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BOI STI Policy

According to the BOI Announcement No.1/2543 on Policies and criteria for investment promotion dated August 1, 2000 and the Announcement No.2/2543 on the Types, Sizes and Condition of Activities Eligible for Promotion also dated August 1,2000, the activities meeting the STI requirements will be treated as priority activities and will not be subject to any specific corporate income tax. Project meeting one of the four STI criteria will receive one additional year of corporate income tax holiday, which will no longer be subject to the cap on tax benefits, with the total available corporate income tax holidays not exceeding 8 years.

• Projects investing in Skills, Technology & Innovation
  • improve country competitveness
  • facitate the transition to a knowledge-based economy
  • eligible to receive maximum tax incentives

• Target Industries
  • Fashion industry
  • Automotive industry
  • ICT industry

STI Criteria

• R&D or design expenditures >= 1-2% of annual sales in the first 3 years
• Recruitment >= 1-5% of total workforce within the first 3 years of S&T personnel
• Training of staff >= 1% of payroll within the first 3 years
• Cost of developing vendors or supporting related educational institutes >= 1% of annual sales within the first 3 years

Projects meeting each of these criteria will receive one additional year of corporate income tax holiday (maximum 8 years), which will not be subject to the cap on tax benefits