionally available only to more mature companies.

Treasury Shares and Share Buy-backs

Start-up Companies may hold up to twenty percent of their own shares, whether acquired through buy-backs or created as treasury shares. These shares have no voting, quorum, or dividend rights. Buy-backs are allowed where the company’s articles of association provide for them and may be used for purposes such as liquidity management, fulfilling contractual investment arrangements, or safeguarding dissenting shareholders in defined circumstances.

Convertible Preference Shares 

The Draft Act will allow companies to convert preference shares into ordinary shares when permitted under the company’s articles of association.

Issuing New Shares to Non-shareholders

With a special shareholders’ resolution and where permitted by the articles of association, Start-up Companies may increase capital and issue shares directly to non-shareholders. 

Eligible recipients include:

 • directors and employees under an approved equity incentive plan
• investors participating under a shareholder-approved investment agreement

Issuances must begin within one year and be completed within the relevant project period, which may extend to five years for employee plans or two years for investor allocations. Any shares that remain unallocated at the end of the project must be cancelled through a paid-up capital reduction.

Equity Incentives for Talent and Investors

Treasury shares or newly issued shares may be used for equity awards or investment arrangements, provided they follow the approved timelines and conditions. This approach simplifies the use of equity as compensation or investment consideration, which is fundamental to modern start-up growth models.

Venture Investment Mechanics

The Draft Act expressly permits debt-to-equity conversion where the creditor’s rights arose before the special resolution approving the relevant investment agreement. Preferred shares may also be converted into ordinary shares where this is allowed by the company’s articles, with streamlined procedures for issuing new share certificates.

Taken together, these mechanisms support bridge financing, convertible notes, staged investments, and employee stock plans, bringing Thai start-up practice closer to international venture norms.

Additional Rights and Benefits Available to Start-up Companies

As well as the corporate and fundraising flexibility, the Draft Act provides Start-up Companies with access to a range of additional regulatory and economic benefits, subject to applicable laws and administrative procedures.

Talent Mobility

A streamlined application process for foreign specialists with advanced skills needed by start-ups, covering both entry permissions and work authorisation.

Tax Incentives

Potential eligibility for tax deductions or exemptions under the Revenue Code and other tax frameworks, subject to criteria that will be issued by relevant authorities.

Government Procurement Opportunities

Recognition of start-up products and services as priority categories for public procurement, helping new companies secure early reference customers and revenue.

Intellectual Property Support

Enhanced pathways for the protection, licensing, and commercialisation of intellectual property under existing IP and research-utilisation laws.

Investment Promotion Schemes

Access to related benefits under the Investment Promotion Act, other competitiveness-related statutes, and special regulations applicable within the Eastern Economic Corridor.

Integrated Financial Support

Start-ups may receive direct financial assistance from the National Innovation Agency, including grants, conditional grants, loans, co-investments, and coordinated access to public and private funding programmes.

The NIA must also maintain a publicly accessible database, updated at least once a month, consolidating all available benefits, support programmes, and funding opportunities for start-ups, providing clear visibility across the ecosystem.

Key Benefits for Thai SMEs

The Draft Startup Promotion and Act offers a more practical and supportive framework for Thai SMEs looking to grow, raise capital, and compete in a changing economy. By updating corporate rules to reflect the current venture practices, the Act will give smaller businesses access to tools that were previously difficult to use under the traditional Civil and Commercial Code.

One of the most significant advantages is greater flexibility in how SMEs can structure investment, manage share allocations, and design equity plans for employees or early contributors. These features help SMEs attract skilled talent and negotiate with investors on more balanced terms

What Does This Mean for Foreign Investors in Thailand?

For Foreign SME Thailand , the recent and proposed SME focused policies highlight a clear policy direction. Thailand is actively promoting SMEs and start-ups as a central part of its economic strategy, while also beginning to align Thailand’s regulatory, tax, and financing frameworks with international business practices.

Through these proposed initiatives, Thai SMEs may benefit directly from tax incentives, liquidity support measures, and improved access to financing, provided the relevant eligibility thresholds are met. Importantly, many of the announced measures apply equally to Thai-owned and foreign-owned companies.

The proposed tax incentives, such as enhanced deductions for digital transformation, lower the effective cost of technology investment and operational scaling. For SMEs, this allows faster market entry, improved efficiency, and stronger long-term competitiveness, particularly in sectors where digital infrastructure and compliance systems are used.

The Quick Big Win policy measures also have broader implications for SMEs. Changes to customs duties on low-value imports are likely to reduce price distortions created by untaxed cross-border e-commerce, improving competitive conditions for locally established businesses. Also, faster tax refund processing and expanded SME credit guarantees can significantly improve cash flow management for SMEs during early growth stages.

For investors with an innovation or venture focus, the Draft Start-up Promotion Act will provide a clearer legal option for investors, venture capital funds, and entrepreneurs to participate in Thai start-ups using familiar investment tools such as convertible instruments, preference shares, treasury shares, and equity incentive plans. These reforms reduce barriers when negotiating investment terms.

The Act’s proposed initiatives for hiring foreign employees are also very important for foreign investors. Streamlined immigration and work authorization processes for skilled foreign workers would support cross-border team deployment, regional headquarters strategies, and technology transfer into Thailand.

However, while these proposals introduce a lot of positives, they also introduce new compliance considerations. Eligibility thresholds, listing requirements with the National Innovation Agency, post-approval employment obligations, and ongoing self-certification requirements will require careful planning and monitoring. 

Foreign investors should assess early whether their Thai structures, revenue profiles, and growth plans align with the proposed frameworks.

Please note that this article is for information purposes only and does not constitute legal advice

Introduction:

Due to the ever growing economic challenges happening around the world, business rehabilitation has become an increasingly important option for companies facing financial problems. In 2024, the Thai economy was projected to grow by only 2.5%, significantly below the government’s 5% target. This poor growth was due to things such as factory closures around the country, rising energy costs, and competition from cheap imports. Notably, nearly 2,000 factories shut down between July 2023 and June 2024, resulting in over 51,500 job losses, a trend that appears to be continuing in 2025.

In Thailand, the number of business rehabilitation applications increased to 34 cases in 2023, up from 25 in 2022 . Approximately 50% of these cases involved companies from the hospitality, real estate, and manufacturing sectors. While data for 2024 and 2025 has not yet been officially published, early indications suggest that filings have remained increased as more companies seek to navigate economic uncertainty through legal restructuring.

The legal framework relating to business rehabilitation in Thailand is governed by two statutes: the Bankruptcy Act B.E. 2483 (1940) and the Act on the Establishment of and Procedure for Bankruptcy Court B.E. 2542 (1999). Under these laws, business rehabilitation proceedings are categorized as bankruptcy actions, placing jurisdiction with the country’s specialized bankruptcy courts.

Key Points

• Only specific entities are eligible for rehabilitation, including limited companies and public companies, with a minimum debt of 10 million Thai Baht and reasonable prospects for successful rehabilitation.
• A rehabilitation planner is appointed to develop a comprehensive plan within three months, which must outline strategies for debt restructuring, operational improvements, and financial recovery, subject to creditor and court approval.
• The process includes an automatic stay that protects the debtor by suspending legal actions, preventing new lawsuits, and restricting asset disposal, creating a stable environment for potential business recovery.
• Special provisions exist for small and medium-sized enterprises (SMEs), offering a more accessible rehabilitation process with lower debt thresholds, simplified petition requirements, and potentially more flexible management control during the rehabilitation period.

Business Rehabilitation Requirements in Thailand

The business rehabilitation process in Thailand begins with determining whether the company is actually eligible for business rehabilitation.

Not all businesses in Thailand are eligible to enter the rehabilitation process. The Bankruptcy Act B.E. 2483 specifies that only certain types of entities can file for rehabilitation:

• Limited companies
• Public companies
• Other juristic persons as specified by ministerial regulations

Eligibility for SMEs in Thailand

Amendments to Thailand’s Bankruptcy Act have introduced new provisions to make business rehabilitation easier for small and medium-sized enterprises (SMEs). 

Previously, only limited and public limited companies with debts of at least THB 10 million could access rehabilitation, which excluded most SMEs. However, under the new provisions the eligibility requirements are available to a wider range of entities, including natural persons, unregistered and registered partnerships, and private limited companies. 

The minimum debt thresholds have also been lowered to the following: 

• natural persons must have at least THB 2 million in debt, 
• private limited companies must have at least THB 3 million in debt, with the max limit for SMEs set at THB 10 million. 

SMEs are also no longer required to be registered with the Office of Small and Medium Enterprise Promotion (OSMEP) to qualify for rehabilitation. The rehabilitation process has also been made a lot easier for SMEs now as well.

For example, SMEs are not required to prepare a detailed rehabilitation plan before submitting a petition, and certain steps, such as appointing a plan preparer and holding creditor meetings have been made quicker and easier for SMEs. 

If creditors holding at least two-thirds of the debt approve a prepackaged plan, SMEs can request an accelerated rehabilitation process. Once a petition is accepted by the court, an automatic stay is imposed to protect the SME’s assets and allow continued operations, including the ability to apply for new loans. 

Additionally, the rehabilitation plan period may be extended from three to five years, giving SMEs more time to restructure and repay debts.

Starting the Rehabilitation Process

Before a company can begin the rehabilitation process, it must first meet specific legal conditions. Filing a rehabilitation petition is the first step and is used to make sure that only eligible businesses, i.e. those with a realistic potential for revival can enter the process. 

For a company to be considered eligible for the rehabilitation process, several conditions must be met:

Absence of Ongoing Bankruptcy Proceedings

The debtor must not be subject to an absolute receivership order, and if the debtor is a juristic person, it must not have been dissolved or had its registration revoked.

Insolvency

The debtor must be insolvent or unable to pay its debts as they become due. 

Minimum Debt Threshold

The debtor must satisfy the minimum debt requirements (natural persons must have at least THB 2 million in debt and SMEs must have at least 3 million and no more than 10 million THB of debt). 

Reasonable Prospects for Rehabilitation

There must be reasonable grounds to believe that the business can be successfully rehabilitated. 

How to File a Business Rehabilitation Petition in Thailand

The rehabilitation process in Thailand can be started by various parties, including the debtor, one or more creditors or, in certain cases involving regulated entities, relevant government authorities. 

To officially begin the rehabilitation proceedings, the initiating party must submit a petition to the Central Bankruptcy Court, which will then decide whether the legal conditions for rehabilitation are met.

A properly filed rehabilitation petition must include the following:

• Clear evidence of the debtor’s insolvency or inability to pay debts
• A list of all creditors, including their addresses and the amounts owed
• A detailed explanation of the reasonable grounds for rehabilitation
• The proposed rehabilitation planner’s name and qualifications
• A letter of consent from the proposed planner

The Role of the Central Bankruptcy Court

Upon receiving a rehabilitation petition, the Central Bankruptcy Court will determine whether to accept or dismiss the case. The court will schedule a hearing to consider the petition, during which both the petitioner and any opposing parties may present their arguments.

The court may dismiss the petition if:

• The filing conditions are not met
• There is evidence that the petition was filed in bad faith
• The proposed planner is deemed unsuitable

If the court accepts the petition, it will issue an order to commence the rehabilitation proceedings and appoint the proposed planner or another suitable individual or entity to prepare the rehabilitation plan.

Automatic Stay and its Implications

One of the most significant benefits of the court accepting a rehabilitation petition is the granting of an automatic stay. The automatic stay provides protection for the debtor by:

• Suspending ongoing legal actions against the debtor
• Preventing new lawsuits or enforcement actions
• Restricting the debtor’s ability to dispose of assets or incur new debts without court approval

The automatic stay remains in effect until the rehabilitation plan is completed, the proceedings are terminated, or the court orders otherwise. This period of protection allows the debtor to focus on developing and starting a rehabilitation plan without the immediate pressure of creditor actions.

Appointing a Rehabilitation Planner

Once the Central Bankruptcy Court accepts the rehabilitation petition, the next step is the appointment of a rehabilitation planner in Thailand. This individual or entity is responsible for developing and overseeing the implementation of the rehabilitation plan. 

The appointment must be approved by the court and plays a key role in supporting the company through its restructuring and recovery.

Selection and Appointment of the Rehabilitation Planner

Appointing a rehabilitation planner in Thailand involves several steps and considerations:

1. Initial Nomination: The rehabilitation petition will include a proposed planner. This could be an individual, a juristic person, a group of persons, the debtor itself, or executives of the debtor.
2. Court Consideration: Upon accepting the rehabilitation petition, the court evaluates the suitability of the proposed planner. The court may approve the nomination or, if it considers the proposed planner unsuitable, order the official receiver to convene a creditors’ meeting to select an alternative.
3. Creditors’ Meeting: If required, creditors vote on the planner selection. A planner is appointed with a vote of two-thirds of the total debt value of all creditors present and voting at the meeting.
4. Court Approval: The court must approve the planner selected by the creditors. If the court does not approve, another creditors’ meeting must be convened to select a new planner.
5. Interim Management: During the period between the court’s acceptance of the petition and the appointment of the planner, the court may appoint an interim executive to manage the debtor’s affairs.

Qualifications and Requirements for Rehabilitation Planners

While the Bankruptcy Act does not specify detailed requirements for who can act as rehabilitation planners, the following factors will usually be considered:

• Professional Experience: Planners should have relevant experience in business management, finance, or restructuring.
• Independence: The planner should be independent of the debtor and major creditors to ensure impartiality.
• Financial Stability: Planners must demonstrate their own financial soundness.
• Consent: The proposed planner must provide written consent to take on the role.

Responsibilities of the Rehabilitation Planner

Once appointed, the rehabilitation planner will be responsible for the following:

Reporting to the Court: The planner must provide regular updates to the court on the progress of plan preparation.

Assessing the Debtor’s Financial Situation: The planner must conduct a complete analysis of the debtor’s assets, liabilities, and challenges.

Drafting the Rehabilitation Plan: Within three months of appointment (extendable twice for one month at a time), the planner must submit a rehabilitation plan to the official receiver.

Considering with Creditors: The planner must review and consider the debt repayment applications submitted by creditors.

Managing the Debtor’s Business: During the plan preparation phase, the planner will take control of the debtor’s business operations.

The Rehabilitation Plan

After a rehabilitation planner is officially appointed, the development of the rehabilitation plan begins. The rehabilitation plan acts as a roadmap for restructuring the debtor’s business, fixing its financial obligations, and helping to make sure the company has long-term viability. 

The plan must outline clear strategies for debt repayment, operational improvements, and, where applicable, asset management or disposal. The plan must be approved by both the creditors and the court.

The rehabilitation plan should includes the following:

• Reasons for the rehabilitation
• Details of the debtor’s assets, liabilities, and other obligations
• Principles and methods for rehabilitation, including:
  • Steps for implementing the rehabilitation
  • Debt repayment strategies and creditor classification
  • Capital restructuring plans
  • Funding sources and conditions
  • Asset management strategies
• Time Frame for plan implementation (not exceeding 5 years, with possible extensions)
• Identity and qualifications of the plan administrator

After submitting the rehabilitation plan, the planner is responsible for presenting it at a creditors’ meeting. During this meeting, the planner must clearly explain the plan’s contents and objectives, while also answering any questions from the creditors or the court. 

If objections are made or if certain provisions require clarification or revision, the planner may need to negotiate and incorporate amendments to the plan in order to receive approval.

Creditor Participation and Rights in the Rehabilitation Process

Creditors play a major role in the business rehabilitation process in Thailand. Their participation and rights are carefully prepared to ensure fair treatment while at the same allowing for the debtor’s potential recovery.

Filing Debt Repayment Applications

The first step for creditors in the rehabilitation process is filing a debt repayment application. This must be done within one month from the date the appointment of the rehabilitation planner is published in the Government Gazette. 

Failure to submit the application within this period may result in the creditor forfeiting the right to receive repayment under the rehabilitation plan. 

The application should include all debts owed by the debtor, regardless of whether the debts are due, not yet due, or conditional, and must account for obligations incurred before the court’s rehabilitation order. 

Please note, this requirement applies to foreign creditors as well.

After the submission of debt repayment applications has been made, a verification and objection process will begin. Within 14 days after the application period ends, other creditors, the debtor, and the rehabilitation planner have the right to review and raise objections to any submitted claims. 

Creditor Classification 

For the purposes of voting on the rehabilitation plan, creditors are classified into groups:

Secured Creditors in Thailand

Secured creditors in Thailand are divided into 2 groups. The first group is made of creditors whose security equal to or exceeds 15% of total debts. The second group is made up of those whose security is below this threshold.

Unsecured Creditors in Thailand

Unsecured creditors in Thailand are those who do not hold any security interest or collateral over the debtor’s assets. Unlike secured creditors, they have no preferential rights to enforce claims against specific assets for their own benefit. 

The official receiver is responsible for investigating these objections and issuing a decision to either dismiss the application, approve it in full, or approve it in part. 

Creditors who disagree with the official receiver’s decision have the right to appeal by filing an objection with the court within 14 days of becoming aware of the order.

Subordinated Creditors

Those whose claims are legally below to other creditors.

Please note, creditors can object to their classification by filing a petition with the court within seven days of being notified of the classification.

Voting Rights and Plan Approval

Creditors play a significant role in the approval of the rehabilitation plan. To receive approval of the rehabilitation plan, the official receiver convenes a creditors’ meeting where the plan is presented and put to a vote. 

For the plan to be approved, it must meet specific voting thresholds: either it must be supported by creditors representing at least two-thirds of the total debt value present and voting, including a majority from each class of creditors, or by creditors holding at least three quarters of the total debt value present and voting, including at least one class of creditors whose claims would not be fully repaid in a liquidation scenario. 

In certain cases, where the plan contains specific provisions with significant implications, a special resolution may be required, which involves obtaining approval from creditors holding at least 90% of the total debt.

Rights of Dissenting Creditors

Once approved, the rehabilitation plan is binding on all creditors, however creditors who voted against the plan have certain rights:

• Court Objection: Creditors can file objections with the court during its consideration of the plan.
• Appeal: Dissenting creditors can appeal the court’s order approving the plan within one month.
• Fair Treatment Principle: The court must ensure that dissenting creditors receive treatment no less favorable than they would in a liquidation scenario.

Creditors’ Committee

Creditors can choose to create a creditors’ committee to represent their interests, monitor the implementation of the rehabilitation plan and can request information from the plan administrator. 

The committee consists of 3-7 members selected from among the creditors and may recommend the removal of the plan administrator or request the court to cancel the rehabilitation proceedings if the plan is not being properly implemented.

Set-off Rights

Creditors who are also debtors of the rehabilitating company have set-off rights. Set-off is a legal right that allows parties to reduce or discharge a debt by offsetting it against a claim they have against the other party. This can significantly reduce a creditor’s risk and simplify their position in the rehabilitation process.

Set-off can be exercised at any time before the rehabilitation plan is approved by the court.

New Funding Provisions

Creditors providing new funding to the debtor during the rehabilitation process receive certain protections including:

• Priority: Debts arising from new funding are given priority in repayment under the rehabilitation plan.
• Exemption: These creditors are not required to file debt repayment applications for the new funding provided.

International Creditors

For international creditors, Thailand’s bankruptcy laws do not automatically recognize foreign insolvency proceedings or orders. However, Foreign creditors can apply for separate enforcement of their rights in Thai courts.

Legal Protections and Restrictions During Rehabilitation

The business rehabilitation process in Thailand provides various legal protections for the debtor company while also imposing certain restrictions. These measures are designed to create a stable environment for the rehabilitation efforts to proceed while protecting the interests of creditors and other stakeholders.

Automatic Stay

One of the most significant protections provided to a debtor in rehabilitation is the automatic stay. The automatic stay takes effect as soon as the court accepts the rehabilitation petition and remains in effect until the rehabilitation plan is completed, the proceedings are terminated, or the court orders otherwise.

This protection includes the suspension of ongoing legal actions against the debtor and prevents the initiation of new lawsuits or enforcement proceedings during the rehabilitation period. 

Additionally, secured creditors are restricted from enforcing their security interests, and repossession of assets that are essential to the debtor’s business operations is prohibited. 

Restrictions on Debtor’s Actions

While the automatic stay provides protection to the debtor during rehabilitation, it also imposes important restrictions to also protect the interests of creditors. 

The debtor is prohibited from disposing of, distributing, or transferring assets without court approval, unless such actions fall within the ordinary course of business.  Additionally, the debtor cannot incur new debts or create new encumbrances over its assets without the court’s permission. Control over the company’s management is also affected, as authority to operate the business is transferred to the court-appointed rehabilitation planner or plan administrator.

Ongoing Contracts

The rehabilitation process affects the debtor’s ongoing contractual relationships. Generally, contracts remain in force during the rehabilitation process. However, the planner or plan administrator has the right to reject unfavorable or burdensome contracts. However, in order to do so they must receive court approval.

Claimants to rejected contracts can file claims for damages, which are treated as unsecured claims in the rehabilitation process.

Employee Protections

Thai law provides certain protections for employees of companies undergoing rehabilitation, for example, the rehabilitation process does not automatically terminate employment contracts and employee wages are given priority in the order of debt repayment.

Any significant changes to employment terms or large layoffs typically require court approval.

Clawback Provisions

The rehabilitation process includes provisions for reversing certain pre-rehabilitation transactions:

• Fraudulent Transfers: Transactions made with the intent to defraud creditors can be voided.
• Preferential Payments: Payments made to certain creditors shortly before the rehabilitation petition that give them an unfair advantage may be reversed.
• Look-back Period: These provisions typically apply to transactions made within a specified period before the rehabilitation petition.

Confidentiality and Public Disclosure

The rehabilitation process balances the need for transparency with business confidentiality. The fact that a company is undergoing rehabilitation is publicly recorded. However, certain sensitive business information in the rehabilitation plan may be kept confidential from the general public.

The debtor and planner must provide necessary information to the court and creditors, but may seek protective orders for highly sensitive data.

International Aspects of Business Rehabilitation in Thailand

Thailand does not automatically recognize or enforce foreign bankruptcy or rehabilitation orders. The recognition of foreign proceedings, if any, is determined on a case-by-case basis by Thai courts. Even when recognized, foreign proceedings generally do not directly affect assets located in Thailand.

Framework for Foreign Cooperation

Thailand has not adopted the UNCITRAL Model Law on Cross-Border Insolvency, and there are no specific bilateral agreements relating to cross-border rehabilitation. Therefore, foreign cooperation in insolvency cases largely depends on Thai domestic law and court discretion.

Jurisdiction over Thai Assets

The Thai legal system operates a territorial Approach and Thai courts claim jurisdiction over all assets of the debtor located in Thailand, regardless of the debtor’s domicile or the location of its main proceedings.

Participation of Foreign Creditors

Foreign creditors have rights to participate in Thai rehabilitation proceedings and foreign creditors are treated equally to domestic creditors.

Our Thoughts

With today’s increasing economic uncertainty, businesses in a range of industries are facing increasing financial challenges. Understanding the legal framework and practical steps involved in business rehabilitation is more important than ever for companies seeking stability and preserving long-term viability. 

Whether your business is already experiencing financial problems or you want to proactively assess potential risks, exploring rehabilitation options can be an important step toward recovery. Contact us today to review your business’s current financial health and receive feedback and guidance on the most appropriate restructuring solutions available under Thai law from our legal experts.

Please note that this article is for information purposes only and does not constitute legal advice

Introduction:

In response to growing global trade pressures, especially U.S. tariffs on Thai exports, Thailand is reshaping its investment strategy for 2025. Led by the Board of Investment (BOI), the new incentives aim to keep the country competitive while building a stronger, high-tech domestic supply chain. Electric vehicles (EVs) and advanced electronics have been identified as key focus areas.

Central to the plan is Thailand’s 30/30 EV policy. The 30/30 policy aims for zero-emission vehicles to make up 30% of all auto production by 2030. This would be equal to 725,000 electric cars and 675,000 electric motorcycles each year. The BOI’s 2025 incentives are designed to attract the investment, tech, and expertise needed to make that happen.

Key Points

• The country aims for zero-emission vehicles to comprise 30% of total auto production by 2030, targeting 725,000 electric cars and 675,000 electric motorcycles annually.
• Companies investing over THB 5 billion in battery electric vehicle manufacturing qualify for 8-year corporate income tax exemptions with no profit cap, while smaller projects receive 3-year exemptions.
• Manufacturers must use 40% local content for BEVs, 45% for PHEVs, and 15% for EV components to qualify for additional 2-year, 50% corporate income tax reductions.
• Companies must obtain certification from the Federation of Thai Industries (FTI) to access local content-related incentives.
• BOI-promoted EV projects allow complete foreign ownership of Thai companies, including land ownership rights and streamlined visa processes for foreign executives and employees.

What’s New in Thailand’s 2025 BOI EV Strategy?

Thailand’s Board of Investment (BOI) has introduced a new strategy for 2025 to promote the country’s role as a leading hub for electric vehicles (EVs) and smart electronics in the region. A key highlight of this plan is the introduction of a new incentive: an extra two-year, 50% corporate income tax reduction for manufacturers that meet updated local content requirements.

Thailand wants to move beyond being just an assembly base. By encouraging companies to source more materials and components locally, the BOI aims to strengthen domestic supply chains, support Thai suppliers, create skilled jobs, and boost the country’s long-term competitiveness in the EV and electronics industries.

BOI Local Content Requirements: What Investors Need to Know

The new local content requirements are a key feature of the BOI’s 2025 plans, and are designed to improve domestic value chains and promote Thailand’s industrial growth, particularly in the EV and electronics sectors.

What is local content?

Local content refers to the use of materials, components, or services that are sourced or produced within Thailand. To qualify, these locally sourced inputs must be directly used within the final production process of the promoted activity, such as vehicle assembly, battery production, or electronics manufacturing. 

For example, using Thai-made battery cells, sensors, circuit boards, or automotive components in the production of EVs would count toward meeting local content thresholds.

Minimum Local Content Thresholds

To qualify for the additional two-year, 50% corporate income tax reduction, manufacturers must use a specified percentage of locally sourced raw materials and components in their production. 

The thresholds, which are calculated based on the value of the materials, vary by product category:

40% for EVs and Electrical Appliances

Manufacturers of Battery Electric Vehicles (BEVs) and household electrical appliances must ensure that at least 40% of the total value of the raw materials used in their products is sourced from within Thailand.

45% for Plug-in Hybrid Vehicles (PHEVs)

The requirement for Plug-in Hybrid Electric Vehicles (PHEVs) is slightly higher, and has been set at a minimum of 45% local content. 

This may be due to the more complex mix of traditional and electric components in these vehicles, offering wider opportunities for local suppliers. For manufacturers of individual EV components, the threshold is set at 15% local content

What Qualifies as Local Content?

The BOI defines “local content” as the total value of raw materials, parts, and components that are sourced domestically and used in the production process. Importantly, the local content is calculated based on the value of the materials and components used in production, not the selling price or retail value of the finished product.

As such, companies must evaluate the full bill of materials for each product, such as a vehicle, appliance, or electronic device, to determine the proportion of local versus imported content. This requires a detailed breakdown of each component used, including its origin and corresponding cost.

To ensure consistency, the BOI has delegated local content verification to the Federation of Thai Industries (FTI), which reviews documentation and confirms whether companies meet the thresholds required to qualify for related incentives.

Local Content Requirements for BOI Incentives

BOI Certification for “Made in Thailand” Products

An important requirement for being eligible for the new local content-related incentives is obtaining the mandatory “Made in Thailand” (MiT) certification from the Federation of Thai Industries (FTI).

For investors, this is an important change in how BOI incentives are obtained. It’s no longer about submitting paperwork to the BOI, you now also need to work closely with the private sector, specifically the Federation of Thai Industries (FTI).

To qualify for local content incentives, businesses must plan early to meet the “Made in Thailand” (MiT) certification requirements. This means identifying reliable Thai suppliers, making sure their products meet the necessary quality standards, and working with the FTI to obtain the required approvals.

What Other EV Manufacturing Incentives in Thailand are Available from the BOI?

Announced in July 2025, the “Thai Enterprise Competitiveness Enhancement Measures for the New Global Era” is Thailand’s response to rising global trade pressures, most notably a 36% U.S. tariff on Thai imports starting August 1, 2025. 

The BOI’s five-pillar plan focuses on promoting local competitiveness, increasing local content, tightening oversight to prevent trade circumvention, regulating sensitive sectors, and updating rules on foreign labor. Together, these measures aim to future-proof Thailand’s industrial base, supporting both SMEs and multinationals and strengthen its position in a rapidly shifting global economy.

Read Also: Thailand’s S-Curve Industries: Driving Economic Growth & Innovation

Targeted Sectors: EVs, Electronics, and Clean Industry

Thailand’s 2025 investment strategy places an increased focus on high-growth, high-technology industries, particularly electric vehicles (EVs) and advanced electronics, and made these areas the foundation of its future economic development. 

To support this, the Thailand Board of Investment (BOI) has implemented targeted incentives aimed at encouraging integration between these sectors and establishing Thailand as a leading hub for next-generation industrial production.

Key promotion categories include:

• Category 3.8: EV Manufacturing – Covers BEVs, PHEVs, and HEVs. Offers top-tier (A1) incentives, including up to 8 years of corporate income tax (CIT) exemption with no cap on exempted profits.
• Category 4.1: Electronic Design – Supports upstream, IP-driven projects with A1-level incentives and 8-year CIT waivers for certified innovation or R&D.
• Category 4.2: Semiconductors & Sensors – Focuses on wafer, ICs, PCBs, and sensors. Large projects over THB 1.5 billion can qualify for up to 13 years of tax exemption under A1+ classification.

Summary of Key BOI Electronics & EV Manufacturing Incentives in Thailand (2025) 

The objective is not only aimed at attracting foreign investment; it is to develop a self-sustaining, high-tech industrial ecosystem. Due to the growing roles and demand for advanced electronics and semiconductors in electric vehicle (EV) production, the simultaneous development of both sectors is a logical step. 

Domestic demand from EV manufacturers promotes local electronics output, while a strong electronics industry improves Thailand’s competitiveness as a preferred manufacturing base for global automotive firms.

Timeline and Key Implementation Dates

For investors looking to take advantage of Thailand’s 2025 BOI strategy and the EV 3.5 package. The following timeline outlines the most dates for compliance and opportunity:

December 31, 2027 – Final deadline for companies seeking to invest in battery cell production to apply for BOI benefits and incentives. 

July 16, 2025 – The BOI formally announces its five-point policy framework to address global trade pressures and strengthen industrial competitiveness.

August 1, 2025 – A 36% reciprocal tariff on certain Thai imports by the United States comes into effect, serving as a primary catalyst for the new incentive measures.

2024–2027 – Operational period for the EV 3.5 promotion package, including market-stimulating tax reductions and consumer subsidies.

2024–2025 – Approved companies may import Completely Built-Up (CBU) EVs at a reduced import duty (up to 40%) provided they commit to establishing local production.

December 31, 2025 – Deadline for submitting applications for productivity-enhancing incentives, such as investments in automation and robotics.

By 2026 – Companies benefiting from CBU import privileges under EV 3.5 must begin local EV production, maintaining a 1:2 production-to-import offset ratio.

By 2027 – If local production begins in 2027, the offset ratio increases to 1:3.

BOI Opportunities for Foreign Investors in the EV Supply Chain

Thailand’s 2025 incentive package offers attractive benefits for foreign investors looking to establish a competitive, resilient manufacturing base in Southeast Asia. The new framework enables companies to take advantage of cost-efficient operations within one of the world’s fastest growing EV markets.

As well as the new incentives mentioned above, the BOI also offers the following incentives to companies involved within the EV supply chain.

The BOI’s general business benefits and financial/tax incentives are among the most competitive in Asia, and are aimed at lowering both initial investment costs and ongoing operational expenses for eligible projects.

General Business Benefits

The BOI offers highly attractive benefits that help foreign investors overcome key legal and operational challenges when entering the Thai market.

100% Foreign Ownership of a Thai Company

Companies who have received a BOI promotion, are permitted to be 100% foreign owned (subject to certain exceptions), even in sectors normally restricted under the Foreign Business Act. This allows foreign shareholders full control over operations without requiring a Thai partner, an important advantage in Thailand where foreign ownership is often capped at 49%.

A BOI promotion also exempts qualifying businesses from needing a Foreign Business License, significantly reducing setup time and regulatory complexity.

Land Ownership Rights for BOI Companies

One of the most valuable general business benefits available under BOI promotion is the right for a foreign owned company to own land in Thailand. While Thai law generally prohibits land ownership by foreign entities, BOI-promoted companies may be granted approval to acquire land specifically for use in their promoted activities. 

Additional General Business Benefits

BOI-promoted companies may also benefit from:

• Streamlined visa and work permit processes for foreign executives, employees, and technicians
  
• Permission to remit foreign currency abroad, including dividends, loan repayments, and royalties
  
• Streamlined import/export procedures, especially for machinery and R&D equipment
  
• Eligibility for government-sponsored training and R&D support programs

Tax Incentives

As well as the general business benefits, the BOI also offers companies significant tax incentives which can be highly beneficial for a company. Examples include:

• Corporate Income Tax (CIT) Exemptions: Offered on a tiered basis, depending on project type, technology level, and investment size, ranging from 3 to 13 years. 

For example, BEV projects under THB 5 billion receive a 3 year exemption (extendable), while those over THB 5 billion qualify for 8 years. Advanced semiconductor projects may receive up to 13 years of exemption.

Additional CIT Reductions: Companies in the EV and electronics sectors that meet local content requirements receive an extra 2-year, 50% CIT reduction, added on top of their existing incentives.

Import Duty Waivers: Full exemptions apply to machinery, R&D equipment, and raw materials used in the production of export goods, helping reduce upfront setup costs.

FAQs: Thailand BOI EV Incentives 2025

What is the 30/30 EV policy in Thailand?

The “30/30” (also known as the 30/30) policy is Thailand’s national target for the electric vehicle industry. It aims for Zero Emission Vehicles (ZEVs), which include Battery Electric Vehicles (BEVs) and Fuel Cell Electric Vehicles (FCEVs), to account for at least 30% of the country’s total automotive production by the year 2030. The specific production goals are to manufacture 725,000 electric cars and 675,000 electric motorcycles annually by that date.

What qualifies as “Made in Thailand” under BOI rules?

To qualify as “Made in Thailand” for the purpose of accessing specific BOI incentives, a product must be certified under the “Made in Thailand” (MiT) program, which is administered by the Federation of Thai Industries (FTI). This certification is granted to products that meet the specified local content thresholds, which are calculated based on the value of locally sourced raw materials and components used in their production.

How much local content is required for BOI tax incentives?

To be eligible for the additional 2-year, 50% corporate income tax reduction, manufacturers must meet the following minimum local content thresholds, based on the value of raw materials:

• Battery Electric Vehicles (BEVs): 40%
• Plug-in Hybrid Electric Vehicles (PHEVs): 45%
• EV Components: 15%
• Household Electrical Appliances: 40%

Can foreign companies access BOI incentives for EV projects?

Yes, absolutely. A key benefit of receiving BOI promotion is the right for a company to be 100% foreign-owned, a privilege not typically available under the Foreign Business Act. Foreign companies are the primary target for the large-scale EV manufacturing incentives, including tax incentives, import duty exemptions, and non-tax benefits like land ownership and facilitated work permits for foreign experts.

Do PHEVs qualify under the BOI’s new EV incentive scheme?

Yes, Plug-in Hybrid Electric Vehicles (PHEVs) are included in the new BOI incentive scheme. To qualify for the additional 2-year, 50% CIT reduction, PHEV manufacturers must meet a 45% local content requirement. 

Additionally, the government has revised the excise tax structure for PHEVs, which, effective January 1, 2026, will be determined solely based on the vehicle’s electric range, removing the previous condition related to fuel tank size.

Please note that this article is for information purposes only and does not constitute legal advice

Introduction:

After a two-year delay, Thailand has restarted its plans to regulate artificial intelligence (AI). On May 2, 2025, the Electronic Transactions Development Agency (ETDA) held a public meeting to provide more information about the proposed AI legislation.

Due to the rapid growth and fast-changing legal and technological developments in AI, ETDA’s original draft law closely followed the European Union’s model. However, as AI continues to evolve, the ETDA has decided to amend the original draft and adapt it to match more closely with Thailand’s specific needs.

The newly proposed framework is based on international research and an analysis of how other countries are regulating AI. It focuses on five main areas, to ensure that AI can be safely and effectively developed, deployed, and used in Thailand, while also protecting users and encouraging technological growth.

Key Points

• Thailand’s draft AI law uses a risk-based regulation approach, delegating responsibility to sector-specific regulators.
• High-risk AI providers must implement risk management frameworks, maintain human oversight, keep operational logs, and report serious incidents to authorities.
• The law supports innovation through controlled regulatory sandboxes for testing and allows use of public data for AI development (with commercial use requiring permission).
• Foreign AI companies must appoint legal representatives in Thailand and consider ownership structures as AI businesses fall under the Foreign Business Act restrictions.
• The AI Governance Center will oversee implementation, with regulators given powers to issue stop orders, request platform takedowns, seize AI products, or block internet access for non-compliant systems.

Main Areas of Focus in the Draft AI Law

The updated framework is based on international research and an analysis of how other nations are managing AI. It focuses on five main areas, each designed to balance innovation with responsible oversight:

Risk-Based AI Regulation

One of the main areas of focus for the proposed artificial intelligence law is to manage risk in a way that’s practical and adapted to be used across different industries.

Delegation of Authority to Enforcement Bodies and Sectoral Regulators

To achieve this the ETDA plans to delegate the responsibility for identifying and managing AI risks to industry-specific regulators. This is a different approach from originally planned, which was to create a fixed list of banned or high-risk AI systems.

This approach has been chosen because every sector faces different kinds of risks when using AI. Specific sector regulators are more familiar with the issues and risks in their fields, therefore, they can more accurately decide what should be considered as “high-risk” AI. 

These regulators will have the power to issue more detailed rules for their respective industry, but these rules must align with the overall artificial intelligence law.

There will also be the creation of a central enforcement agency that will oversee the process, helping to coordinate between sectors and address any gaps where no specific regulator is in charge.

Duties for AI providers considered high risk

Companies that use high-risk AI systems will be subject to an expected ‘duty of care’ which requires them to follow a set of responsibilities under the draft law to ensure accountability and protect the rights of individuals who may be affected by AI.

Under the draft AI law, organizations must:

• Maintain human oversight of high-risk AI systems to prevent harmful or unexpected outcomes.
• Keep detailed operational logs to track how the AI is functioning and being used.
• Ensure the accuracy and quality of input data, which directly impacts the AI system’s output.
• Notify individuals if an AI system could affect their rights or interests, such as decisions about credit, employment, or public services.
• Cooperate with investigations if something goes wrong, particularly if harm has been caused due to the AI.

AI systems classified as high-risk by regulators, must also implement the following:

Risk Management Systems

High-risk AI providers must set up formal risk management frameworks, for example, following international standards like ISO/IEC 42001:2023 or the NIST AI Risk Management Framework.

These systems will help to identify, assess, and reduce potential harm. If providers do not meet these standards, they may still be held liable if their failure to follow best practices leads to real harm. 

Local Legal Representation

AI providers who are based outside of Thailand must appoint a legal representative within the country. This ensures Thai authorities can properly enforce the law and hold providers accountable.

Serious Incident Reporting

If an AI system causes unexpected harm or poses a safety risk, providers will be required to report the incident to the relevant enforcement agency. This allows regulators to step in quickly and take appropriate action.

Support for Innovation

To encourage AI development, the draft law introduces some policies to encourage innovation. The two main areas are:

Data Access for AI Development

Developers will be allowed to use publicly available online data for tasks such as text and data mining, which are an important part of training AI systems. This method is similar to how the EU approaches similar issues. 

However, if the developer wishes to use that data for commercial purposes, they will still need to get permission from the data’s owner or rights holder.

Real World Testing Using Sandboxes

The draft also encourages the use of regulatory sandboxes i.e. controlled environments where companies can test AI systems in real life situations. These sandboxes will be set up through agreements between private companies and the relevant government agencies.

AI companies who operate within these sandboxes may be allowed to use personal data that was originally collected for other purposes, as long as the data is only used for serving the public interest.

To reduce the risk for innovators, the draft law includes a “safe harbor” rule. The safe harbor rule will protect companies from being punished for any unintended harm that occurs during testing.

In order to be covered by the safe harbour rule, the company must act in good faith and follow the sandbox rules. However, safe harbor does not protect the company from civil liability and they may still have to compensate individuals if any real harm is caused.

Read More: BOI Incentives for Renewable Energy in Thailand – Here’s What You Need to Know for 2025

General Legal Principles

The draft AI law is based upon key legal principles that aim to promote fairness, transparency, and accountability. These following principles have been designed to protect individuals and encourage responsible AI use:

Nondiscrimination

AI-generated decisions, such as automated contracts or administrative rulings will be treated as legally valid. People won’t be denied any rights or services simply because AI was used in the decision-making process.

AI is a Tool and not a separate entity

No matter how advanced an AI system is, its actions must always be traceable back to a human. Developers and users can’t deny responsibility because the AI acted in an unpredictable way. The ultimate responsibility will remain with the people who develop or use the technology.

Protection from Unexpected AI Actions

The draft law also contains safeguards against AI errors that couldn’t have been reasonably predicted. If an AI system does something no one could have expected, and if the person affected didn’t know and couldn’t have known about the risk, they may be protected from being legally bound by that action.

Right to Explanation and Appeal

People should have the right to understand and challenge decisions made by AI. Examples include:

• Being told when AI is involved in making a decision that affects them
• Receiving an explanation of how the AI reached that decision
• Having a way to appeal or challenge the outcome, possibly through a human review of the action.

AI Regulation and Regulatory Oversight

The draft artificial intelligence law assigns oversight responsibilities to the AI Governance Center (AIGC), which already operates under Thailand’s Electronic Transactions Development Agency (ETDA).

The AIGC will play a leading role in properly implementing the law. Its main responsibilities include:

• Research and development in AI governance to help shape future policies
• Advising organizations on how to adopt and use AI responsibly
• Supporting pilot programs and regulatory sandboxes that allow businesses to test AI in real conditions under controlled oversight
• Monitoring global AI trends and best practices to keep Thailand aligned with international standards
• Collecting data to assess Thailand’s readiness for AI 
• Creating partnerships both in Thailand and with international organizations to support consistent and collaborative AI governance

Enforcement Mechanisms

The draft AI law will grant power to regulators to take action when AI systems are used in illegal or unsafe ways.

In such situations, regulators will be able to:

Issue stop orders

If an AI provider or user is found using prohibited or high-risk AI, regulators can issue an official order requiring them to stop offering or using the service.

Platform takedowns

If the AI system is available through a digital platform, e.g. a website or app, regulators will be able to request the platform to block or remove access to the service.

Seizing physical AI products

If the AI is part of a physical product (like a robot or smart device), regulators will be able to seize the product.

Blocking internet access 

If the noncompliant AI is hosted outside a digital platform or the platform doesn’t follow the stop order, regulators can work with the Ministry of Digital Economy and Society to block access to the AI system through internet service providers (ISPs) in Thailand.

What This Means for Businesses in Thailand

For businesses that operate in the AI space, or use AI tools heavily for their business activities, this draft law could have significant effects on their business. If the draft legislation becomes law, it could significantly impact how AI is developed, used, and regulated in Thailand.

Businesses involved in AI should closely review the draft law and consider how its proposed rules might impact their operations. This is particularly important for companies who use complex AI systems.

Foreign Ownership Rules for AI Companies in Thailand

The Foreign Business Act may restrict foreign ownership in AI development and other AI businesses as it falls under the general restrictions of service activities. There are however several options available to AI companies in Thailand including:

• A Thai Limited Company with a Thai Partner
• 100% foreign ownership via a BOI promotion and a Foreign Business Certificate
• 100% foreign ownership via a Foreign Business Licence  

Limited Company with a Thai Partner

The Foreign Business Act restricts foreigners from undertaking about 50 types of business. AI businesses are considered service businesses which are restricted as per Clause 20 of list 3 of the Foreign Business Act .

However, a popular alternative for foreign investors who wish to operate an AI business is to create a Thai company (a company registered in Thailand with Thai shareholder(s) owning more than 50% of the share capital). 

Such a set up would mean the restrictions of the FBA would not apply as the company is not considered foreign. However, the Thai partners must not be nominees as Thailand forbids the use of nominee shareholders. 

BOI Promotions for AI 

While the BOI doesn’t offer any promotions directly relating to AI at the moment, they do offer promotions that include digital activities. Business activities that are covered under digital activities include developing software, which could be suitable for some AI business activities and AI development. 

BOI Incentives and Benefits for AI Projects

BOI-promoted companies in Thailand receive significant advantages compared to regular Thai limited companies. 

One of the most important benefits is the ability to have 100% foreign ownership, allowing the company to avoid the typical 49% limit imposed by the Foreign Business Act. In addition, BOI-promoted businesses are issued a Foreign Business Certificate, which exempts them from restrictions on over 50 business categories otherwise restricted to foreign-owned companies. 

Another important advantage is the flexibility in hiring foreign talent. Unlike standard companies, which must maintain a 4:1 ratio of Thai to foreign employees, BOI-promoted firms are not subject to these quotas when hiring skilled foreign professionals.

Read More: Thailand’s S-Curve Industries: Driving Economic Growth & Innovation

Tax Benefits

Successful applicants for a BOI promotion for software will also be eligible for a corporate income tax exemption cap of 100 percent of the actual expenditure for the incentive is as follows: 

Expenditure on the operation to acquire the standard quality system certificate ISO 29110 or CMMI from Level 2 or other equivalent international standards.

Expenditure on salaries for Thai information technology personnel additionally employed in comparison with Thai information technology personnel employed before the application submission date for investment promotion. 

Expenditure on the information technology development-related training course to develop Thai personnel’s skills. 

Our Thoughts

Thailand is putting a lot of effort into regulating artificial intelligence (AI) in a way that promotes innovation while ensuring responsible development. On May 2, 2025, the Electronic Transactions Development Agency (ETDA) introduced a revised draft of its AI legislation, which adopts a risk-based approach. The new framework encourages real-world testing through regulatory sandboxes, permits the use of public datasets for AI development, and outlines clear requirements for providers of high-risk AI systems. 

While AI is a restricted service under Thailand’s Foreign Business Act, foreign companies can still operate with full ownership by applying for a promotion from the Board of Investment (BOI). Although the BOI does not yet offer a specific category for AI, many AI-related businesses, such as software and digital platform developers, may qualify under existing digital activity categories.

Receiving a BOI promotion allows 100 percent foreign ownership, grants a Foreign Business Certificate which permits a foreign company to engage in restricted activities under the FBA, removes local hiring quotas for skilled foreign professionals, and provides access to tax exemptions.

If you are planning to start your AI business in Thailand, now is the ideal time to take advantage of this rapidly developing sector. Contact us to learn how we can support your success in Thailand’s growing AI ecosystem.

Please note that this article is for information purposes only and does not constitute legal advice

FAQ

Thailand’s growing economy, strategic location in Asia, and investor-friendly policies such as the Board of Investment make it an attractive destination for foreign entrepreneurs. For foreign investors, acquiring an existing business can be a more efficient and less risky way to enter the market than starting their own business.

This guide provides a detailed overview of the legal, financial, and operational aspects for investors who wish to buy a business in thailand.

Key Points

• Buying a business in Thailand offers significant advantages, including ready-to-use infrastructure, an established market presence, and immediate access to the company’s operations, which can improve profitability.
• Thorough due diligence is highly recommended, including examining corporate documentation, financial health, contracts, operational factors, and legal compliance to identify potential risks and hidden liabilities.
• Investors must choose between two acquisition options: purchasing the entire business (inheriting all assets and liabilities) or buying specific assets (providing more flexibility but potentially disrupting existing relationships).
• The legal transfer of ownership involves a series of steps, including updating shareholder registers, executing share transfer instruments, changing directors, and registering asset transfers with relevant Thai authorities.

What are the First Things to Consider when Buying a Business in Thailand?

Purchasing a business in Thailand is a significant undertaking that is not free from risk. In order to make sure that the purchase is the right option for the investor, the following should be considered:

Due Diligence 

Before Buying a business in Thailand, the first and most important step is conducting thorough due diligence. Due diligence allows you to fully understand the business you are acquiring, including the company’s financial health, legal obligations and liabilities, and operational risks.

Choosing whether to purchase the company or just the assets 

In most cases, buying a company in Thailand is the more straightforward option. This allows you to acquire not only the business’s assets but also its existing contracts, employees, and operational structure. Additionally, sellers typically prefer this method because selling individual assets can create tax implications.

If you purchase only the business assets rather than the company itself, the selling company may be subject to corporate income tax on the sale, depending on the asset values recorded in its books. Furthermore, if the company ceases operations after selling its assets, it must go through a liquidation process, which involves additional costs and administrative requirements.

As a result, sellers often require a full company sale rather than an asset-only sale. 

Understanding the company structure as a foreign owner

When purchasing a company in Thailand, it’s important to understand that you are not only acquiring its assets but also inheriting its liabilities. Therefore, it is recommended to examine how the business is structured before finalizing the transaction.

One key consideration is whether the company has foreign shareholders. Thailand has strict regulations on foreign ownership and business activities, so you must ensure that the business has been operating legally. 

If the company does not hold a Foreign Business License (FBL) or a Board of Investment (BOI) promotion allowing full foreign ownership, it likely has Thai shareholders to comply with local regulations. In such cases, due diligence should confirm that these Thai shareholders are legitimate and have properly funded their shares and are not nominees. Nominee shareholders are illegal in Thailand as per the Foreign Business Act.

Since purchasing a company means inheriting its liabilities, you should acquire shares from all shareholders, including Thai shareholders, to ensure full control and legal compliance. If a foreign investor is leading the transaction, the agreement should clearly state that the foreign shareholder will act as an attorney-in-fact for all other shareholders and is responsible for distributing payments. 

The legitimacy of the business being purchased

When buying a business in Thailand, potential buyers should not rely solely on the company’s financial books. Many businesses, especially in industries like hospitality, retail, and entertainment, do not maintain proper accounting books. As a result, their financial statements may not accurately reflect the company’s financial position. In some cases, it may be impossible to verify whether the business generates the revenue it claims.

Buyers should also be careful of sellers who may artificially inflate the business’s apparent success. For example, some may stage a restaurant or entertainment venue with hired patrons to create the illusion of high foot traffic and popularity. Without proper due diligence, you risk purchasing a business that fails to attract genuine customers once the sale is complete.

Another important note is that Thailand is increasingly digitizing its tax system, making it harder for businesses to operate with incomplete or inaccurate financial records. While some businesses may have previously unreported income or avoided taxes, this is becoming much harder to do. 

Before finalizing a purchase, assess how legitimizing operations, including paying VAT, corporate income tax, and proper wages, will impact the business’s profitability. Calculating these costs will help you make an informed decision and avoid unexpected financial issues later on.

Reasons to Buy a Business in Thailand

Purchasing an existing business in Thailand offers some significant advantages over starting a new venture, particularly for foreign investors looking to enter a new market. By acquiring an existing entity, you can take advantage of the established infrastructure, relationships, and market knowledge. 

Quicker Opportunity for Profitability

The ability to maintain continuous operations when acquiring a business in Thailand can significantly reduce the time it takes to achieve profitability by removing the challenges associated with starting from scratch. 

Unlike a newly established business, which often requires extensive market research, brand-building, and customer acquisition, an existing business already has operational systems, a loyal customer base, established supplier relationships, and trained employees in place. 

This allows for the business to keep going and minimises any disruptions and ensures that revenue continues to be generated from day one.

Ready-to-Use Infrastructure

Acquiring a business in Thailand provides immediate access to all the necessary assets required for immediate activity. From an established office space/production facilities, IT systems, and essential equipment required for operation, these infrastructure elements are already in place, removing the need for any initial investments. 

Unlike a startup that requires time to set up workspaces and obtain machinery etc, an established business allows the new owner to complete the purchase and begin operations without major disruptions or delays. 

Acquiring an existing business in Thailand also provides the advantage of established supply chains, customer service protocols, and vendor relationships. Unlike a new business that requires time to build reliable supplier networks, negotiate contracts, and establish service standards, an operational business already has these components in place. 

Additionally, existing company processes have already been tested and refined, reducing the risks associated with trying an untested product. 

Trained Workforce

One of the key advantages of acquiring an existing business in Thailand is inheriting a trained and experienced workforce that is already familiar with the company’s operations, processes, and culture. 

Unlike a new company, which requires extensive recruitment, onboarding, and training, an established business comes with employees who understand the day-to-day workings of the company, customer service standards, and internal systems. 

This allows for a smooth transition of ownership without major disruptions in productivity and maintains business continuity, customer relationships, and supplier connections, all of which are important for long-term stability. 

Existing Market Presence

An established business often comes with an established market position and loyal customer base. Examples of this include:

• Brand Recognition: Acquiring a company with a trusted name and reputation means you inherit that reputation upon buying the company.
• Customer Loyalty: Retaining an existing customer base provides a steady flow of revenue.
• Market Knowledge: The business’s previous operating history within the market can provide you with insights into consumer preferences, competitive information, and potential opportunities for growth.

Pre-Approved Regulatory Compliance

A properly established business should already meet the regulatory requirements for it to be able to engage in its business activities. This means that the company should already have obtained the required business licenses and certifications required to operate. 

Existing Capital Structures

If the business has already satisfied requirements such as the minimum registered capital to hire foreign employees (2 million THB per foreign worker), you may not need to inject additional funds to meet these criteria. Therefore, it comes a lot easier to obtain a work permit for the new foreign owner or employees.

Favorable Economic and Policy Environment

Thailand’s continued economic growth and business friendly policies make it an attractive destination for foreign investors who are looking to acquire a local business. 

Thailand offers a range of government incentives through organizations like the Board of Investment (BOI), which can grant significant benefits such as 100% foreign ownership, tax incentives, and reduced requirements for hiring foreign nationals. 

These incentives can help lower operational costs and simplify the process of starting a business in the country. 

With its combination of favorable economic conditions, governmental support, and expanding sectors, acquiring a business in Thailand provides opportunities for both short-term growth and long-term success.

Risks to Consider When Looking to Buy a Business

While acquiring an established business in Thailand can offer many benefits, it may also face many issues. A detailed understanding of these potential issues is required for mitigating risks and making an informed decision. 

Inherited Liabilities

One of the most significant risks when purchasing a business outright is inheriting the company’s existing liabilities.

What liabilities (debts, legal disputes) might transfer to the buyer?

Unpaid Taxes: Outstanding tax liabilities can result in fines or legal action against the new owner.

Undisclosed Lawsuits: The company may be involved in pending or potential legal disputes that could lead to financial losses or reputational damage.

Contractual Obligations: Pre-existing supplier or customer agreements may impose unfavorable terms or financial commitments that the buyer cannot easily renegotiate.

Liability for Past Misconduct: Even if the buyer had no involvement or prior knowledge, they may be held accountable for the seller’s previous actions, such as: breaches of contract, regulatory non-compliance and fraud or misrepresentation.

Challenges with Lease Agreements

In Thailand, commercial lease agreements can be problematic due to legal limitations. It’s common for businesses to structure leases as three-year agreements to avoid registration requirements. Leases over three years must be registered with the Land Department to remain legally enforceable beyond the third year. Some businesses also structure leases in such a way in order to avoid certain fees, even though the registration fee is not especially high at just 1.1% of the total lease value.

However, if the premises are important to the businesses operations, the business should negotiate lease terms upfront during the acquisition process. Whenever possible, consider trying to obtain extended lease rights directly from the property owner. A registered lease provides stronger legal protection, allowing for a longer lease term and ensuring that your lease rights remain intact even if the landlord sells the property or faces legal issues.

As part of the purchase agreement, it is advisable to include a clause that allows you to negotiate a direct lease with the property owner. 

Unprotected leases can lead to issues later, as there is no guarantee that the landlord will agree to renew the lease under the same terms, or at all. They may also choose to increase the rent or impose unfavorable conditions during renewal negotiations.

Without a long-term lease in place, the businesses ability to operate properly could be disrupted. Additionally, unexpected relocation expenses could be significant and have a big effect on the company’s profitability.

What is Key Money in Thailand?

Key money is a common but not clearly defined concept in Thailand’s rental and lease agreements for commercial property deals. Key money can relate to different payments, including:

• A fee paid to an existing tenant for assigning a lease at a below-market rental price.
• A direct payment to a landlord, 
• A security deposit (usually non-refundable).

In many cases, key money is simply part of the overall lease price, often used as an upfront lump sum payment in exchange for a lower monthly rent. Since key money is usually not declared as part of the renting price, the actual declared rental value is often lower than the market price. Landlords may also require key money again when renewing a lease.

It’s important to note that key money is not a legal requirement under Thai law. It is a common practice used by tenants or landlords to assign lease rights or secure access to a property, but there is no official regulation. 

If you are asked to pay key money, it’s important to understand exactly what is included in the deal and whether it is actually necessary. Key money should always be negotiated carefully, ensuring that you are not paying for something you could otherwise obtain directly from the landlord or through a more favorable lease agreement.

High Capital Investment Requirements

Acquiring an established business in Thailand often requires significant financial investment, as buyers are not only purchasing physical assets but also the goodwill, brand reputation, and operational stability that come with an existing company. 

The initial purchase price is often higher than starting a business from the beginning due to the value of established customer relationships, trained employees, supplier contracts, and established revenue streams. 

However, acquisitions may also require additional capital for renovations, technology upgrades, or rebranding to better align the business with the buyer’s needs. Examples could include, modernizing equipment, updating IT systems, or targeting a new market segment.

Purchasing Only the Assets of a Company

When considering business acquisition in Thailand, investors have the option to purchase a company’s assets instead of the entire entity. This approach has its own set of benefits and drawbacks that may influence your decision. 

Advantages of Purchasing the Assets of a Company

Choosing to purchase only the assets of a company can provide buyers with greater control and flexibility while avoiding certain risks associated with a full business takeover.

Avoidance of Liabilities

One of the main advantages of purchasing assets rather than the entire business is the ability to avoid inheriting the seller’s liabilities.

Since the buyer is not taking over the legal entity, liabilities such as unpaid taxes, existing lawsuits, or outstanding loans tied to the company remain the responsibility of the seller.

The buyer is also less likely to face legal disputes or claims arising from the seller’s prior actions or obligations. Any previous breaches of Thai laws or regulations by the seller do not transfer with the assets.

Flexibility to Choose Assets

With an asset purchase, buyers have the freedom to customize their acquisition. Buyers can acquire only the assets that match with their goals, such as equipment, intellectual property, or inventory, and leave behind unwanted assets or liabilities.

Disadvantages of Purchasing the Assets of a Company

While asset purchases offer significant benefits, there are some drawbacks that may affect the overall value and operational readiness of the acquisition.

Loss of Established Business Benefits

By acquiring only the assets of a business rather than the entire company, a buyer misses out on several key advantages that come with a full acquisition. One major disadvantage is the loss of brand reputation, as purchasing assets does not automatically transfer the goodwill, customer loyalty, or market recognition that the seller’s business has built over time. 

Also, the company operations can be affected, as supplier and customer relationships do not transfer with the assets, requiring the buyer to reestablish contracts and attract customers. 

Another challenge is the workforce, as employees are not automatically included in an asset purchase, meaning the buyer may need to recruit and train new staff or negotiate separate agreements to retain key personnel. 

Higher Tax and Transaction Costs

Purchasing individual assets rather than acquiring the entire business can often result in higher overall costs due to various financial and administrative factors. One significant concern is tax liabilities. 

In Thailand, different asset classes, such as property, equipment, and inventory, may be subject to varying tax rates, potentially increasing the buyer’s total tax burden. Additionally, the process of transferring multiple assets comes with higher legal and administrative expenses, including registration fees, contract drafting, and due diligence costs. 

Need to Renegotiate Agreements

Unlike a full business acquisition, purchasing individual assets often means that existing contracts and agreements do not transfer. This means that Supplier contracts must be renegotiated, which may lead to less favorable terms or disruptions in the supply chain. 

Customer relationships are also not automatically included in the transaction, meaning the buyer will have to establish new agreements with clients which could result in a potential loss of business during the transition period. 

Finally, any licenses and permits held by the seller may be non-transferable, meaning the buyer will have to apply for their own licences should they be required.

Key Steps in Buying a Business in Thailand

When looking to buy a business in Thailand, the following steps should be considered.

1. Conducting Thorough Due Diligence

Due diligence is a key part of a successful acquisition of an existing company. Undertaking due diligence allows prospective buyers to evaluate the target business’s financial health, legal compliance, and performance while identifying any hidden liabilities or risks.

Due diligence protects your investment by providing a complete understanding of the business’s value and potential risks.

Key Areas of Focus

1. Corporate Documentation:
   • Company Registration: Verify that the business is properly registered with the Department of Business Development (DBD) and compliant with Thai laws, including the Foreign Business Act.
   • Shareholder and Director Details: Review the company’s Articles of Association, shareholder agreements, and board resolutions to ensure everything matches with the proposed sale.
2. Financial Health:
   • Financial Statements: Examine audited financial reports, tax returns, and bank statements to assess revenue trends, profitability, and solvency.
   • Outstanding Liabilities: Check for any unpaid debts, tax arrears, or pending legal disputes that could impact future operations.
3. Contracts and Agreements:
   • Lease Agreements: Ensure that property leases are registered with the Land Department if exceeding three years, and review renewal clauses and termination rights.
   • Supplier and Customer Contracts: Review and agreements to understand the business’s ongoing obligations and relationships.
4. Operational Factors:
   • Employee Records: Review employment contracts, benefits, and severance policies to ensure compliance with Thai labor laws.
   • Assets: Verify ownership and valuation of assets, including real estate, machinery, intellectual property, and inventory.
5. Legal and Regulatory Compliance:
   • Identify any ongoing or past legal disputes, unpaid taxes, or compliance issues with permits and licenses.
   • Confirm that the company holds all necessary approvals to operate in its industry.

2. Drafting and Negotiating the Purchase Agreement

Drafting a proper purchase agreement is required to protect your interests and ensure a smooth transaction. Depending on the acquisition structure, you’ll need either a Share Purchase Agreement (SPA) or an Asset Purchase Agreement (APA). A properly drafted purchase agreement reduces the risk of disputes and provides a clear framework for the transaction, protecting both parties’ interests.

Key Components of the Agreement

1. Description of the Transaction: Clearly define whether the sale includes the company’s shares, assets, or both. Specify any exclusions.
2. Financial Terms:
   • Purchase price and payment schedule.
   • Earnout provisions or performance-based payments, if applicable.
3. Representations and Warranties: Assurances from the seller about the business’s condition, compliance, and not having any hidden liabilities.
4. Indemnity Provisions: Protect the buyer against claims or liabilities arising from pre-sale activities.
5. Closing Conditions: Outline requirements to finalize the transaction, such as regulatory approvals, tax clearance, or debt settlements.
6. Post-Sale Obligations: Include non-compete clauses, transitional support from the seller, or employee retention agreements.

Protections for the Buyer in a Share Purchase Agreement

To protect yourself as the buyer, it is recommended to include seller guarantees in the agreement. These guarantees will protect the buyer from any hidden liabilities or undisclosed issues arise within a certain period after the sale, the seller remains liable for them.

In some cases, the buyers of the company may require the previous owner’s involvement for a transitional period. This can help ensure a smooth transfer of knowledge and operational continuity. The former owner may stay on as a consultant or manager for a set period, allowing you to learn the key requirements for the business before fully taking over.

What is an In-Out Clause in Thailand?

Another effective form of buyer protection is to include an in-out clause into the purchase agreement. An In-out clause links part of the purchase price to the company’s actual performance over a defined period after the sale. Instead of paying the full price upfront, an agreed amount is withheld and only paid if the business meets the agreed revenue and income targets.

This clause offers strong protection against sellers fraudulently increasing their finances or misleading buyers about the company’s performance. If the revenue does meet the buyer’s expectations, the withheld amount can be adjusted or forfeited, reducing the buyer’s risk.

3. Completing the Transfer of Ownership

Once the purchase agreement is finalized, the legal transfer of ownership must be completed. This process includes:

Share Transfer

• Execute a share transfer instrument with signatures from the transferor and transferee.
• Update the shareholder register and file the changes with the Ministry of Commerce.
• Pay applicable stamp duty based on the share transfer value.

Director Changes

• Call a board meeting to appoint new directors and define their authority.
• Update the company affidavit with the Department of Business Development (DBD) to show the new management structure.

Asset Transfers

• If purchasing assets, register the transfer of ownership for items such as real estate, vehicles, and intellectual property, with the relevant authorities.
• Ensure all asset-related taxes and fees are paid during the transfer process.

4. Post-Acquisition Restructuring

After acquiring the business, restructuring may be necessary to make sure the company meets your needs.

Key Areas for Restructuring

Corporate Governance

When acquiring a business, updating corporate governance documents is essential to reflect the new ownership structure and ensure compliance with Thai company laws. This includes reviewing and amending key legal documents such as the Articles of Association and shareholder agreements to match your business goals and protect stakeholder interests.

Rebranding

When acquiring a business, rebranding or repositioning can be an option used to bring the company in line with your long-term vision, especially if you plan to target a new market segment. 

Potential options include refreshing the brand identity, adapting the business model, or adjusting the company’s messaging.

If rebranding is required, it should be approached carefully and not have a negative effect on existing customers. 

Employee Retention and Recruitment

When acquiring a business, maintaining a strong workforce can help achieve a smooth transition. Keeping key employees allows for continuity in operations, retains key company knowledge, and helps maintain relationships with customers and suppliers. 

While retaining key staff is important, recruitment allows you to expand your team, bring in fresh expertise, and align the team with your long-term business goals.

Accounting

When acquiring a business in Thailand, it is recommended to change the company’s accountant. While it may seem convenient to keep the existing accountant, choosing your own allows you to gain clear and unbiased insight into the company’s finances and ensure that bookkeeping and tax compliance are handled correctly.

This is increasingly more important due to Thailand’s digitalization of its tax system, businesses that previously operated with poor accounting practices may struggle to continue doing so. Having a new accountant from the start helps you avoid unexpected tax issues and ensures your business operates legally and efficiently.

Please note that this article is for information purposes only and does not constitute legal advice

In recent years, the Thai government has introduced several programs and policies in an effort to promote economic growth in its Southern Economic Zones (SEZs). The Government is looking to encourage investment and business activities in provinces that are not normally popular choices for businesses. 

This article explores the recent tax rate reductions introduced under Royal Decree No. 783 and Royal Decree No. 784, and their effect on businesses and individuals operating within these designated areas.

Key Points

• New tax incentives introduced in Thailand’s Southern Special Economic Zones include a 3% corporate tax rate on net profits and a 0.1% personal income tax rate, effective from January 2024 to December 2026.
• The Southern SEZs include Narathiwat, Pattani, Yala, Satun, and parts of Songkhla.
• Foreign companies operating in SEZs can benefit from 100% ownership rights, import duty exemptions, and eight-year corporate tax exemptions with possible five-year extensions.
• Target industries include agro-industry, electronics, automotive, medical devices, logistics, and tourism-related businesses.
• Skilled employees working in Southern SEZs qualify for a reduced 3% withholding tax rate, provided they have a bachelor’s degree and five years of relevant experience.

Understanding Special Economic Zones (SEZs)

Special Economic Zones (SEZs) are designated areas where the Thai government will provide special incentives to encourage economic growth and attract investment. 

Around the world, SEZs have proven effective in increasing industry, creating jobs, and promoting trade. 

In Thailand, SEZs are being used as part of a strategy to improve regional economic development and international trade. The Thai government has established SEZs across the country with targeted incentives and relaxed regulations to make investing easier and more attractive for businesses. 

Thailand’s Special Economic Zones

SEZs in Thailand have been strategically placed near borders and major trade routes. By locating the SEZs in such areas, businesses have easy access to neighbouring countries like Myanmar, Laos, Cambodia, and Malaysia.

These zones are located in these areas to allow cross-border trade and logistics, reducing the costs and issues associated with moving goods and materials. 

Thailand’s Special Economic Zones focus on promoting specific industries that include:

1. Agro-industry, fisheries and related businesses
2. Ceramic products manufacturing
3. Textile, clothing and leather manufacturing
4. Furniture manufacturing
5. Gems and jewellery manufacturing
6. Medical devices manufacturing
7. Automotive, machinery and parts manufacturing
8. Electronics and electrical appliances manufacturing
9. Plastics manufacturing
10. Pharmaceutical’s manufacturing
11. Logistic businesses
12. Industrial zones or industrial estates
13. Businesses that support tourism

Investment Incentives

Thailand’s Special Economic Zones (SEZs) offer great incentives and advantages for foreign investors. These SEZs are designed to encourage economic growth by providing a competitive business environment, attracting foreign direct investment (FDI), and improving Thailand’s position as a key player in the ASEAN market. 

In order to attract both domestic and foreign investment, businesses who undertake their business activities within Thailand’s SEZs are eligible for special incentives, including:

Tax Benefits

To encourage more businesses to set up in these zones, Thailand offers a range of generous incentives designed to lower costs and boost long-term profitability.

Corporate Income Tax Exemption

Businesses operating within certain designated industries can benefit from an eight-year exemption from corporate income tax, with a potential extension of an additional five years.

Import Duty Exemptions

Companies will also be exempt from import duties on machinery and raw materials essential for production, significantly reducing operational costs.

Eligible companies will also be able to claim an exemption of import duties on raw and essential materials used in manufacturing for export for five years

Double Deductions

For a period of up to ten years, businesses can enjoy double deductions on expenses related to transportation, electricity, and water supply.

Other Deductions

Companies that operate within SEZs may also receive a 25% deduction of the costs of installation or construction of facilities in addition to the deduction of normal depreciation.

General Business Benefits

In addition to tax benefits, SEZs offer various non-tax benefits that can greatly improve the ability for a foreign business to operate in Thailand. The general benefits include:

Foreign Ownership Rights

Within Thailand’s SEZs, foreign ownership rules are often more relaxed and in many cases, foreign businesses can have 100% ownership of a company, depending on the industry. 

Land Ownership

Foreign investors are permitted to own land within SEZs for buildings such as factories or warehouses. 

Employment of Foreign Workers

Businesses will be able to employ foreign skilled and unskilled labour with reduced requirements. More information as to the exact requirements under the new Decree are expected soon, we will update accordingly when announced.

Read also: Thailand’s S-Curve Industries: Driving Economic Growth & Innovation

Incentives Specifically for SEZs Located in the South of Thailand

Royal Decree No. 783, issued on June 5, 2024, introduced substantial tax incentives for businesses and individuals undertaking operations within the SEZs located in the South of Thailand, specifically Narathiwat, Pattani, Yala, Satun, and certain districts of Songkhla. These incentives are designed to lower the financial burden on companies and promote economic activity in these regions.

The tax following tax incentives, will be available from January 1, 2024, through December 31, 2026.

Corporate Income Tax Reductions

One of the most significant benefits of Royal Decree No. 783 is the reduction of corporate income tax rates of only 3% on net profits derived from activities within the SEZ. Eligible companies can benefit from a reduced rate.

To qualify for this reduced rate, businesses must meet specific criteria, including:

• Conducting operations within designated SEZs.
• Deriving income from manufacturing, sales, or services within the SEZ.

Personal Income Tax Reductions

In addition to corporate tax relief, Royal Decree No. 783 also provides significant reductions in personal income tax rates for individuals operating businesses within SEZs. 

Individuals are eligible for a significantly reduced personal income tax rate of 0.1% on assessable income. This reduced rate applies to income from manufacturing, sales, or services conducted within SEZs.

Tax Rate Reductions for Skilled Employees

Royal Decree No. 784 also introduces the following tax benefits for skilled employees and experts working in these areas:

Withholding Tax Rate Reductions

Eligible employees can benefit from a reduced withholding tax rate of 3% on their assessable income. 

To qualify for the reduced withholding tax rate, employees must meet specific educational and experiential requirements, including:

• Relevant work experience, typically five years or more, supported by appropriate documentation.
• A minimum educational qualification of a bachelor’s degree or equivalent.

Corporate Income Tax Deductions for Investments

In addition to tax rate reductions, Royal Decree No. 784 introduces corporate income tax deductions for investments made in SEZs. This measure is designed to attract new investment and stimulate business growth in the region.

To qualify for these deductions, companies or partnerships must meet certain eligibility requirements, including not having had any prior business operations within the SEZ for at least one year before making the investment.

There are also restrictions on the sale or transfer of shares or partnership interests in SEZ businesses.

Please note that this article is for information prposes only and does not constitute legal advice

As part of its continued strategy to become a regional leader in digital finance, Thailand continues to develop and improve its regulatory framework for digital assets.

Recent developments from the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC), such as adding USDT and USDC to the approved list of cryptocurrencies, create new opportunities for foreign companies to enter the Thai market.

To further test and expand the use of digital assets, Thailand has established two regulatory sandboxes. These are administered separately by different authorities. The sandbox overseen by the BOT focuses on innovations in payments and financial infrastructure, while the SEC oversees activities in the digital asset market, including trading platforms and token issuance.

Key Points

• Thailand has established regulatory sandbox frameworks through the BOT and SEC that allow both domestic and foreign companies to test digital asset innovations in a controlled environment with formal oversight.
• Foreign fintech companies can participate in these sandboxes to enter Southeast Asian markets with reduced risk, collaborate with local companies and initiatives, test new financial models, and access early advantages in Thailand’s digital finance ecosystem.
• The Thailand Board of Investment (BOI) offers significant benefits for fintech companies including corporate tax exemptions for up to 8 years, permission for 100% foreign ownership, and streamlined visa processes.
• BOI-promoted fintech categories include digital payments, P2P lending platforms, blockchain technology applications, and insurtech solutions, all aligned with Thailand’s digital economy goals.
• Thailand presents an attractive market for fintech development due to high digital adoption rates, widespread mobile payment usage, and cryptocurrency acceptance.

A Favorable Climate for Crypto Innovation

While the United States, under the Trump administration, maintains a supportive stance toward crypto, Thailand is taking a more structured and proactive approach. Through the creation of the regulatory sandbox frameworks by the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC), Thailand is creating a controlled environment for both domestic and foreign firms to test and develop digital asset innovations. These programs allow companies to test and develop ideas while being under formal regulatory oversight.

Regulatory Sandbox Frameworks: BOT and SEC

To further test and develop the acceptance and possibilities of the use of Digital Assets in Thailand, two separate programs, known as sandboxes have been created. 

These regulatory sandboxes are structured around two primary frameworks, each administered by a separate authority. The Bank of Thailand (BOT) oversees innovations related to payments and financial infrastructure, while the Securities and Exchange Commission (SEC) supervises activities tied to digital asset markets, such as trading platforms and token issuance. 

The Bank of Thailand’s Enhanced Regulatory Sandbox

The Bank of Thailand’s Enhanced Regulatory Sandbox, introduced in June 2024, permits both licensed and non-licensed entities to pilot financial innovations. Projects must be limited in scope, operate within a defined time frame (typically under one year), and include a clear exit strategy. 

Participants must also engage in pre consultation with the BOT, particularly if stablecoins are involved, due to their complex legal classification under the Currency Act B.E. 2501 and the Payment Systems Act B.E. 2560.

This sandbox is focusing on technologies like:

• Global stablecoin exchanges: Facilitating international crypto transactions with stable value.
• Programmable payments: Transactions executed automatically when predefined conditions are met.
• Asset tokenization: Converting rights to an asset into a digital token.

SEC Sandbox for Digital Asset Businesses

The Thai SEC launched a regulatory sandbox in August 2024, specifically for digital asset businesses. This sandbox caters to a wide range of services including:

• Cryptocurrency trading platforms
• Investment advisory and fund management
• Tourist crypto wallets
• Programmable payments using digital assets

To participate, applicants must demonstrate that their innovations are research-backed, align with Thailand’s capital market goals, and contribute to financial service development. 

Although the sandbox allows certain activities without a license, core services like issuing investment or utility tokens still require SEC approval, unless the tokens are on the regulator’s approved list (e.g., BTC, ETH, USDT, USDC).

Why Foreign Companies Can Benefit from these Sandboxes

For foreign fintech and blockchain companies, these sandbox programs represent an opportunity to:

• Enter the Southeast Asian market with controlled risk and regulatory support
• Collaborate with local financial institutions and regulators
• Test new financial models in a real-world environment with legal flexibility
• Gain early mover advantage in a growing digital asset ecosystem

The controlled, consultative nature of the sandbox framework also limits legal exposure during the testing phase, making it an attractive option for companies exploring cross-border use cases, decentralized finance (DeFi) applications, or digital payment infrastructure.

However, to be eligible for participation in these sandboxes, companies must demonstrate strong technological readiness, legal compliance, and risk management capabilities.

With these pilot programs already in motion and more set to launch throughout 2025, Thailand’s regulatory sandboxes are becoming a key tool for developing Thailand’s Digital Asset readiness while also encouraging innovation and attracting global investment. Foreign companies exploring fintech, blockchain, and digital payment solutions should consider Thailand not only as a testing ground but as a gateway to the wider Asian digital economy.

Other Opportunities for Fintech Companies in Thailand

Thailand’s commitment to developing a leading digital economy goes beyond just the sandbox initiatives. For foreign fintech companies looking to establish a long-term presence in Thailand, the Thailand Board of Investment (BOI) offers a range of benefits and incentives.

Under Category 5, which covers software, digital services, and fintech innovations. These incentives are designed to encourage technological development, attract foreign direct investment, and position Thailand as a regional hub for financial innovation.

Eligible Fintech Business Activities for a BOI Promotion

Foreign companies operating in, or considering the fintech sector in Thailand may be eligible for BOI promotion if their activities fall under the approved business categories. These include:

Software Industries

• Embedded or High Value-Added Software: This includes systems integrated into hardware for specialized functions, such as IoT devices or real-time analytics tools.
• Enterprise Software and/or Digital Content: Solutions like SaaS platforms, enterprise resource planning (ERP) tools, and business intelligence applications are included in this category.

Digital Services (Including Fintech)

This broad category includes a wide range of technology based services, including platform development, digital architecture, cloud-based operations, and industry-specific fintech solutions such as:

• Insurtech: Technology-driven insurance platforms and solutions.
• Regtech: Tools that simplify compliance and regulatory reporting.
• Medtech: Digital platforms for healthcare payments or diagnostics.
• Agritech: Financial technologies tailored for the agricultural sector.

Examples of Promoted Business Categories within the Fintech Sector

The BOI has identified several high-potential fintech sub-sectors that qualify for promotion:

• Digital Payments and E-Wallets: These platforms are considered key to Thailand’s push toward a cashless society. The BOI promotes businesses offering secure and accessible digital payment solutions.
• Peer-to-Peer (P2P) Lending Platforms: Online lending platforms that connect borrowers and lenders directly are supported for their role in improving access to finance.
• Blockchain Technology: Companies utilizing blockchain for smart contracts, secure transactions, identity verification, or supply chain transparency are highly encouraged under BOI policies.
• Insurtech: Startups and enterprises that bring digital transformation to the insurance industry are eligible for incentives.

Read ALso : Guide: LTR Visa for Highly Skilled Professionals in Thailand

Benefits of the BOI for Fintech Companies in Thailand

By obtaining a BOI promotion, fintech companies gain access to a range of benefits that make establishing and operating a business in Thailand significantly more streamlined and efficient compared to regular company structures.

BOI Tax Incentives

• Exemption from corporate income tax for up to 8 years
• Tax exemption on dividends earned during the tax holiday
• Carry forward of losses for up to 5 years, to be used after the tax exemption period

BOI General Business Benefits

• 100% Foreign Ownership: Unlike most Thai Limited Companies, BOI promoted projects can be entirely foreign owned.
• Foreign Business Certificate (FBC): The FBC exempts BOI companies from the restrictions established in the Foreign Business Act, allowing greater freedom in business operations.
• No Thai-to-Foreigner Employee Ratio: BOI companies are not subject to the 4:1 Thai-to-foreigner staff requirement, allowing them to hire foreign specialists without quota limitations.
• Streamlined Visa and Work Permit Process: Foreign staff benefit from simplified visa and work permit applications through the BOI’s One Stop Service Center in Bangkok.

Read Also : https://lexnovapartners.com/boi-incentives-for-renewable-energy-thailand/

Our Thoughts

Thailand is an increasingly attractive destination for fintech companies, thanks to a supportive regulatory environment, proactive government initiatives, and strong digital adoption rates. 

The regulatory sandboxes have created a safe space for fintech innovation. The Board of Investment (BOI) also offers substantial incentives, including tax exemptions and visa support for foreign talent, which makes market entry and operations easier for fintech firms. 

The “Digital Thailand” initiative aligns government support with digital transformation, emphasizing fintech as a key area of economic growth.

Thailand is also highly engaged in digital finance, with high smartphone usage and widespread use of mobile payments like PromptPay and TrueMoney. Thailand ranks among the world’s top adopters of cryptocurrency, supported by clear regulations from the Securities and Exchange Commission (SEC) for digital assets and exchanges.

FAQs

Please note that this article is for information purposes only and does not constitute legal advice