HLB Thailand Team
Investment promotion measures approved for data centers, SMEs and tourism
On 19 May 2025, Thailand’s Board of Investment (BOI) approved new conditions and benefits for promotion of investment in data centers, as well as measures to promote and support local small and medium size enterprises (SMEs), especially in sectors facing high competition, and improved tax benefits for tourism businesses in second-tier provinces.
Revised Requirements and Benefits for Data Center, Data Hosting and Cloud Service Projects
The Board approved a revision to the requirements and benefits for investment in data centers, data hosting and cloud service projects, aimed to more appropriately reflect recent technological developments, to be more commensurate to the actual investment amount, and to ensure the projects contribute clearer benefits to Thailand’s economy, while helping workforce development and the appropriate management of natural and energy resources.
To receive the highest corporate income tax exemption of 8 years, the projects will need to meet power usage effectiveness (PUE) standards, and offer data hosting using advanced computing capabilities such as graphic processing units (GPU), etc. The tax benefits offered to other projects, not matching these requirements, will be capped at 5 years.
Applicants for investment promotion in this sector will also be required to submit a plan detailing how the project will contribute to Thailand’s economy. The plan should include activities such as professional training, cooperation with local technical schools and universities in creating courses or conducting joint research and development projects, skill development programs for Thai SME entrepreneurs, support to the strengthening of the country’s supply chains, etc. Implementation of the proposed plan will have to be completed before a project can exercise its rights to corporate income tax exemptions.
Promotion and Support Measures for Local SMEs and Entrepreneurs
A package of measures approved by the Board to support Thai entrepreneurs includes an increase in the corporate income tax benefits granted to BOI promoted SMEs, which will now receive a 5-year corporate income tax exemption equal to as much as 100% of their investment in enhancing their capabilities and improvements, up from the previous 3-year corporate income tax exemption capped at 50% of investment.
Promotion of Tourism Businesses in 55 Second-Tier Provinces
The Board also approved measures to promote investment in tourism infrastructure businesses in the so-called 55 second-tier provinces of Thailand. The measures are in line with the Thai government’s policy to upgrade tourism infrastructure and develop new tourist attractions to promote the distribution of tourists in less visited areas and to spread nationwide the economic benefits of tourism.
Investment in tourism businesses including large-scale quality tourist attractions, theme parks, Thai cultural centers, handicraft centers, museums, open zoos, international exhibition centers, large convention halls, cruise terminals, motor racing stadiums, cable cars and electric trams for tourism in the 55 designated provinces will receive 8 years corporate income tax exemption, increased from 5 years previously. Investments in hotel business in these provinces will receive 5 years corporate income tax exemption, compared to the 3 years granted previously.
