BOI policy to provide incentives to businesses reducing greenhouse gas emissions

As a result of the government’s policy to reach the goal of zero greenhouse gas emissions by 2065, the BOI has taken certain measures to provide incentives to businesses reducing greenhouse gas emissions, as follows:

Keywords: Mazars, Thailand, Legal, BOI, Greenhouse gas emissions, Sustainability

23 May 2022

Measures	Conditions	Incentives
1. Promoting business activities related to energy conservation, using alternative energy, or reducing the impact on the environment	The applicant must submit an investment plan which includes one of the following activities: upgrading machinery to reduce energy consumption; upgrading machinery to use alternative energy; or upgrading machinery to reduce the impact on the environment, such as reducing waste, wastewater, or air pollution.	An exemption from import duty on machinery A three-year exemption from corporate income tax on the revenue of an existing project, capped at 50 per cent of the investment capital (excluding the cost of land and working capital)
2. Promoting the grassroots economy	The project must involve cooperation between local and large-scale business operators in the agricultural sector to reduce the impact of greenhouse gas emissions and to develop sustainable agricultural practices, such as: reducing methane gas emissions from rice planting; or developing new agricultural technology to reduce greenhouse gases and to increase efficiency and sustainability.	A three-year exemption from corporate income tax of no more than 120 per cent of the investment capital (excluding the cost of land and working capital)
3. Manufacturing electric vehicles	Eligible activities include the manufacture of electric vehicles, electric tricycles, as well as parts and equipment for electric vehicles.	An exemption from corporate income tax for three to eleven years, depending on the activity
4. Promoting business activities using carbon capture, utilization, and storage technology	Eligible activities include the manufacture of petrochemical products and operating a natural gas separation plant.	An exemption from corporate income tax for eight years