On September 7, 2021, the Thailand Board of Investment (BOI) announced that the BOI will expand the scope of incentives for companies that contribute to reducing greenhouse gas (GHG) emissions and modify the conditions and details for some of the incentives. As a result, the corporate income tax exemption for companies that contribute to GHG reduction will be expanded. The BOI also announced in the same document that it will improve its investment promotion policy for the production of electric vehicles (EV). The investment promotion policy will also be applied to the production of battery electric vehicles (BEV) platforms hereafter. The BOI also approved tax incentives for manufacturers of electric bicycles, exempting them from corporate income tax for at least three years.
Incentives for GHG reduction
The BOI has approved the following corporate income tax exemptions for companies that contribute to GHG reduction, respectively.
- Machinery upgrades aimed at reducing greenhouse gas emission: exemption for three years
- Cold storage facilities and cold storage transport operations using natural refrigerants: exemption for three years
- Operation of petrochemical production facilities implementing Carbon Capture Utilization and Storage (CCUS) technologies: exemption for eight years
- Operation of natural gas separation plants implementing CCUS technologies: exemption for eight years
Investment promotion policy for EV production
The BOI has decided to improve the investment promotion policy for the production of EV of all types. The investment promotion policy will also be applied to the production of BEV platforms hereafter. In general, platforms represent more than 70% of the total cost of BEV, so sharing platforms to reduce costs has become a new trend in the automotive industry.
The original announcement from the BOI on this topic can be viewed at the following URL.