On 9^th December 2024 the BOI (Board of Investment of Thailand) issued its Notification No. 20/2567 Re: Investment Promotion Measure to Upgrade Automotive Industry to extend the application filing period for internal combustion engine vehicles, plug-in hybrid electric vehicles (PHEV) and hybrid electric vehicles (HEV) from 2024 to 2025.

The investment promotion measures available in 2025 and their requirements are the same as those of 2024.  The key application requirements and benefits are the followings:

1.   The business activities eligible for filing the BOI application must be manufacture of internal combustion engine vehicles or PHEV or HEV.

2.   If the applicant is an existing BOI-promoted company, its corporate income tax (CIT) exemption or reduction must have already expired, or its current BOI promoted project is operating without tax incentives.

3.   The investment capital must be not less than THB1,000,000 (excluding land value and working capital).

4.   The BOI application must include a business plan showing details of investment in machinery that adopts automation systems or robotics.

5.   The BOI application must also include an automotive production development plan that utilizes technologies aimed at cleanliness, energy efficiency, safety, intelligent driving, or other appropriate technologies.

6.   The promoted project will be granted these benefits: (1) exemption of import duties on machinery imported for the project, and (2) exemption of CIT for 3 years at the rates of (a) 50% of  the investment capital for automation systems and robotics (excluding the land value and the working capital) or (b) if the machinery usage is related to or in support of the domestic industry for manufacturing automatic systems not less than 30% of the value of the upgraded machinery or the value of all the machinery, 100% of the investment capital for automation systems and robotics (excluding the land value and the working capital).

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