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BOI for IT Companies in Thailand: The Two Codes That Define Everything (2026)
Thailand offers IT entrepreneurs something no other Southeast Asian market can match: 100% foreign business ownership, corporate income tax exemptions, and long-term visas for expats - all through the Board of Investment (BOI) program.
Two activity codes, 8.1.1 and 8.1.2, are the primary entry points for international tech teams relocating to Bangkok, Phuket, or Chiang Mai. The difference between them can translate into tens of millions of baht in tax savings - or nothing at all.
Choosing the wrong code is an expensive mistake. Here is a precise breakdown of both options.
Quick Answer
- Code 8.1.1 covers the development of new software, digital platforms, and content from scratch. It provides a Corporate Income Tax (CIT) exemption of up to 100% of qualifying expenses.
- Code 8.1.2 covers modification and adaptation of existing digital products. It does not provide a CIT exemption.
- The minimum investment for both codes is 1.5 million THB per year (approximately $42,000), directed toward salaries of Thai IT professionals.
- Both codes grant 100% foreign ownership, visas, work permits, and the right to repatriate profits in foreign currency.
- Under Code 8.1.1, the project must launch within 12 months of receiving the BOI certificate.
- Imported equipment for R&D and training is exempt from import duties under both codes.
Scenarios and Options
Scenario 1: Building a Proprietary Product (Code 8.1.1)
You are building a SaaS platform, mobile app, game, or AI service from the ground up, with all development conducted in Thailand. Your team includes Thai developers whose combined annual salaries meet or exceed 1.5 million baht.
What you gain: a full exemption from corporate income tax on profits. Thailand's standard CIT rate is 20%. For a company generating 10 million baht in annual profit, that is a saving of 2 million baht every year. The exemption is calculated against actual spending on Thai staff salaries, training, and certification under standards such as ISO 29110 or CMMI.
Key constraint: the product must be fully launched within 12 months of the BOI certificate date. BOI monitors compliance and can revoke the certificate if deadlines are missed.
Scenario 2: Adapting or Localizing an Existing Product (Code 8.1.2)
You are taking existing software and reworking it - localizing for the ASEAN market, redesigning the UI, or integrating Southeast Asian payment gateways. The product is not new, but the work is substantial.
What you gain: 100% foreign ownership, visas, import duty exemptions on equipment, and the right to repatriate profits. However, there is no CIT exemption. The standard 20% rate applies to all profits.
Requirement: a detailed business plan describing the nature of the modifications. BOI evaluates this at the application stage. The activity category is locked in and cannot be changed mid-operation without filing a new application.
Scenario 3: The Hybrid Structure
Some companies operate two separate legal entities - one for new product development under Code 8.1.1, and another for support and modification work under Code 8.1.2. This is legally permissible, but requires a clean separation of assets, teams, and accounting. Independent legal counsel from a Thailand-based BOI specialist is essential before pursuing this route.
Comparison Table
| Parameter | Code 8.1.1 (New Development) | Code 8.1.2 (Modification) | Notes |
|---|---|---|---|
| Activity Type | New software, platforms, content | Adapting or modifying existing products | Classification is locked after approval |
| Minimum Investment | 1.5M THB/year | 1.5M THB/year | Thai staff salaries only |
| CIT Exemption | Yes, up to 100% of qualifying costs | No | Biggest financial distinction |
| 100% Foreign Ownership | Yes | Yes | Both override the standard 49% foreign limit |
| Visas and Work Permits | Yes | Yes | Available to founders and key staff |
| Import Duty Exemption | R&D and training equipment | R&D and training equipment | Used equipment is also eligible |
| Profit Repatriation | Yes, in foreign currency | Yes, in foreign currency | No restrictions |
| Launch Deadline | 12 months from certificate | No fixed deadline (business plan required) | BOI monitors Code 8.1.1 actively |
| Best Suited For | Startups, product teams, AI ventures | Outsourcing, localization, customization |
Main Risks and Mistakes
1. Misclassifying your activity. A company that is fundamentally modifying an existing product but applies under Code 8.1.1 risks losing its certificate during a BOI audit. Audits do happen, and a mismatch between declared and actual activity is grounds for revoking all benefits.
2. Understaffing with Thai nationals. The 1.5 million baht threshold applies exclusively to Thai IT employee salaries. Salaries paid to foreign staff do not count. If your entire team consists of expats, the minimum requirement is not met.
3. Missing the 12-month deadline under Code 8.1.1. BOI expects a working, launched product within one year. Delays without documented justification lead to a status review and potential certificate revocation.
4. Weak business plan under Code 8.1.2. BOI requires a detailed, specific description of the modifications being made. A generic or vague application is one of the most common reasons for rejection.
5. Overlooking category lock-in. Under Code 8.1.2, your activity is fixed. Pivoting to new product development without filing a fresh application is not permitted.
6. Filing without a local BOI lawyer. The BOI application process is a detailed bureaucratic exercise. Errors in the document package delay review by months and can trigger requests for clarification that restart timelines.
FAQ
How much does a BOI application cost? The application fee itself is zero. Costs arise from documentation preparation and legal advisory services. Market rates for a full application cycle with an experienced BOI lawyer typically range from 150,000 to 400,000 THB.
Can I apply for BOI while outside Thailand? Yes, the application can be submitted remotely. However, the company must be registered in Thailand and all qualifying activities must be conducted within the country.
How long does the review process take? The standard timeline is 60 to 90 business days. Incomplete document submissions extend this significantly.
Do I need to hire Thai staff immediately? Yes. The 1.5 million baht annual payroll for Thai IT professionals is a mandatory condition for both codes. There is no grace period.
What qualifies as 'new software' under Code 8.1.1? A product built from the ground up with original architecture and unique functionality. Using open-source libraries is acceptable, but the core product must be proprietary and original.
Can I switch from Code 8.1.2 to Code 8.1.1? Formally yes, but it requires a new BOI application and a new certificate. In practice, this takes several months and restarts the process entirely.
Does the CIT exemption apply to dividends? No. The exemption covers corporate income tax at the company level. Dividend taxation depends on the tax residency of the recipient shareholder.
What is the minimum team size for an application? BOI does not set a minimum headcount. The binding requirement is the 1.5 million baht annual salary floor for Thai staff. At 2026 Bangkok market rates, this equates to roughly 3 to 5 junior-to-mid-level developers.
How does BOI connect to real estate in Thailand? There is no direct link, but a BOI certificate simplifies access to long-term visas. These visas, in turn, affect a foreigner's ability to purchase condominium units on a freehold basis. IT professionals operating under BOI status are among the most active buyers of residential property in Phuket, Bangkok, and Pattaya.
Can a freelancer apply for BOI status? No. BOI certificates are issued to registered Thai legal entities only. An individual operating without a formally registered company does not qualify.
If you are evaluating a move for your IT business to Thailand, the first step is an honest audit of your activity: are you building something new, or improving something that already exists? That answer determines your code, and your code determines whether you pay 20% corporate tax or effectively zero. A BOI certificate is not just a compliance document - it is full foreign ownership in a country that otherwise caps foreign participation at 49%.
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