This post is about Thailand BOI promotion for software business, which is classified as one of special importance and benefit to the country. Thailand Board of Investment (BOI) grants the promoted software companies a corporate income tax exemption without a cap and other incentives.
Thailand BOI promotion for software business is granted to the following software development activities:
- Embedded software
- Enterprise software and/or digital content, which can be any one of the following:
- Animation, cartoon & character
- Computer-Generated Imagery (CGI)
- Web-based applications and cloud computing
- Interactive Application
- Games such as Windows-based, mobile platform, PDA, online games, massive multi-player online games (MMOG)
- Wireless location-based service content
- Visual effects
- Multimedia video conferencing application
- E-learning content via broadband and multimedia
- Projects must spend at least Baht 1.5 M per year on salaries of IT personnel.
- Projects must include software development processes specified by the Software Industry Promotion Agency (SIPA)
- For projects with an investment of Baht 10 M or more (excluding cost of land and working capital) must obtain a quality standard certificate from SIPA or receive a Capability Maturity Model Integration (CMMI) quality standard certificate or any equivalent standard within 2 years from the start-up dat If the project fails to meet such condition, one-year corporate income tax exemption shall be withdrawn.
- Revenues derived from sales or the provision of services that are directly related to a promoted software business shall be regarded as revenue of such promoted busines
Rights and benefits
Thailand BOI incentives to be granted are:
- 8 year corporate income tax exemption without cap for embedded software business, and 5 year (without cap) for enterprise software and/or digital content businesses.
- Exemption of import duty on machinery
- Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year, which can be extended as deemed appropriate by the Board of Investment
- Right to own land for use in the promoted activity
- Right to bring foreign specialists (thus give them work permits without the ratio of 4 Thais per foreigner or Baht 2 M capital per foreigner)
- Right to remit money abroad in foreign currencies.
- 100% foreign ownership