Summary: BOI promotion for software, digital platforms and digital content falls under two activities with very different incentives. This guide explains how to tell them apart, what counts as development, how the THB 1.5 million Thai staff threshold and the tax exemption cap work, and what to prepare for the application.
Note: a “BOI company” is not a separate legal form. It is an ordinary Thai company, usually a private limited company, holding a BOI promotion certificate for a specific project. The incentives apply to the promoted software, platform or content activity; income from other activities is taxed normally. See what the BOI is and how promotion works.
8.1.1 or 8.1.2: the choice that decides your incentives
Since BOI Announcement Sor. 2/2567 (15 March 2024), digital technology activity 8.1 is split into development (8.1.1) and modification (8.1.2) of software, digital platforms and digital content. Which one applies determines whether the project receives a corporate income tax (CIT) exemption at all:
| 8.1.1 Development | 8.1.2 Modification | |
|---|---|---|
| Activity group | A2 | B |
| CIT exemption | Up to 8 years, capped each year at qualifying expenses | None |
| Import duty exemption on machinery | Yes | Yes |
| Minimum spending on new Thai IT staff | THB 1.5 million per year | THB 1.5 million per year |
| Start of operations | Within 12 months of the certificate, no extension | Within 12 months of the certificate, no extension |
| Land for the promoted activity | Possible, with separate BOI permission | Not permitted |
| Other conditions | Development rules of Por. 12/2566 | Improvement plan approved by BOI; category cannot be changed later |
Both activities allow new or used hardware and software to be used in the project. Non-tax incentives also include foreign ownership without a BOI shareholding limit, BOI visas and work permits for foreign experts, and remittance of funds in foreign currency. Where the activity is restricted under the Foreign Business Act, the company still obtains a Foreign Business Certificate from the Department of Business Development.
Could your tech business qualify for BOI?
Tell us briefly about your case and our Bangkok legal team will map out your options.
What counts as development
BOI Office Announcement Por. 12/2566 covers software (programs, applications and systems), platforms for digital services (systems through which information, goods or services are exchanged between providers and users online) and digital content (animation, games, AR and VR).
Development must take place in Thailand after the application is filed. A product that already exists can still be used, but the project must develop new functions that differ from the existing ones after filing, and the application must describe the existing product and its functions (Por. 12/2566, clause 2.1).
Example. A company runs a booking app built abroad. It plans to hire a Thai team to build a new reporting module for hotel clients. In the application, the existing app and its functions are described as the starting point; the reporting module is the new development, built in Thailand by Thai developers hired after filing. The key questions are what exactly the Thai company develops and what exactly it is paid for: adding a module does not make all revenue of the existing product promoted income. The approved project scope and the revenue attributable to it have to be defined. Updates that add no new functions, such as interface changes or new languages, do not count as development.
Activities excluded from the software development categories
Por. 12/2566 (clause 3) lists work that does not qualify as software, platform or digital content development under its rules. Whether similar work could fall under modification (8.1.2) is assessed separately, and these exclusions do not mean that such work automatically qualifies there either. Nor do they mean that a business doing such work can never receive BOI promotion under another category.
- websites that are not web applications
- consultancy services
- selling your own goods or services through a platform, such as retail, wholesale, transport or lending. Developing the platform can qualify; trading through it does not
- updates without new functions, such as interface changes or added languages
- buying, installing, configuring or maintaining third-party hardware or software
- data analysis services without developing your own analysis tools, and software testing services without developing the testing tools used
- computer graphics or visual effects for film, drama, advertising or documentaries; video and sound editing; digital drawing such as webtoons and stickers
- cryptocurrency services that do not involve platform development, such as ICOs
- software developed only for internal use
- other work without new development, assessed case by case
Thai IT staff: the THB 1.5 million threshold
Both activities require spending of at least THB 1.5 million per year on Thai IT staff engaged after the application. Training and certification costs do not count toward this threshold. The detailed rules below apply to regular employees on the company’s payroll; Sor. 2/2567 also allows temporarily engaged Thai IT staff to count, but the contract and supporting documents for such arrangements should be checked with BOI in advance. Not every contractor invoice can be counted.
- Roles: developers, programmers, system analysts, software engineers, testers, front-end and back-end developers, project managers, animators, 2D/3D artists, game artists and game designers
- Qualifications: one form of evidence per person, such as a transcript, at least one year of relevant experience certified by an employer, or relevant training of at least six months
- New hires only: staff must be added after filing; former employees count as new hires only if at least one year has passed since they left
- Proof for employees: employment is confirmed through PND 1 or PND 1 Kor filings
Example. Three Thai developers at THB 50,000 per month for 12 months give a payroll of THB 1.8 million, above the threshold. The number of people and the salary are only the figures of this example, not BOI requirements. The arithmetic alone is not enough: BOI checks each person’s role, qualifications, hiring date and tax filings. Developers hired before the application was filed do not count.
How the tax exemption works (8.1.1)
Under 8.1.1, the CIT exemption lasts up to 8 years and is capped each year. The cap equals 100% of qualifying expenses incurred in that accounting year:
- salaries of new Thai IT staff, compared with the payroll before the application
- training of Thai staff, with certificates and receipts
- first-time ISO 29110 or CMMI Level 2 (or equivalent) certification; renewals do not count
Unused cap cannot be carried forward to the next year, and the same expenses cannot be claimed under other government measures. Only income from selling or providing the promoted software, platform or content, such as licence, subscription or pay-per-use fees, is exempt.
Example. Qualifying expenses in a year total THB 2 million, so the cap for that year is THB 2 million of corporate income tax on profit from the promoted activity:
| CIT on promoted profit before exemption | Annual cap | Exempt, if conditions are met |
|---|---|---|
| THB 300,000 | THB 2 million | THB 300,000; the unused THB 1.7 million is not carried forward |
| THB 2.6 million | THB 2 million | THB 2 million; the remaining THB 600,000 is payable |
Spending on the team does not turn into an equal tax saving: the exemption is limited by the tax actually due on promoted profit. The cap is not a payment from the government, and income outside the promoted activity is taxed normally.
What to prepare for the application
- a description of the existing product, if any, and its current functions
- the new functions to be developed and a development plan for Thailand
- the team: roles, number of Thai and foreign staff, hiring dates and salaries
- the budget: Thai IT payroll, training, certifications, hardware and software
- the revenue model: which income comes from the promoted software, platform or content, and from which clients or contracts
- the technology used: hardware and software tools
The dedicated application form for activities 8.1.1 and 8.1.2, along with the required-document checklists, can be downloaded from the official BOI forms page.
The project is carried out by a Thai company, which can be registered after the application is approved. See the general BOI application guide for the full process and quarterly reporting for the obligations after approval.
Related articles
How to Apply for BOI Incentives in Thailand: A Guide for Foreign Investors
How to Start a Business in Thailand
Private Limited Company Formation in Thailand: Step-by-Step Guide
Thailand Advertiser Verification 2026: What Brands and Agencies Must Check
To start a preliminary assessment, send a short description of the product and its existing functions, the development plan for Thailand, the planned team and budget, and the revenue model. The result is a view on the right category, the obstacles and any missing evidence. See our BOI service for the scope.