Tax Alert 20 June 2025: BOI Updates

Tax Alert 20 June 2025: BOI Updates

The Board of Investment (BOI) has introduced new criteria for the employment of foreign nationals in BOI-promoted companies in Thailand. Announced on 5 June 2025, these updated guidelines set out minimum monthly salary thresholds by role level and revise the ratio of Thai to foreign employees in certain business categories. The changes aim to promote a more balanced workforce and ensure transparency in visa and work permit processing. The implementation will be phased in from 1 October 2025 for newly issued BOI promotion certificates, and from 1 January 2026 for certificates issued prior to 5 June 2025.

Minimum Monthly Salary Requirements

Foreign employees must now meet the following minimum salary levels to qualify for BOI visa and work permit privileges:

• Executive Level: Baht 150,00
• Management Level: Baht 75,000 (or Baht 50,000 for those holding a bachelor’s degree or higher)
• Operational Level: Baht 50,000

Supporting documentation includes:

• For existing employees: Monthly withholding tax returns (PND.1 or PND.1 Kor.)
• For newly hired employees: An employment contract stating the agreed salary
• For re-applications within one year: Both the contract and tax filings are required

Thai-to-Foreign Employee Ratio

The BOI has introduced workforce ratio requirements for certain company types:

• Manufacturing companies with over 100 employees: Must maintain a workforce where at least 70% are Thai nationals
• Manufacturing companies with fewer than 100 employees: No specific ratio requirement
• Service-based companies: No ratio requirement

These ratio requirements do not apply to foreigners hired on a short-term basis for periods not exceeding six months.

Effective Dates

• From 1 October 2025: Applies to BOI promotion certificates issued on or after 5 June 2025
• From 1 January 2026: Applies to BOI promotion certificates issued before 5 June 2025

Employer Guidance

The updated rules apply solely to companies holding BOI promotion privileges and processing visas and work permits through the BOI’s Single Window system. Employers should:

• Review their current foreign staff salaries to ensure compliance with new income thresholds
• Ensure that payroll or shadow payroll for expatriates is processed in Thailand
• Maintain proper tax documentation for visa purposes
• Monitor Thai-to-foreign staff ratios in manufacturing operations with over 100 employees

Professional Support

EY Thailand’s People Advisory Services (PAS) team offers comprehensive assistance to businesses in adapting to the new framework. This includes payroll review, document preparation, immigration strategy, and end-to-end compliance solutions tailored to BOI-regulated companies.

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