Thailand’s Board of Investment (BOI) has long been a magnet for foreign investors, but 2025 brings even more targeted incentives for the tech sector. With the global push toward digital transformation, Thailand is positioning itself as a hub for IT and software companies. According to the BOI’s Investment Promotion Guide 2025, the focus is on activity-based promotions that emphasize innovation in areas like software development, digital platforms, and AI.
If you’re a tech founder eyeing expansion, understanding these incentives can slash costs and accelerate growth. Let’s dive into the key updates and how you can capitalize on them.
What’s New in BOI Incentives for 2025?
The BOI rolled out a comprehensive package in May 2025, aimed at enhancing competitiveness amid global challenges like US tariffs and the global minimum tax. For IT and software firms, this means:
- Activity-Focused Promotions: Incentives are now tied to the “importance” of activities, such as developing custom software or AI-driven solutions, rather than broad categories.
- SME Support: New tax breaks for small and medium enterprises in tech, including those in EV and electronics supply chains, to keep production local.
- Land Ownership Changes: Effective September 2025, restrictions on land privileges ensure sustainable investments, but BOI-promoted firms still enjoy exemptions.
These updates build on Thailand’s attractiveness, with over 1,000 BOI-promoted projects in digital services approved in recent years.
Core Benefits for Software and IT Companies
BOI promotion isn’t just about tax perks, it’s a full ecosystem boost. Here’s what you get:
- Tax Exemptions: Up to 8 years of corporate income tax holiday, plus duty exemptions on imported equipment and raw materials.
- 100% Foreign Ownership: Bypass the usual 49% foreign equity limit in restricted sectors like IT, allowing full control over your operations and IP.
- Visa and Work Permits: Fast-track approvals for foreign experts, making it easier to build hybrid teams with global talent.
- Talent Access: Tap into Bangkok’s growing pool of engineers, with costs 40-60% lower than in Europe or the US.
For example, software businesses in digital content creation or platform development qualify under Category 5.2, offering maximum incentives for high-value activities.
How to Get Started with BOI Promotion
Navigating the process might seem daunting, but with the right partner, it’s straightforward. Start by assessing your eligibility, focus on activities like custom software development or AI automation.
At DBot Software, we’ve helped numerous founders set up BOI-promoted entities. Check out our Thailand BOI Spin-Off Setup service for end-to-end support, from application to team building.
Real-World Impact: Case Studies from 2025
One European fintech firm reduced operating costs by 50% after BOI approval, reinvesting in R&D. Similarly, a US startup scaled its APAC presence in under 12 weeks, leveraging duty-free imports for tech infrastructure.
In a volatile global economy, these incentives provide stability. As the BOI adapts to challenges like the global minimum tax, tech companies stand to gain the most.
Ready to explore? Thailand’s BOI could be your gateway to Southeast Asia’s booming tech scene.
