Thailand is making significant strides towards sustainable investment by introducing a new set of tax measures to promote environmentally-conscious business practices. In line with its five-year strategy (2023-2027), the Board of Investment (BOI) aims to make the country a global leader in sustainable business by aligning its tax policies with international standards.
Thailand’s Commitment to Sustainable Business Practices
The BOI’s new tax initiatives come at a crucial time when global interest in sustainable investment is rapidly increasing. By offering financial incentives to businesses that prioritise environmental responsibility, the BOI is positioning Thailand as an attractive destination for businesses focused on green growth. These measures, set to roll out next year, are part of a broader effort to tackle climate change while supporting economic expansion.
Suthiket Thatpitakkul, the BOI’s deputy secretary-general, explained, “We are committed to supporting businesses that have sustainable practices.” His remarks, made during a discussion at the Sustainability Forum 2025, reflect Thailand’s ongoing push towards building a green economy that is both profitable and eco-friendly.
Key Tax Measures in Thailand’s New Five-Year Strategy
As part of Thailand’s new tax framework, the BOI has outlined several key initiatives aimed at boosting sustainable investment. Here’s a breakdown of what investors can expect:
1. OECD Tax Alignment
Thailand is set to align its tax policies with the OECD’s global minimum tax standards. This will help bring the country’s taxation in line with international norms, making it a more competitive and predictable destination for investors looking to operate in a tax-efficient environment. By adopting these global standards, Thailand is making a clear commitment to modernising its tax system and supporting foreign direct investment (FDI).
2. Carbon Tax and Incentives for CCUS Technologies
The BOI will also introduce measures to encourage investments in carbon capture, utilisation, and storage (CCUS) technologies. With a growing emphasis on reducing carbon emissions, this initiative aims to support businesses that invest in energy-efficient technologies and carbon-neutral practices. Tax incentives will be offered to companies that actively work on lowering their carbon footprint, contributing to Thailand’s efforts to meet its climate goals.
These incentives will not only help businesses reduce their environmental impact but also create new opportunities for companies to tap into the green economy. By making it more financially viable for companies to adopt sustainable technologies, the BOI hopes to drive long-term economic and environmental benefits.
3. Tax Collection and Refund Mechanism
A new tax collection and refund mechanism will be implemented for Thai businesses. This system will ensure that companies investing in sustainable practices can benefit from tax rebates and refunds, encouraging more companies to go green without the immediate financial burden. The mechanism aims to make sustainable investment more accessible, providing a much-needed financial buffer for companies transitioning to more eco-friendly practices.
4. Focus on Energy Efficiency
To further drive sustainable investment, the BOI will support businesses focused on improving energy efficiency. Tax incentives will be available for companies that integrate energy-efficient technologies into their operations, reducing both their environmental impact and operating costs. This initiative is particularly beneficial for industries that rely heavily on energy, such as manufacturing and logistics, providing them with the resources they need to adopt more efficient practices.
Why These Measures Matter for Investors
These new measures offer a range of benefits for businesses and investors looking to tap into the growing demand for sustainable solutions. Here’s why these changes are significant:
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Attractive Investment Environment: By aligning its tax policies with international standards, Thailand is creating a more predictable and competitive investment environment. This is especially important for foreign investors who want to ensure their operations comply with global regulations while benefiting from tax incentives.
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Eco-friendly Business Growth: The focus on sustainable business practices gives companies a clear incentive to go green. The tax incentives for carbon-neutral technologies and energy efficiency will help businesses invest in the future of the green economy without the financial strain of traditional business expenses.
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Access to Global Markets: As sustainability becomes a central focus for international markets, companies that adopt eco-friendly practices will have access to new opportunities. With OECD-aligned tax policies, businesses in Thailand can also better engage with global markets, tapping into the increasing demand for environmentally responsible products and services.
How the New Tax Framework Aligns with Global Trends
Thailand’s decision to align its tax framework with the OECD’s global minimum tax is a significant step forward in positioning the country as an investment hub. This move reflects the growing recognition of tax harmonisation in a globalised world. As many countries around the world look to modernise their tax systems and promote sustainable business practices, Thailand is positioning itself as a competitive player in this global race for green investment.
In addition to tax measures, the BOI’s focus on carbon reduction and energy efficiency aligns with broader global goals to combat climate change. The carbon tax incentives for businesses involved in carbon capture and energy-saving technologies are timely and reflect Thailand’s desire to contribute to the global push for environmental sustainability.
Looking Ahead: Thailand’s Sustainable Future
Thailand’s new tax incentives and investment strategies will play a crucial role in shaping the country’s sustainable future. By supporting green technologies, aligning with international tax standards, and offering practical financial incentives, the BOI is laying the groundwork for a thriving, eco-conscious business ecosystem.
For businesses, this is an opportunity to position themselves at the forefront of the green revolution. By investing in energy efficiency and carbon reduction technologies, companies can gain a competitive edge while contributing to the fight against climate change.
As the world moves toward a sustainable economy, Thailand is making sure it remains an attractive and responsible destination for international investment. Through these tax measures, the BOI is not just focusing on the financial health of companies but also on the long-term health of the planet.
