BOI latest policy: SMEs upgrading to “smart factories”，up to 5 years of tax exemption available

this measure focuses on “efficiency enhancement,” and enterprises can benefit from the following key supports: 

1. corporate income tax incentives: eligible for corporate income tax (CIT) exemption for up to 5 years, with a maximum exemption amount of up to 100% of the investment value 

2. import duty exemption on machinery: machinery used for project upgrades is eligible for import duty exemption

enterprises may choose one or multiple directions for upgrading based on their own needs: equipment upgrades and automation systems,

• digital technology applications (such as ERP and MES systems)

• industry 4.0 transformation

• energy efficiency improvement and environmental optimization

• upgrading to international sustainability standards

• transitioning into new industries.

this means that the policy is not just about “purchasing machinery,” but a comprehensive tool to enhance overall business competitiveness

enterprises must meet the following basic requirements: 

• Thai individual shareholders hold at least 51% of shares

• Thai nationals constitute the majority of authorized directors

• annual revenue over the past 3 years does not exceed THB 500 million

• the company has registered for an SME One ID

• the investment amount is at least THB 500,000 (excluding land and working capital)

this policy applies only to existing operating companies undertaking upgrades and improvements
not applicable to:
newly established companies (greenfield projects)
at the same time, it should be noted that:
if a company has previously received BOI tax incentives, it may only reapply after the original tax exemption period has expired
or if the original project did not receive corporate income tax incentives
in essence, this represents a “second-round upgrade incentive” for enterprises

implementation requirements:
after approval is granted, the company must complete the investment and implementation within 3 years

which companies are most suitable to apply?
based on practical cases, the following types of companies are a strong fit:
companies already operating in Thailand and planning to improve production efficiency
businesses facing rising labor costs and considering automation
companies undergoing digital transformation
enterprises with needs for energy efficiency or environmental upgrades
companies aiming to optimize profit structure and enhance competitiveness

practical advice (very important)
based on our experience, many companies are not “ineligible,” but rather:
❌ lack upfront investment structure planning
❌ fail to align BOI strategy with tax and financial planning
❌ choose incorrect application pathways
the key to BOI is not just the “application,” but the overall project structuring and strategy design