BOI measures to increase competitiveness in the automotive industry

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Enhancing Automotive Competitiveness

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The Board of Investment (“BOI”) recently took measures to encourage investment in industries deemed crucial to national development. On 12 December 2023, the BOI issued Announcement No. 2/2566 outlining investment incentives aimed at increasing competitiveness in the automotive industry. These measures support manufacturers in adopting automation and robotics to improve efficiency in production.

Keywords: Mazars, Thailand, BOI, Automotive, Investment, Manufacturing, BEVs, HEVs, PHEVs 

The goal is to facilitate the transition to a modern, technology-driven automotive industry. The focus is on both general vehicle production and electric vehicle production, including battery electric vehicles (“BEVs”), plug-in hybrid electric vehicles (“PHEVs”), hybrid electric vehicles (“HEVs”), and BEV platforms for manufacturing PHEVs and HEVs. 

Conditions 

Incentives 

  • Minimum investment of THB 1 million, excluding land and working capital. 
  • Submit a plan for investing in automation or robotics machinery to be used in the project.
  • Submit a plan for developing automobile products that use technologies focused on cleanliness, energy efficiency, safety, intelligent driving, or other such technologies. 
  • For new projects, an exemption from corporate income tax of up to 50% of investments made in automation and robotics, excluding the cost of land and working capital for three years. 
  • For new projects that use automated machinery domestically where investments of at least 30% of the total value of the machinery are made to change or improve machinery, an exemption from corporate income tax of 100% of investments made in automation and robotics, excluding the cost of land and working capital for three years. 
  • For businesses already receiving investment incentives, an exemption from corporate income tax on income earned by such businesses. The exemption period is calculated from the day after that on which the BOI investment incentives certificate was received. 

Applications for these incentives must be submitted by 30 December 2024 (the last working day of the year) and the businesses receiving the incentives must start operating within three years of the date on which the BOI investment incentives certificate is issued. 

Source (in Thai): https://www.boi.go.th/index.php?page=boi_announcements&language=th  

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