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

March 20, 2026

Thailand Ties Data Center Tax Breaks to Workforce and Supply Chain Development

Subscribe to Updates

Thailand’s Board of Investment (BOI) now requires data center projects to demonstrate measurable benefits for local workforce development, R&D, SME capability, and domestic supply chains to qualify for corporate income tax (CIT) exemptions. BOI Notification No. Por. 3/2569, issued on February 6, 2026, updates the requirements for projects seeking promotion under BOI category 8.2.1 (data centers).

All data center projects must now submit and implement plans covering development of Thai human resources and domestic supply chain support before benefiting from any CIT exemption.

Human Resources Development Plan

The BOI seeks to promote local talent development beyond basic training. Plans must include the following elements:

  • Training for data center design, construction, and operations targeting vocational students, engineering and ICT undergraduates and postgraduates, and energy and building personnel in Thailand.
  • Joint curricula with Thai universities and technical institutes.
  • Collaborative R&D with Thai nationals or institutions in areas including AI, resource allocation, high-performance computing, and data center hardware and systems.
  • Thai SME upskilling in electrical and energy systems and IT services.

Domestic Supply Chain Support Plan

Plans must demonstrate knowledge transfer in design, construction, cooling, security, and power and water management. Projects must also include usage or installation of domestically manufactured equipment or engage specialist domestic entities.

Criteria for BOI Evaluation

The BOI will assess data center operators’ eligibility for CIT incentives based on two criteria:

  • Scale requirement: Training and joint-curriculum initiatives must reach a total participants equal to at least 10 times the project headcount and run for the duration of the CIT incentive. If this threshold is not met, the applicant must also implement continuous R&D or SME skills-development plans throughout the incentive period.
  • Substantiality test: Supply-chain plans must be substantive, meet industry standards, and show measurable development of the domestic digital and data center supply base.

To ensure compliance, the BOI will conduct two-stage verification. Before using CIT exemptions, applicants must provide evidence of binding commitments, such as agreements with educational institutions or agencies. At full project startup, the BOI will cross-check plans against the BOI application, including any amendments, financial statements, accounting records, and partner confirmation letters.

Outlook

The BOI now ties incentives to measurable local impact. Projects must commit to sustained investment in Thai talent, R&D, and domestic suppliers. Investors should integrate these requirements into project planning from the start to secure and fully benefit from BOI tax incentives.

Related Professionals

Industries

Technology

Practices

Corporate/M&A

Location

RELATED INSIGHTS​ 

January 9, 2024
As of January 1, 2024, all films distributed in cyberspace in Vietnam must display ratings and warnings (if required) for viewers, following the phased-in effectiveness of Decree No. 131/2022/ND-CP of the Government dated December 31, 2022, guiding the implementation of the Law on Cinematography (Decree 131). While Decree 131 took effect on January 1, 2023 (the same date as the Law on Cinematography), it provided a grace period of one year for films to be distributed in cyberspace without the display of ratings or warnings. Now, for continued distribution in cyberspace of such films, distributors must add ratings and warnings in compliance with regulations issued under Circular No. 05/2023/TT-BVHTTDL of the Ministry of Culture, Sports and Tourism (MOCST) dated April 5, 2023 (Circular 05). Film Rating Film distributors can either carry out the film rating by themselves or request the MOCST to provide the rating. In the former case, the distributor must request the MOCST to recognize its eligibility for self-rating. (Based on our experience successfully obtaining this recognition for a client, this procedure may take about two to three months for completion, depending on the availability of required information and materials.) If a distributor cannot obtain recognition for film self-rating eligibility, it must request the MOCST to provide the film rating for each and every film it distributes in cyberspace. Display of Ratings and Warnings Circular 05 requires that the film rating must be displayed clearly and prominently in the introduction of a film in order for a user to make an informed decision to access that film or not. Moreover, the rating must be displayed on the left or right corner of the screen during the entire distribution time. Warning contents must be in words or sound which must be displayed three seconds after the beginning of
Read More
January 4, 2024
On December 25, 2023, Thailand’s Personal Data Protection Committee (PDPC) issued two notifications under sections 28 and 29 of the Personal Data Protection Act 2019 (PDPA) that address essential aspects and criteria for the cross-border transfer of personal data. These notifications are scheduled to come into effect on March 24, 2024. Key points in the notifications are outlined below. Adequate Data Protection Standards (Section 28) Unless otherwise provided by the PDPA, the destination country or international organization that receives the transferred personal data must have “adequate data protection standards,” as determined by the following factors: Legal measures and mechanisms. The destination country or international organization must have legal measures or mechanisms aligned with the personal data protection laws in Thailand. Specifically, the obligations of data controllers need to include providing appropriate security measures, implementing personal data protection measures that are suitable and that enable the exercise of data subjects’ rights, and establishing effective legal remedial measures. Regulatory authority. The presence of an agency or organization entrusted with the duties and authority to enforce laws and regulations related to personal data protection is also a critical factor. In addition, this notification empowers the Office of the PDPC to refer cases, either independently identified or proposed by a data controller, to the PDPC for adjudication. The PDPC retains the discretion to make decisions on a case-by-case basis or to establish a list of destination countries or international organizations that it considers to have adequate data protection standards. Binding Corporate Rules and Appropriate Safeguards (Section 29): In the realm of global data exchange, two prominent mechanisms have emerged as key enablers of secure and compliant transfer of personal data: Binding corporate rules (BCRs). Implementation of BCRs involves enforcing an approved policy for safeguarding personal data transferred among affiliated businesses or within the
Read More
January 2, 2024
Myanmar’s Ministry of Commerce (MOC) has released updated information regarding the registration fees for online retail businesses. The fees and criteria, which are included in the MOC’s Export/Import Newsletter No. 17/2023 dated December 28, 2023, are laid out below. Registration Fees The official registration fees vary depending on the applicant type: Companies or other commercial organizations: MMK 70,000 (approx. USD 33.5) for registration and renewal; MMK 3,000 (approx. USD 1.5) for each amendment. Small and medium enterprises (SMEs): MMK 50,000 (approx. USD 24) for registration and renewal; MMK 3,000 (approx. USD 1.5) for each amendment. Individual applicants: 30,000 MMK (approx. USD 14.5) for registration and renewal; MMK 3,000 (approx. USD 1.5) for each amendment. Validity Period Registrations approved from January 1, 2024, will be valid for two years from the date of grant. The requirement for online retail businesses to register their operations was announced in July 2023. Based on statements from the MOC, online retail businesses need to complete their registration by late January 2024 to avoid potential enforcement actions. Regarding SMEs, the MOC will also evaluate their SME registration certificate issued by the Agency Office under the Small and Medium Enterprises Development Law 2015. For assistance completing the registration process, or for more details on any aspect of online retail operations in Myanmar, contact Tilleke & Gibbins at [email protected].
Read More
December 15, 2023
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.
Read More