On 18 February 2025, the Board of Investment of Thailand (“BOI”) announced the two new activities in regard with Agricultural, Food & Biotechnology, which are eligible for investment promotion covering both tax and non-tax benefits.
According to the new announcement of the BOI, the two new promoted activities are:
- Sustainable Aviation Fuel Production under type 1.2.10.4, with one condition that such business activity shall involve the production of Sustainable Aviation Fuel (SAF) from agricultural products, by-products, waste materials, or residues from agriculture, or from raw materials derived from agricultural by-products or waste; and
- Hybrid Sustainable Aviation Fuel Production under type 1.2.10.5 with one condition that such business activity must use co-processing technology in the production of SAF;
In terms of tax incentives, promoted business operators who carry out the sustainable aviation fuel production under type 1.2.10.4 will be able to enjoy 8-year exemption of corporate income tax incentive; while, business operators producing hybrid sustainable aviation fuel under type 1.2.10.5 will only be eligible for 3-year exemption of corporate income tax incentive. Beside the said tax privileges, both will be additionally exempted from import duties on machinery, raw materials used in the research and development (R&D), raw materials used in production for export.
For the non-tax incentives, both can be permitted to own land, bring into Thailand skilled workers and experts to work in investment promoted activities, take out or remit money abroad in foreign currency, and obtain a permit for foreign nationals to enter Thailand for the purpose of studying investment opportunities.
New activities eligible for investment promotion under Category 1_Bangkok Global Law