BOI Thailand Incentives for Financial Services and Fintech AI
Thailand's BOI offers targeted incentives for financial services companies investing in fintech, digital banking, insurtech, and AI-powered financial operations. Through Regional Operating Headquarters (ROH), International Business Centre (IBC), and fintech-specific promotion categories, financial institutions can access significant tax benefits while building AI capabilities. This guide details every BOI incentive relevant to the financial services sector.
- Financial institutions (banks, insurance companies, securities firms) investing in AI technology
- Fintech companies developing AI-powered financial platforms in Thailand
- International financial groups establishing IBC operations in Thailand
- Insurance technology companies with AI-driven products
- Financial services companies with existing BOI promotion seeking training incentives
- Companies must comply with BOT, SEC Thailand, and OIC regulations as applicable
- Determine the appropriate BOI category (Activity 5.10 for fintech, 7.17 for IBC, 5.8 for R&D)
- Confirm alignment with Bank of Thailand and relevant financial regulator requirements
- Submit BOI application with fintech/AI business plan and workforce development strategy
- Obtain Promotion Certificate and set up compliant accounting structures
- Register AI training programmes with the Department of Skill Development
- Deliver training and maintain documentation for 200% deduction claims
- File annual BOI operating report including training activities and outcomes
- Ensure ongoing compliance with both BOI conditions and financial regulations
BOI and Thailand's Financial Services Sector
Thailand's financial services sector is one of the most developed in ASEAN, with a deep banking system, growing fintech ecosystem, and strong regulatory framework under the Bank of Thailand (BOT) and the Securities and Exchange Commission (SEC Thailand). The BOI has recognised that AI and digital technology are transforming financial services and has created specific incentive categories to attract investment in this area.
Key BOI-promoted activities relevant to financial services:
- Activity 5.10.1: Software development (including fintech and AI-powered financial platforms)
- Activity 5.10.2: Digital platforms (including digital banking, payment systems, and insurtech)
- Activity 5.8: R&D centres (including financial AI research)
- Activity 7.17: International Business Centre (IBC) — the successor to Regional Operating Headquarters (ROH)
- Activity 5.7: Cloud computing and data centres (supporting financial infrastructure)
Fintech and Digital Banking Incentives
BOI Activity 5.10: Fintech Software and Platforms
Financial technology companies developing AI-powered solutions in Thailand can receive Group A1 or A2 incentives:
Group A1 (maximum incentives) for:
- AI-powered credit scoring and underwriting platforms
- Machine learning fraud detection systems
- Blockchain and distributed ledger technology platforms
- Robo-advisory and AI wealth management systems
- AI-driven regulatory technology (RegTech) solutions
Incentive package:
- CIT exemption for 8 years with no cap (Group A1) or capped at investment (Group A2)
- Import duty exemption on servers, hardware, and development equipment
- 100% foreign ownership permitted
- Work permits for foreign fintech specialists
Group A2/A3 for:
- Digital payment platforms and e-wallets
- Insurance technology (insurtech) platforms
- Personal finance management apps with AI
- Financial data analytics services
Bank of Thailand Sandbox Alignment
Companies developing AI-powered financial services can participate in the BOT Regulatory Sandbox while simultaneously holding BOI promotion. This dual status allows:
- Testing innovative AI financial products under sandbox conditions
- Receiving BOI tax incentives from the start of development
- Transitioning from sandbox to full licence with BOI benefits intact
International Business Centre (IBC) Incentives
The IBC scheme is particularly valuable for multinational financial institutions establishing regional operations in Thailand. The IBC replaced the older Regional Operating Headquarters (ROH) and Treasury Centre (TC) schemes.
IBC Tax Benefits
| IBC Qualifying Services | Reduced CIT Rate |
|---|---|
| General management and business planning | 8% or 5% or 3% (based on expenditure thresholds) |
| Sourcing of raw materials and parts | Same reduced rates |
| R&D and technical support | Same reduced rates |
| Treasury management | 8% or 5% or 3% |
| International trade facilitation | Same reduced rates |
| Training and human resource management | Same reduced rates |
IBC Expenditure Thresholds
- 8% CIT rate: Annual operating expenditure of at least THB 60 million
- 5% CIT rate: Annual operating expenditure of at least THB 300 million
- 3% CIT rate: Annual operating expenditure of at least THB 600 million
For financial services groups, the IBC structure allows the Thailand entity to serve as a regional hub for AI training, technology development, and shared services — all at a significantly reduced tax rate.
IBC for Regional AI Training Hubs
Financial institutions can use the IBC structure to establish Thailand as their regional AI training centre:
- Centralise AI training development in Thailand for the ASEAN region
- Train staff from multiple country operations at the Thailand hub
- Deduct training expenses at the reduced IBC tax rate
- Bring in trainers from headquarters or other regions under BOI work permits
AI Training for Financial Services Staff Under BOI
The 200% Training Deduction for Financial AI
BOI-promoted financial services companies can claim the 200% training expense deduction for AI training of Thai employees. Relevant training areas include:
Credit and Lending:
- AI credit scoring model development and validation
- Machine learning for loan default prediction
- Automated underwriting systems
- Alternative data analysis for credit assessment
Risk and Compliance:
- AI-powered anti-money laundering (AML) systems
- Know Your Customer (KYC) automation with computer vision and NLP
- Market risk modelling with machine learning
- Regulatory reporting automation
Customer Experience:
- AI chatbot development and management for banking
- Natural language processing for customer sentiment analysis
- Personalisation engines for financial product recommendations
- Voice biometrics and AI-powered authentication
Operations:
- Robotic process automation (RPA) for back-office operations
- AI for document processing and data extraction
- Predictive analytics for branch and ATM network optimisation
- AI-powered cybersecurity for financial systems
BOT Regulatory Considerations
Financial institutions training staff on AI must also consider Bank of Thailand requirements:
- BOT Notification on Technology Risk Management: Requires banks to ensure staff are adequately trained on technology systems, including AI
- BOT Guidelines on AI in Financial Services: Issued in 2024, these guidelines require documented AI governance frameworks and staff competency assessments
- PDPA Compliance: Thailand's Personal Data Protection Act requires that staff handling AI systems processing personal data receive data protection training
BOI-eligible AI training that also satisfies BOT regulatory requirements delivers double value — tax savings and regulatory compliance simultaneously.
Structuring BOI Benefits for Financial Services Groups
Single Entity Structure
A financial services company with one Thailand entity can:
- Apply for BOI promotion for its fintech development or AI R&D activity
- Claim 200% deduction on AI training for Thai staff
- Access work permit facilitation for foreign AI specialists
- Earn additional CIT exemption years through training investment
Multi-Entity Structure (IBC + Operating Company)
Larger groups often establish two entities:
- IBC entity: Regional hub for management, training, and shared services (reduced CIT rate)
- Operating company: BOI-promoted for specific fintech or AI development activity (CIT exemption)
This structure allows different income streams to be taxed at the most favourable rates while centralising AI training at the IBC.
Group Training Cost Allocation
For multinational groups, the IBC can charge affiliated entities in other ASEAN countries for AI training services delivered from Thailand. These cross-border training fees are:
- Taxed at the reduced IBC rate in Thailand (as low as 3%)
- Deductible as training expenses in the recipient countries
- Subject to transfer pricing rules (arm's length pricing required)
How Pertama Partners Supports Financial Services AI Training Under BOI
Pertama Partners delivers AI training specifically designed for financial services companies in Thailand. Our programmes are structured to:
- Qualify for the BOI 200% training expense deduction
- Satisfy Bank of Thailand regulatory training requirements
- Meet PDPA data protection training obligations
- Prepare teams for AI deployment in credit, risk, compliance, and operations
- Support IBC regional training hub strategies
Contact us to design a BOI-optimised AI training programme for your financial institution.
Frequently Asked Questions
Frequently Asked Questions
Banks and financial institutions licensed by the Bank of Thailand can receive BOI promotion for specific activities such as fintech development, AI R&D, and data centre operations. The BOI promotion covers the technology investment activity, not the core banking licence. Many Thai banks have BOI-promoted subsidiaries or divisions for their technology development activities.
Under the IBC scheme, a Thailand entity can provide management, training, and technical support services to affiliated companies in other countries at a reduced CIT rate (as low as 3%). For financial services groups, this means establishing Thailand as the regional centre for AI training, developing programmes centrally, and delivering them to staff across ASEAN — all at minimal tax cost in Thailand.
Yes. Insurtech companies developing AI-powered insurance platforms, automated claims processing, or risk assessment systems can apply for BOI promotion under Activity 5.10 (software/digital platforms). Group A1 or A2 incentives apply depending on the level of AI and innovation involved. The Office of Insurance Commission (OIC) also supports insurtech development through its sandbox programme.
International consultancies establishing a training or advisory business in Thailand can apply for BOI promotion under various categories, including Activity 7.10 (vocational training) or Activity 5.8 (R&D and design centres) if the training includes research and curriculum development components. The IBC scheme may also apply if the consultancy serves multiple countries from Thailand.
- •AI for Credit Risk and Lending Decisions
- •Machine Learning for Fraud Detection in Banking
- •AI-Powered Regulatory Compliance (RegTech)
- •Natural Language Processing for Financial Documents
- •AI Chatbots and Virtual Assistants for Banking
- •Data Science for Insurance and Actuarial Teams
- •Robotic Process Automation for Financial Operations
- •AI Governance for Financial Institutions
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