Significant incentives approved by the Board of Investment
The Board of Investment (“BOI”) approved a comprehensive set of incentives to boost investment in the following sectors:
Keywords: Mazars, Thailand, BOI, Investment incentive, Business for elderly, Clinical Research Centre, Contract Research Organization, Electronic vehicle, Corporate income tax, IPO, Tax incentives
21 December 2020
1. Launching new investment projects for care of the elderly and clinical research business activities
Eligible business activities | Incentives |
1. Hospitals for the elderly | Exemption from CIT for 5 years |
2. Nursing homes for the elderly and dependent people | Exemption from CIT for 3 years |
3. Contract Research Organization: CRO | Exemption from CIT for 8 years without limitation |
4. Clinical Research Centre: CRC | Exemption from CIT for 8 years without limitation |
* CIT = Corporate Income Tax | |
2. Reinstatement of investment projects for an electric vehicle (“EV”) business and International Procurement Office (“IPO”)
- EV
In the past, the BOI provided incentives only for investment projects related to electric automobiles and passenger cars. However, under the new EV investment projects, the BOI will provide a broader range of incentives for all kinds of electric vehicles.
The eligible EV business activities and incentives are as follows:
Eligible EV business activities | Size of investment | Incentives |
1. The manufacture of battery-powered electric vehicles (BEV) | At least THB 5 billion or more | Exemption from CIT for 8 years (more incentives for investments in R&D) |
Less than THB 5 billion | Exemption from CIT for 3 years (more incentives for projects meeting certain requirements of the BOI) | |
2. The manufacture of plug-in hybrid electric vehicles (PHEV) | - | Exemption from CIT for 3 years |
3. The manufacture of battery-powered electric motorcycles | - | Exemption from CIT for 3 years (more incentives for projects meeting certain requirements of the BOI) |
4. The manufacture of battery-powered electric three-wheelers | ||
5. The manufacture of battery-powered electric buses and trucks | ||
6. The manufacture of electric-powered vessels | - | Exemption from CIT for 8 years |
- IPO
Under the revived incentive packages, the qualified IPO projects will be exempt from import duty on machinery and raw and essential materials used in the production for export.
3. Other improved incentive packages for the existing investment projects
- The scope of manufacturing parts and equipment of EVs will be extended to cover the following four types of parts and equipment: (1) high voltage harness; (2) reduction gear; (3) battery cooling system; and (4) regenerative braking system.
- The incentive packages provided to the manufacture of battery will be revised to be more attractive for investment by providing a 90% reduction of import duties for 2 years on raw and essential materials which are not produced in Thailand.
- The deadline for applications for incentives provided under the Productivity Improvement Measures, i.e., a 50% Exemption from CIT for 3 years will be extended by 2 years to 31 December 2022.
The Productivity Improvement Measures cover:
- Energy conservation, alternative energy utilization, and production efficiency improvement
- Machinery upgrade
- R & D and engineering designs
- Sustainable development.
Reference: BOI’s press release no. 141_2563
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