Thailand’s Board of Investment (BOI) has rolled out new regulations and promotions in 2024 to support the growth of digital businesses. These initiatives align with the country’s broader economic strategy to position itself as a hub for innovation and technology in Southeast Asia.

Expanding Digital Industry Support
The BOI continues to offer significant tax incentives to attract more digital businesses. Companies involved in software development, digital services platforms, and digital content creation can benefit from corporate income tax (CIT) exemptions. These incentives apply to various revenue streams, including licensing fees, subscription models, in-app purchases, and more. By easing the tax burden, the BOI aims to encourage local and international companies to invest in Thailand’s burgeoning digital sector.

Promoting Data Hosting Services
A standout feature of the 2024 promotions is the inclusion of data hosting services as a priority sector. Companies that establish data centers meeting stringent criteria, such as maintaining at least two ISO/IEC 27001-certified facilities and investing a minimum of THB 5 billion, can receive an eight-year CIT exemption. This includes additional perks like import duty exemptions on essential machinery and streamlined processes for obtaining work permits and visas for foreign experts.

This move is particularly strategic as the demand for data storage and management services continues to rise globally. By incentivizing data hosting, Thailand aims to become a regional leader in this critical infrastructure, further solidifying its position in the digital economy.

Strategic Vision for a New Economy
These new regulations are part of the BOI’s comprehensive five-year strategy (2023-2027), which focuses on transitioning Thailand into a new economy driven by innovation, technology, and sustainability. The approach emphasizes the digital transformation of industries through automation, green technology, and innovative solutions. By fostering an environment that supports technological advancement, the BOI aims to attract investments and ensure that Thailand remains competitive in an increasingly digital global market.

The strategy also highlights the BOI’s evolving role from providing tax incentives to facilitating business opportunities. This includes promoting Thailand as a business center and gateway for international trade, supporting small and medium enterprises (SMEs) that connect to global supply chains, and encouraging investments that contribute to social and environmental sustainability.

Conclusion
With these new incentives, Thailand’s BOI sets the stage for a robust digital economy. If your business is in software development, digital services, or data hosting, these regulations offer a significant opportunity to expand in Thailand. To fully leverage these benefits and navigate the complexities of BOI regulations, we invite you to contact us. Our team of experts is ready to provide detailed insights and tailored solutions to help your business thrive in Thailand’s dynamic market. Reach out today to discover how we can support your growth.