Thailand continues to strengthen its position as a regional hub for digital technology and innovation. To support this growth, the Board of Investment (BOI) offers a comprehensive package of incentives to attract companies developing software, digital platforms, and digital content within the country.
Under the latest Investment Promotion Guide 2025, this activity is classified as:
Activity 8.1.1 — Development of Software, Digital Platform, or Digital Content
Category A2 | Digital Industry
This category is designed to promote technological development, innovation, and employment of Thai IT talent, while allowing foreign investors to operate in Thailand with confidence and flexibility.
1. Why BOI Promotion Matters for Software Companies
The BOI promotion is more than a tax incentive, it is a strategic advantage that enables software companies to scale faster, operate legally under full foreign ownership, and attract global talent.
Thailand’s technology sector is expanding rapidly. With government support, improving digital infrastructure, and competitive operational costs, many startups and established enterprises are choosing Thailand as their Southeast Asian base.
For software developers, SaaS providers, and platform operators, BOI promotion offers tangible benefits: corporate income tax exemptions, simplified immigration processes, and reduced compliance barriers. These privileges significantly reduce operating costs and support sustainable growth.
2. Key Incentives under BOI Activity 8.1.1
Corporate Income Tax (CIT) Exemption
BOI-promoted companies under Activity 8.1.1 enjoy up to eight (8) years of corporate income tax exemption, with the cap determined annually based on actual qualifying expenditures.
Eligible expenses include:
- Salaries of Thai information technology personnel hired after the BOI application.
- Costs of training programs aimed at developing Thai IT professionals.
- Expenses for acquiring international software quality certifications such as ISO 29110 or CMMI Level 2 and above.
This structure rewards companies that invest in Thai talent and contribute to the country’s technological ecosystem.
For many businesses, the tax savings can be reinvested into expanding teams, developing new products, or entering new markets.
100% Foreign Ownership
BOI-promoted entities are allowed to operate with 100% foreign ownership, a significant privilege not typically available under Thailand’s Foreign Business Act.
This means:
- No requirement for Thai majority shareholders.
- Full control over corporate structure and management.
- Complete ownership of intellectual property (IP) and assets.
For foreign founders and technology investors, this simplifies long-term planning and eliminates the risks associated with nominee shareholders or complex ownership arrangements.
Visa and Work Permit Process
BOI companies benefit from Thailand’s One Stop Service Center (OSOS) for visa and work permit applications.
This allows companies to:
- Process visa and work permit applications quickly (often within 3–7 business days).
- Hire foreign experts without the standard 4:1 Thai-to-foreign employee ratio.
- Bring in key personnel such as CTOs, engineers, or data specialists with fewer restrictions.
This flexibility helps software firms attract the right talent globally, supporting innovation and growth.
Import Duty Exemptions
Although software businesses are not heavy importers of physical goods, BOI still provides import duty exemptions for:
- New computer hardware and equipment essential for development.
- R&D or testing machinery, such as servers, workstations, and networking systems.
These exemptions help reduce initial setup costs and encourage reinvestment in technology infrastructure.
3. Eligibility Criteria for BOI Activity 8.1.1
To qualify for promotion under Activity 8.1.1, companies must meet specific measurable criteria established by the BOI:
a) Project Scope
Your company must engage in software development, digital platform creation, or digital content production in Thailand.
Eligible business models include:
- SaaS or subscription-based software services.
- Business and enterprise software solutions.
- Mobile or web application development.
- Gaming, AR/VR, and interactive media.
- Cloud-based systems or marketplace platforms.
The project must involve actual software development within Thailand — not just marketing, sales, or outsourcing activities abroad.
b) Minimum Investment Requirement
The company must invest at least 1.5 million THB per year, calculated based on the salaries of Thai information technology personnel employed after applying for BOI promotion.
Practically, this means:
- Hiring at least two to three qualified Thai IT staff such as developers, system analysts, or designers.
- Providing valid employment contracts, payroll records, and academic qualifications to demonstrate compliance.
This condition ensures that BOI-promoted projects actively contribute to local employment and skill development.
c) Equipment and Technology
BOI requires the use of new computer hardware and software tools that align with the project’s size and scope.
Second-hand or outdated equipment is not eligible for incentive claims.
Companies must maintain an updated inventory and provide purchase receipts when requested.
d) Operation Timeline
Projects must commence full operations within 12 months from the issuance of the BOI promotion certificate.
Extensions for project completion or machinery importation will not be granted.
e) Documentation Standards
Applicants must submit comprehensive documentation covering:
- Project background and objectives.
- Software or platform architecture and development process.
- Technologies, frameworks, and programming tools used.
- Organizational structure and key personnel.
Clear, detailed documentation demonstrates that the company conducts legitimate software development activities within Thailand.
4. Non-Eligible Activities
BOI incentives under Activity 8.1.1 do not apply to:
- Retail or wholesale sales of products (including online sales).
- E-commerce operators whose main income comes from buying and selling goods.
- Service-only operations without in-house software development.
However, if your company develops e-commerce systems or SaaS platforms that enable others to operate online, those activities can still qualify.
5. Benefits Beyond Tax Savings
BOI promotion provides more than financial incentives. It enhances corporate credibility and long-term stability in Thailand’s digital market.
Strategic Advantages:
- Recognition as a BOI-promoted company, increasing trust among partners and investors.
- Simplified access to government agencies and support programs.
- Ability to expand into regional markets from a Thailand base.
- Improved chances of obtaining foreign expert visas and future BOI renewals for additional projects.
These benefits make BOI promotion a cornerstone for any serious technology business planning long-term operations in Thailand.
6. Application Process Overview
While the BOI application process can be technical, a well-prepared submission can be completed within a few months.
Typical stages include:
- Preliminary Consultation: Evaluate eligibility based on your business model.
- Document Preparation: Draft project plan, team structure, and financial projections.
- BOI Submission: Apply online via the BOI e-Investment platform.
- Interview with BOI Officers: Present your project’s scope, development plan, and technology usage.
- Approval and Certificate Issuance: Once approved, the BOI certificate outlines your rights and privileges.
- Post-Approval Compliance: Maintain reporting standards and renew annual documentation.
Working with an experienced consulting partner ensures accuracy and smooth communication throughout these steps.
Why Choose Act & Align Advisor
At Act & Align Advisor, we help foreign entrepreneurs and technology-driven companies establish, promote, and expand their businesses in Thailand.
Our expertise covers every stage of the BOI process:
- Company registration and structure planning.
- BOI eligibility review and document preparation.
- Application and interview coordination with BOI officers.
- Post-approval compliance and visa/work permit services.
We understand the complexities of Thai regulations and are dedicated to guiding your business every step of the way with clarity and integrity.
Whether you are launching a new startup, expanding your development hub, or relocating your digital team to Thailand, our goal is to make the process transparent, compliant, and efficient.
