You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 18, 2019

Thailand Launches New Incentives Package to Boost Investment

Subscribe to Updates

On September 6, 2019, Thailand’s economic ministers endorsed a new investment promotion package recommended by the Board of Investment (BOI) to enhance the country’s ability to attract foreign investment and encourage foreign investors seeking to relocate operations in order to escape the impact of the ongoing US-China trade war. 

The “Thailand Plus” campaign covers four main investment-related areas:

  1. Tax incentives. There will be an additional five-year, 50% reduction of corporate income tax (CIT) for investment projects that have an actual value of at least THB 1 billion by December 2021, and that submit an application for BOI promotion before the end of 2020.
  2. Improved regulatory efficiency. A new committee will be set up to propel and coordinate investment in Thailand—similar to the One Stop Service, and chaired by the prime minister. The committee will work to facilitate investment activity and resolve any problems that might arise. It will also empower the BOI office to approve investment projects that are not entitled to CIT benefits—regardless of project size—in order to expedite responses to demands from investors who wish to quickly relocate their investments.
  3. Manpower development. Business operators who provide training for advanced technology will be allowed to include these expenses as a tax allowance over two years (2019–2020). Similarly, business operators that hire highly skilled labor in the areas of science, technology, and advanced engineering will be able to include these related wages as deductible expenses during the same period. For BOI promoted projects for which CIT benefits are still valid, the BOI may allow training expenses relating to advanced technology to be calculated together with the cap amount for CIT exemption, possibly up to 200 percent.
  4. Developing further measures. A number of agencies have been instructed to plan additional measures:
  • The Ministry of Commerce (MOC) is instructed to review and amend the list of restricted businesses attached to the Foreign Business Act B.E. 2542 (1999), as well as other laws that restrict investment in targeted industries. The BOI and relevant agencies (such as the Department of Industrial Works, Customs Department, Department of Land, and Revenue Department) are instructed to share information to expedite investment-related procedures, including by improving visa and work permit regulations for highly skilled foreign workers.
  • The Industrial Estate Authority of Thailand is instructed to prepare land for use specifically by foreign investors who wish to relocate business operations to Thailand.
  • The MOC is further instructed to summarize their findings and the relevant steps for restarting negotiations for the Thailand-EU trade agreement, and for entering into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) within 2019. They are also instructed to request the Budget Bureau to allocate funds for compensation to businesses impacted by these free trade agreements.
  • The Ministry of Finance is instructed to support investments in automation systems with further deductions during 2019–2020.

These investment promotion measures provide a significant improvement to the ease of doing business in Thailand for foreign investors, and are likely to be of continuing interest to those affected by the economic tension between China and the US. For more information on these measures, or on any other matters related to foreign investment in Thailand, please contact Napat Siri-armart at [email protected] or +66 2056 5537.

Related Professionals

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

September 15, 2026
The Myanmar Investment Commission (MIC) has issued a notification that gives investors with projects in Myanmar clearer guidance for securing approval and for changing, expanding, or exiting an approved project. Issued on August 19, 2026, MIC Notification No. 5/2026 replaces MIC Notification No. 26/2021 and sets procedures for state or regional investment committees to review, approve, and supervise investment projects, including project amendments, investment increases, land-use rights applications, compliance inspections, and suspension or termination of approved businesses. Endorsement Application Timeline and Deemed Acceptance In Myanmar, prospective investors seeking approval under the Myanmar Investment Law generally do so through an MIC permit or an MIC endorsement, depending on the nature of the investment. While certain large-scale investment projects require an MIC permit, projects that are not required to obtain an MIC permit may instead apply for an MIC endorsement. Investors seeking MIC endorsement for their planned projects typically submit their applications to the relevant state or regional investment committee. These committees are established under the Myanmar Investment Law and are authorized to approve investments of less than USD 5 million, subject to the project’s nature and location. MIC Notification No. 5/2026 specifies that upon receiving an endorsement application, the relevant investment committee office will check it for completeness and determine whether it can be considered at the state or regional level or must be referred to the MIC; if it must be forwarded to the MIC, this will be done within 10 working days. If an application is within its purview, the committee may reject the endorsement application within 15 working days of receipt; otherwise, the application is deemed accepted. If approved, the endorsement certificate will be issued within 10 working days of the approval decision, subject to applicable procedures. Endorsement Certificate Amendment The notification clarifies which amendments a state
Read More
September 9, 2026
Certain securities, derivatives, and treasury activities in Thailand were opened to foreign investors when Thailand’s Ministry of Commerce published two new ministerial regulations in the Government Gazette on August 28, 2026. The regulations significantly broaden the service activities that foreign-owned businesses may conduct without a license or certificate under the Foreign Business Act B.E. 2542, as amended (FBA). Securities and Derivatives Business Exemptions Prior to the issuance of these ministerial regulations, the exemptions covered (1) securities brokerage and derivatives brokerage with their only underlying assets being agricultural commodities, financial instruments, and securities; and (2) dealers, advisers, and fund managers conducting derivatives business under Thailand’s derivatives laws. The ministerial regulations provide broader exemptions. In addition to derivatives under the laws on derivatives as before, the following two major categories are provided: Derivatives whose underlying assets or variables fall outside the scope of Thailand’s laws on derivatives. This addresses a gap in the previous framework, which did not comprehensively exempt derivatives tied to nonregulated underlying assets or variables, such as certain commodities. Foreign brokers, advisors, and fund managers can now facilitate a broader range of hedging and risk management instruments without triggering FBA licensing requirements. Derivatives traded outside a derivatives exchange, or over the counter (OTC), whose payments are calculated by reference to foreign exchange rates or interest rates. This removes an FBA licensing barrier for foreign providers of widely used OTC hedging products, broadening the solutions available to importers and exporters managing currency exposure and to borrowers seeking greater certainty over financing costs. The ministerial regulations also exempt brokers and agents handling transactions involving either of these two derivatives categories. For securities businesses, the ministerial regulations add exemptions for margin loans used to purchase securities and for securities repurchase transactions. These additions clarify whether such activities qualify as exempt brokerage
Read More
September 4, 2026
Foreign business restrictions on telecommunications, treasury center businesses, and intragroup support services were eased when Thailand published the Ministerial Regulation Prescribing Service Businesses Not Requiring Permission for Foreign Business Operations (No. 5) B.E. 2569 (2026) in the Government Gazette on August 28, 2026. The ministerial regulation expands the categories of service businesses that foreign investors may operate without a foreign business license (FBL) under the Foreign Business Act B.E. 2542 (1999) (FBA). Of particular relevance to the telecommunications, fintech, and technology sectors, the ministerial regulation exempts: Type 1 telecommunications licensees, which do not have their own networks; Treasury center businesses operated in accordance with Thailand’s exchange control regulations; and Certain intragroup administrative, human resources, and information technology management services. Telecommunications Services Foreign-owned businesses providing telecommunications services under a type 1 telecommunications license may now operate without obtaining an FBL. This may streamline market entry for qualifying telecommunications and digital infrastructure businesses. The exemption applies only to the FBA licensing requirement. Operators must continue to comply with applicable requirements under the Telecommunications Business Act and the regulations of the National Broadcasting and Telecommunications Commission, and the change does not affect foreign ownership restrictions applicable to type 2 or type 3 telecommunications businesses. Treasury Center Businesses The ministerial regulation also exempts qualifying treasury center businesses from the FBL requirement. This may facilitate centralized treasury functions in Thailand, including liquidity management, foreign exchange management, and intragroup funding arrangements. Treasury center operations remain subject to applicable requirements of the Bank of Thailand and other competent authorities. Intragroup Administrative, HR, and IT Services Certain administrative, human resources, and information technology management services provided between affiliated entities are also exempt, provided the relevant entities satisfy prescribed ownership or management criteria. The exemption is available where the service provider and recipient are related through specified ownership
Read More
September 1, 2026
Thailand has taken another step toward liberalizing its foreign business framework, exempting additional service activities and derivatives brokerage or agency businesses from the licensing requirements of the Foreign Business Act (FBA). Since the FBA came into effect, Thailand has taken a measured approach to opening its economy to foreign investment. While the FBA regulates foreign participation in businesses that may affect domestic interests, the framework has also evolved to allow foreign participation in certain business activities where sector-specific laws and regulatory frameworks already provide sufficient oversight, making additional FBA restrictions unnecessary. This is particularly true where Thai businesses are sufficiently capable of competing in certain service sectors, or where liberalization is intended to facilitate the provision of services among companies within the same corporate group. Against this backdrop, two new ministerial regulations have been issued pursuant to the FBA. Service Businesses Under the FBA Under the FBA, certain categories of business are restricted for foreign operators. List 3 of the FBA sets out businesses that foreigners may operate only if they obtain a foreign business license (FBL) or a foreign business certificate (FBC), or unless a specific exemption applies. List 3 (21) covers “other service businesses,” which is a catch-all provision that captures a wide range of service businesses not specifically enumerated elsewhere in the FBA. In practice, this means that most service activities carried on by foreigners in Thailand require an FBL or FBC unless otherwise exempted. Notwithstanding the foregoing, the FBA provides a mechanism to address this breadth by empowering the Minister of Commerce to issue ministerial regulations excluding specific types of service businesses from List Three (21). Once a service business is so excluded, foreigners may operate it without obtaining an FBL or FBC. Prior to the new regulations, four ministerial regulations had been issued to
Read More