BOI Incentives in 2025 to Support SMEs and Boost Investment During Global Trade Challenges
- leowatanabe5
- Sep 8
- 3 min read
The BOI introduced several new policies in 2025 aimed at assisting small and medium-sized enterprises (SMEs) to reduce risks associated with U.S. tariffs and to promote high-value industries. These changes were made earlier this year by the former Deputy Prime Minister and Finance Minister to increase the competitiveness of BOI companies based in Thailand.
Key Measures Introduced by the BOI
Enhancing Efficiency of Thai SMEs Via Income Tax Exemptions
The BOI has rolled out new tax incentives to help SMEs invest in operational upgrades in areas such as machinery, automation, digital technologies, and energy conservation. The BOI has extended the corporate income tax exemption for qualifying SMEs from 3 years to 5 years and increased the exemption rate from 50% to a full 100% of the investment value for efficiency-related improvements. The BOI expects these measures to increase SME investment in innovation to accelerate the adoption of new technologies in the workforce.
Stricter Requirements for Production Process Value-Addition
To ensure that Thai-made exports comply with origin rules set by international trade agreements, the BOI is tightening the requirements for promoted projects in sensitive sectors like automotive components, electronics, and light manufacturing. These projects must demonstrate significant transformation of raw materials, including a minimum change in the Harmonized System HS code to reflect the transformation with an internationally recognised measurement system. These new conditions are designed to promote genuine industrial activity and discourage mere assembly to support Thailand’s standing in global value chains.
Revised Labor Policy for Foreign Employees in Manufacturing BOI Projects
The BOI also rolled out a revised labor policy regarding foreign employees for BOI-approved manufacturing companies with over 100 employees. Any project that hires 100 or more people needs to make sure that at least 70% of the workforce consists of Thai nationals. Foreign executives must also meet the requirement of having a minimum monthly salary of 150,000 THB, while foreign specialists must earn at least 50,000 THB to be eligible for a BOI visa and work permit. These measures aim to strike a balance between protecting the local workforce and attracting global talent. For more information, read our previous article covering this topic here.
BOI Partnerships and Investment Approvals
The BOI is actively looking into ways to boost domestic value creation and foster joint ventures between foreign and Thai companies. The BOI is currently collaborating with the Federation of Thai Industries and the Thailand Development Research Institute (TDRI) to strengthen partnerships and supply chains. It has also greenlit incentives to promote tourism investments in secondary cities by offering extended tax exemptions to stimulate development in those areas. Digital infrastructure investment is another main point of focus for the BOI in 2025. The Thai government sees investment in the digital transition as the main engine for growth in the next decade. In the first half of 2025, the BOI has received investment applications worth 522.6 billion THB in the digital sector.
What This Means for SMEs in Thailand
These measures introduced by the BOI present significant opportunities for foreign SMEs operating in Thailand under a BOI-approved project. Companies would be able to benefit from tax exemptions for efficiency improvement investments at reduced costs. Modernising machinery and investing in new efficiency tools would provide such BOI companies a step ahead when competing in uncertain international markets affected by steep and unpredictable tariffs.
BOI companies would also need to make sure that they comply with the new standards related to workforce quotas and minimum salary requirements. Companies in the manufacturing sector would need to make sure that the threshold for significant transformation of raw materials is being respected to continue receiving the benefits under the BOI scheme.
At Bizwings, we have BOI accounting and corporate secretary experts who make sure you comply with the BOI´s requirements at all times. Our regulatory monitoring makes sure that our clients have clarity on compliance requirements throughout their engagement with us. Reach out to our team to discover how we can assist with your BOI-related inquiries in Thailand.