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BOI Details

Thai Pet Food Trade Association > BOI Details

BOI

        The Thai Pet Food Trade Association is currently coordinating with the Thailand Board of Investment (BOI) to seek a consultation regarding the enhancement of investment promotion privileges for the pet food industry. The proposed initiative aims to elevate the industry’s eligibility from BOI Category A2 to Category A1 or A1+, thereby strengthening its long-term competitiveness and supporting sustainable industry growth.

        At present, animal feed and feed ingredient manufacturing activities (Category 1.2.8) receive BOI incentives at the highest level available under Category A2 for the production of therapeutic pet food. Eligible benefits include an eight-year corporate income tax exemption, exemption of import duties on machinery, and other investment-related incentives as prescribed by the BOI.

        Categories A1+ and A1 are designated for industries considered strategically important by the BOI. These activities are characterized by the application of advanced technologies, research and development (R&D), and innovation-driven value creation, and therefore qualify for enhanced investment privileges.

        Within the Agriculture and Food sector, the activities currently classified under Categories A1+ and A1 are as follows:

A1+ Activities

  • Corporate income tax exemption for up to 10–13 years.
  • Currently, one activity is classified under A1+:
    • Biotechnology Development.

A1 Activities

  • Eight-year corporate income tax exemption without a cap on the exempted amount.
  • Currently, three activities are classified under A1:
    1. Upstream Agriculture Activities (e.g., cultivation of economic crops and energy crops);
    2. Manufacture of, or provision of services related to, modern agricultural machinery and equipment; and
    3. Biotechnology Activities, including plant and animal breeding improvement, production of biopharmaceuticals, diagnostic kits, and raw materials or materials used in research and development.

The proposed enhancement of BOI incentives for the pet food industry would serve as an important mechanism to encourage investment, foster technological advancement and innovation, and further strengthen Thailand’s position as a leading global hub for pet food production.