New BOI-related merit-based incentives related to R&D

Based on resolutions passed by the Board of Investment (BOI) on 30 June 2021, the BOI will offer an additional unlimited tax holiday for up to 5 years for projects investing in research and development.

Keywords: Mazars, Thailand, Legal, BOI, R&D, SMEs, Tax holiday

10 September 2021

The key criteria and incentives are as follows:

	Minimum investment and expenses for R&D only		Additional tax holiday
	General	SMEs	Additional tax holiday
	At least 1% of total sales over the first three years, or at least THB 200 million	At least 0.5% of total sales over the first three years	1 year
	At least 2% of total sales over the first three years, or at least THB 400	At least 1% of total sales over the first three years	2 years
	At least 3% of total sales over the first three years, or at least THB 600 million	At least 1.5% of total sales over the first three years	3 years
New	At least 4% of total sales over the first three years, or at least THB 800 million	At least 2% of total sales over the first three years	4 years
New	At least 5% of total sales over the first three years, or at least THB 1 billion	At least 2.5% of total sales over the first three years	5 years
Notes: The total tax holiday cannot exceed 13 years. Where R&D is one of the activities of the project, the entrepreneur must invest more than the minimum amounts listed to receive the additional incentives mentioned above.

If the amount of the investment and expenses for a project does not meet the minimum amounts set out above, the project will still be entitled to a corporate income tax holiday in proportion to the amount of the investment and expenses.

Reference: Board of Investment