Notification regarding software development, digital platform, and digital content companies

The Board of Investment (BOI) recently issued Notification No. Sor. 2/2567 (“the Notification”), which amends Notification No. Por. 9/2565, in order for a digital and software development company to be able to begin conducting business quickly. The Notification is effective from 15 March 2024 onwards.

Keywords: Mazars, Thailand, BOI, digital, software, investment incentives, criteria

The Notification sets out new criteria and qualifications for applying for investment incentives for a digital and software business:

The investment capital required is THB 1.5 million a year. This is based on salary expenses for Thai IT staff members hired after the date on which the application is filed and / or salary expenses for hiring temporary Thai IT staff.
The cap on the exemption from corporate income tax is based on salary expenses for Thai IT staff members and temporary Thai IT staff.
Such a company receiving investment incentives must start full operations within 12 months of the date that the BOI issues the investment incentives certificate. The deadline for starting full operations cannot be extended.
Such a company receiving investment incentives cannot request an extension of the deadline for importing machinery to be used in the business.

The Notification also sets out a new sub-category for such companies. Some key criteria and conditions are as follows:

Activities	Key criteria and conditions
8.1.2 Software, digital platform, and digital content improvement business	1. The required investment capital is THB 1.5 million a year. This is based on the salary expenses for Thai IT staff members hired after the date on which the application is filed and / or salary expenses for hiring temporary Thai IT staff.
	2. The applicant must provide an improvement plan for software development, a digital platform, or digital content, as stipulated by the BOI.
	3. Such a company receiving investment incentives can utilize used machinery in its business.
	4. Such a company receiving investment incentives must start full operations within 12 months of the date that the BOI issues the investment incentives certificate. The deadline for starting full operations cannot be extended.
	5. Such a company receiving investment incentives cannot request an extension of the deadline for importing machinery to be used in the business.
	6. Such a company receiving investment incentives cannot own the land on which it operates its business.

Reference (in Thai): Announcement of the Board of Investment No. Sor 2/2567