BOI Benefits: Tax Exemptions Explained
The tax benefits of BOI promotion are substantial—we're talking about potential savings of 6-8 million THB or more over the promotion period. Here's exactly how it works.
Corporate Income Tax Exemption
The headline benefit: 0% corporate income tax for up to 8 years.
Without BOI, Thai companies pay 20% tax on net profits. With BOI, that drops to zero for promoted activities.
Real Calculation Example
Let's say your software company earns 10 million THB annual profit:
Without BOI:
- Year 1-8: 10M × 20% = 2M THB tax per year
- Total tax: 16 million THB
With BOI:
- Year 1-8: 10M × 0% = 0 THB tax per year
- Total tax: 0 THB
Savings: 16 million THB over 8 years
Additional Tax Deductions
Beyond the exemption, BOI offers:
Training Expenses
Deduct 200% of training costs for Thai employees. If you spend 100,000 THB on training, you deduct 200,000 THB.
R&D Expenses
Deduct 200% of qualified research and development costs.
Infrastructure Investment
Deduct 25% of installation costs for facilities in promoted zones.
Import Duty Exemption
Import machinery, equipment, and raw materials at 0% duty. For manufacturing companies, this can mean hundreds of thousands in savings.
The Catch
These benefits apply only to promoted activities. If you earn revenue from non-promoted activities, that portion is taxed normally.
Good record-keeping is essential to maximize your benefits.
Related Service: BOI Promotion & Investment Incentives — Maximize your tax savings with proper BOI structuring.
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