BOI for Employers: How Companies in Thailand Use BOI Incentives for AI Training

Why BOI Matters for Employer-Led AI Training

For companies operating in Thailand with BOI promotion, the training incentives represent one of the highest-return benefits available. Unlike direct grants or subsidies that require complex application processes, BOI training incentives work through the tax system — meaning the benefit is automatic once the training is properly structured and documented.

The core employer benefits are:

1. 200% tax deduction on qualifying training expenses — For every THB 1 spent on approved AI training, you deduct THB 2 from taxable income
2. Additional CIT exemption years — Investing in training can extend your tax holiday by 1-3 additional years
3. Work permit facilitation — Bring in foreign AI trainers and experts with streamlined 3-day processing
4. Training counts toward competitiveness enhancement — Meeting training investment thresholds unlocks merit-based incentive upgrades

These benefits apply to all BOI-promoted companies regardless of their specific promoted activity. Whether you are a manufacturer, a tech company, a financial institution, or a services firm, if you hold a BOI Promotion Certificate, you can access these training incentives.

The 200% Training Expense Deduction in Practice

How It Works

The 200% deduction applies to qualifying training expenses incurred by BOI-promoted companies for Thai employees. The mechanism is straightforward:

• Actual training cost: THB 500,000
• Deductible amount: THB 1,000,000 (200% of actual cost)
• Tax saving at 20% CIT rate: THB 200,000
• Effective training cost: THB 300,000 (a 40% discount)

For companies in a CIT exemption period, the deduction creates a carried-forward loss that reduces taxable income once the exemption expires.

What Qualifies

The Department of Skill Development (DSD) defines qualifying training broadly. For AI training, the following are eligible:

• External training programmes: Courses delivered by approved training providers such as Pertama Partners, universities, or certified technology trainers
• Internal training programmes: In-house training sessions registered with the DSD, including workshops, bootcamps, and structured on-the-job training
• International training: Courses taken abroad or delivered by international providers in Thailand, provided they are registered with the DSD
• Online training: E-learning and virtual instructor-led training (VILT) programmes, provided they include assessment and certification components
• Conference and seminar attendance: Attendance at approved AI conferences and technical seminars can qualify if they include training hours

What Does Not Qualify

• Training for foreign employees (deduction is for Thai employee training only)
• General orientation or onboarding that does not develop new skills
• Entertainment or recreational activities during training events
• Training not registered with the DSD

Registration Process with DSD

To claim the 200% deduction, employers must:

1. Register as a training provider (for internal training) or use an approved external provider (such as Pertama Partners)
2. Submit the training course outline to the DSD at least 15 days before the training begins
3. Maintain training records including attendance, hours, costs, and certificates
4. Report training activities in the annual BOI operating report and tax filing
5. Keep documentation for 5 years as the Revenue Department may audit claims

Earning Additional CIT Exemption Years Through Training

Beyond the 200% deduction, BOI-promoted companies can earn 1-3 additional years of CIT exemption by meeting training investment thresholds. This is part of the BOI's merit-based incentive system.

Competitiveness Enhancement — Training Component

How This Applies to AI Training

Consider a BOI-promoted manufacturing company with annual payroll of THB 100 million:

• 1% threshold: THB 1 million in annual AI training = 1 extra year of CIT exemption
• 2% threshold: THB 2 million in annual AI training = 2 extra years
• 3% threshold: THB 3 million or partnership with a Thai university for AI training = 3 extra years

The value of additional CIT exemption years can be enormous. For a company earning THB 50 million in annual profit, one extra year of CIT exemption saves THB 10 million (at 20% CIT rate). This means the THB 1 million training investment generates a 10:1 return through tax savings alone.

Bringing in Foreign AI Experts Under BOI

Thailand's standard work permit process can take weeks and requires advertising the position to Thai nationals first. BOI-promoted companies bypass these requirements:

BOI Work Permit Advantages

• Processing time: 3 working days (vs. weeks for standard applications)
• No local advertising requirement: No need to prove no qualified Thai candidate is available
• Relaxed ratios: Standard companies must employ 4 Thai nationals per 1 foreign worker; BOI companies can request exemptions for specialised roles
• Long-term visas: BOI facilitates multi-year visas (up to 4 years, renewable)
• Dependent work rights: Spouses of BOI work permit holders can also obtain work permits

Using BOI for Foreign AI Trainers

Companies can bring in foreign AI trainers and specialists under BOI work permit facilitation. This is particularly valuable for:

• Short-term AI training engagements (1-6 months)
• Specialised AI skills not yet widely available in Thailand (e.g., advanced NLP, reinforcement learning)
• International certification programmes requiring foreign-qualified assessors
• Technology transfer from headquarters to Thai operations

To use this benefit, the foreign trainer must be listed in the BOI application or added through an amendment request to the BOI.

Annual Reporting Requirements

BOI-promoted companies must submit annual operating reports that include training activities. Key reporting elements:

Training Report Components

• Number of Thai employees trained during the year
• Description of training programmes and AI topics covered
• Total training hours and cost per employee
• Names and qualifications of trainers (both Thai and foreign)
• Training outcomes and certifications earned
• Training expenditure as a percentage of payroll

Compliance Tips

• Document everything: Keep attendance records, invoices, certificates, and training materials
• Separate promoted and non-promoted costs: Training expenses must be allocated between promoted and non-promoted activities
• Report honestly: The BOI conducts site visits and audits; discrepancies can lead to incentive revocation
• File on time: Annual reports are typically due within 150 days after the fiscal year-end

How Pertama Partners Supports BOI-Promoted Employers

Pertama Partners is an approved AI training provider whose programmes are designed to qualify for BOI training incentives. We help BOI-promoted companies in Thailand:

• Structure training for maximum deduction: Our programmes are designed to qualify for the 200% training expense deduction with proper DSD registration
• Meet competitiveness thresholds: We help calculate and optimise training investment to earn additional CIT exemption years
• Deploy foreign experts: Our international AI trainers can be engaged under BOI work permit facilitation
• Document for compliance: We provide comprehensive training documentation for BOI annual reporting
• Customise for your industry: AI training tailored to your specific promoted activity and business context

Contact us to design a BOI-compliant AI training programme that maximises your tax benefits.