The Thai government’s efforts to promote the expansion of information and communications technology have resulted in good access to the Internet for a large part of the population. As a result, opportunities to participate in e-commerce have developed. Thailand's E-commerce market value is predicted to reach a total volume of USD 113.45 billion by 2021, a 45.3% increase compared to 2017. In Southeast Asia, Thailand held the top spot for the market value of the business-to-consumer (B2C) e-commerce sector which is worth more than USD 27.7 billion by 2021. With this background, e-commerce has become an interesting opportunity for many foreign investors.
One way for a foreign investor to hold 100% of the shares in a company in Thailand is through the investment promotion of the Board of Investment (“BOI”). The BOI offers various investment incentives for certain business sectors which the government considers to be beneficial for the development of the Thai economy. These include investments to activities relevant to the development of software, digital platforms, or digital content, whether in the context of “E-Commerce” or other digital services.
The BOI incentives provide tax incentives (corporate income tax exemption for 8 years) as well as various non-tax incentives (100% foreign ownership, possibility to acquire land; easier obtaining of visas and work permits for expats).
For further information about the investment opportunities for e-commerce businesses in Thailand, please see our newsletter here.
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