On 15 August 2025, Thailand Board of Investment (“BOI”) issued the Announcement No. 8/2568: Re Investment Promotion Measures in the Case of Impacts from Thai-Cambodian Border Situation.

This measure is aimed at facilitating Thai and foreign investors who may need to relocate production bases from Cambodia to Thailand due to the ongoing border situation, ensuring continuity of production while providing supportive relief measures.

The Notice is issued pursuant to Section 16 of the Investment Promotion Act B.E. 2520 (1977) and is effective from 8 August 2025 onwards.

Key Measures

Normally, the BOI only grants promotion privileges to projects that invest in new machinery, and the use of “used machinery” is generally not permitted in BOI projects.

However, under this Announcement, the BOI has introduced an exception for investors relocating production bases from Cambodia to Thailand, allowing them to apply for BOI promotion even when using “used machinery”.

Specifically, used machinery that is not older than 10 years (calculated from the year of manufacture to the year of import) will be permitted in promoted projects and will be counted as investment capital for the purpose of corporate income tax exemption.

Such machinery will also qualify for import duty exemption, provided that a reliable institution certifies its efficiency, environmental impact, energy use, and price reasonableness.

For machinery older than 10 years, the BOI will still allow its use in promoted projects, but it will not be eligible to be included as investment capital for corporate income tax exemption. Nevertheless, these machines will continue to benefit from import duty exemption, subject to certification regarding their efficiency, environmental and energy impact.

How to Enjoy These Benefits

To enjoy these special BOI incentives, businesses must first prepare a relocation plan from Cambodia to Thailand and ensure that the plan is carried out in line with BOI’s approval. Investors must also submit an application for investment promotion or project amendment by the last working day of 2026.

Supporting documents will be essential, including certification from a reliable institution on the efficiency, environmental impact, and energy use of the machinery, as well as a reasonable price assessment. Companies should also be ready to demonstrate that the relocation is genuine and aligned with BOI’s objectives of maintaining production bases in Thailand.

In practice, businesses considering relocation are encouraged to engage with BOI early, prepare detailed machinery lists, and ensure compliance with environmental and energy-use standards to smoothen the approval process

Rights and Privileges

The rights and privileges available depend on whether the applicant submits for a new investment promotion or a project amendment.

1. In the case of new investment projects involving relocation of an entire production line, applicants will be entitled to import duty exemption on machinery as well as other BOI rights and privileges that remain in force at the time of application.
2. Where a company seeks to amend an existing BOI-promoted project by transferring certain machinery from Cambodia, import duty exemption will also apply for a period of one year from the application date, even if the original import period has expired.

However, if the project has already commenced operations, the BOI will not permit any increase in production capacity, and any existing corporate income tax exemptions will not be adjusted.

Key Takeaways

• Companies relocating from Cambodia to Thailand may significantly benefit from import duty exemptions and, in certain cases, corporate tax privileges.
• Importantly, application deadlines close by end of 2026 – businesses should assess relocation plans promptly.
• Companies should prepare supporting documentation, including machinery certification and a detailed relocation plan, to secure BOI approval.

Relocate Smarter: Thailand BOI Offers Stability, Incentives, and Growth Opportunities.

Reference: BOI Notice No. 8/2568, dated 15 August 2025