Software developing companies who want to apply for Thailand BOI promotion for software, digital platform and digital content need to rethink their strategy. On 16 September 2021, the BOI announcement No. Sor 4/2564 cancelled the investment promotion of activities 5.7 (Software), 5.8 ( E-Commerce ) and 5.9 (Digital Services). Basically, all those were cancelled in order to become the newly added activity “5.10 Development of software, digital platform or digital content”.
This new eligible activity “5.10 Development of software, digital platform or digital content” offers 8 year corporate income tax exemption of not more than 100% of investment. The “investment” is calculated from the salaries of the Thai IT personnel (of the promoted project) of at least THB 1.5M per year. Yes, the Thai government wants software companies to hire more Thai IT personnel if they want to get the BOI certificate for this activity. They can still hire foreigners in the IT related positions.
The promoted companies under the activity 5.10 will further get a tax exemption amount equal to 200% of the expenses on external software development training for their Thai IT employees and on human resource development under the cooperation with education institutes. Furthermore, 100% of the expenses paid for getting certified for ISO 29110 or CMMI (Level 2 and above) shall also be calculated for tax exemption amount.