Case Study: 6.4 Million THB Saved with BOI

Let's walk through a real scenario showing exactly how much a tech startup saved with BOI promotion.

 

The Company

Profile:

• Software development company (Category 5.8)
• Founded: 2024
• BOI approved: 2024
• First revenue: January 2025
• Ownership: 100% foreign (via BOI)

 

Revenue Growth Trajectory

| Year | Annual Revenue | Net Profit | Profit Margin | |------|----------------|------------|---------------| | 2025 | 5,000,000 | 1,000,000 | 20% | | 2026 | 8,000,000 | 2,000,000 | 25% | | 2027 | 12,000,000 | 3,200,000 | 27% | | 2028 | 15,000,000 | 4,000,000 | 27% | | 2029 | 18,000,000 | 5,000,000 | 28% | | 2030 | 20,000,000 | 5,600,000 | 28% | | 2031 | 22,000,000 | 6,200,000 | 28% | | 2032 | 24,000,000 | 6,800,000 | 28% |

Total 8-year profit: 33,800,000 THB

 

Tax Comparison

Scenario A: Without BOI (Standard 20% CIT)

| Year | Net Profit | Tax (20%) | |------|------------|-----------| | 2025 | 1,000,000 | 200,000 | | 2026 | 2,000,000 | 400,000 | | 2027 | 3,200,000 | 640,000 | | 2028 | 4,000,000 | 800,000 | | 2029 | 5,000,000 | 1,000,000 | | 2030 | 5,600,000 | 1,120,000 | | 2031 | 6,200,000 | 1,240,000 | | 2032 | 6,800,000 | 1,360,000 |

Total tax paid: 6,760,000 THB

 

Scenario B: With BOI (0% CIT for 8 years)

| Year | Net Profit | Tax (0%) | |------|------------|----------| | 2025-2032 | 33,800,000 | 0 |

Total tax paid: 0 THB

 

The Savings

Tax saved: 6,760,000 THB (~$188,000 USD)

Effective benefit: The company kept an extra 6.76 million THB to:

• Hire 11 additional developers (at 50K/month for 8 years)
• Invest in R&D and product development
• Build cash reserves
• Expand to new markets

 

Additional BOI Benefits

Beyond tax savings, the company also gained:

1. Work Permit Advantages

• No 4:1 ratio: Hired 5 foreign developers without needing 20 Thai staff
• Saved: ~1.2M THB/year in unnecessary Thai salaries
• 8-year savings: 9.6M THB

2. Faster Work Permits

• 1-day processing at One-Stop Service
• Onboarded foreign talent immediately
• Value: Faster time-to-market, competitive advantage

3. 100% Foreign Ownership

• No Thai shareholders needed
• Full control of company
• Easier exit/sale strategy

 

Total Economic Benefit

Direct tax savings: 6.76M THB Avoided 4:1 ratio costs: 9.6M THB Total 8-year benefit: 16.36M THB

 

The Investment Required

BOI Application Costs

• Lawyer fees: 150,000 THB
• Documentation: 50,000 THB
• Total: 200,000 THB

Annual Compliance

• BOI reporting: 30,000 THB/year
• 8-year total: 240,000 THB

Total BOI investment: 440,000 THB

 

ROI Calculation

Total benefit: 16,360,000 THB Total cost: 440,000 THB Net benefit: 15,920,000 THB

ROI: 3,618% over 8 years

Payback period: 3 months (tax savings in Q1 2025 exceeded application cost)

 

Key Success Factors

1. Early Application

Applied for BOI before starting revenue, maximizing the 8-year period.

 

2. Proper Activity Classification

Ensured all revenue qualified as "promoted activities" (software development).

 

3. Compliance Excellence

Filed all BOI reports on time, maintained proper records, never risked losing benefits.

 

4. Strategic Reinvestment

Used tax savings to hire top talent, accelerating growth and compounding benefits.

 

Lessons for Your Business

If You're Eligible for BOI:

The application cost (200-400K THB) is trivial compared to potential savings.

 

If You're Already Operating:

It's not too late—you can still apply for BOI and start the exemption from your next revenue period.

 

If You're Planning:

Structure your business for BOI eligibility from day one. The long-term benefits are enormous.

 

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Related Service: BOI Promotion & Investment Incentives — Start your BOI journey and unlock millions in tax savings.