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Enhanced investment incentives for Electric Vehicle production
27/04/2022
Thailand’s Board of Investment (BOI) has recently announced their decision to enhance the existing investment incentives available for the production of Electric Vehicles (EV). The BOI hopes that these additional incentives will help fast-track the growth of the EV market in Thailand and aid in the development of necessary infrastructure to help facilitate growth.
Key points
- Thailand’s BOI is offering a 3 year Corporate Income Tax exemption for the production of Electric Vehicles in Thailand.
- The BOI has reduced the qualification requirements, allowing more companies to take advantage of the incentives. Previously, only larger scale projects could qualify.
Does Thailand have electric cars?
The new incentives from the BOI have come at a good time as there has been a large surge in interest towards electric cars. But how many electric cars are there in Thailand? Many brands such as BMW, MG, Great Wall Motors and Tesla etc have all been selling electric cards in Thailand. However, during 2021 there were only 4,000 fully-electric vehicles registered in Thailand.
However, the new plans from the BOI are highlighting Thailand’s efforts to incentivise EV use and enhance its status as a major regional automaker. By 2030, the government targets to see the production of 725,000 EV units per year.
What are the new investment incentives?
Under the previous investment scheme, only large scale projects would benefit from tax exemptions. An example of this would be as follows:
Any project which provides charging stations with no less than 40 chargers (25% are required to be DC type), are eligible to take advantage of a 5-year corporate income tax (CIT) exemption.
Whereas, under the new incentives on offer from the BOI, charging stations with fewer chargers will also be able to apply for a BOI investment promotion and if successful, receive a 3 year Corporate Income Tax exemption.
What else has changed?
The new announcement has also made the application process simpler by removing the two following conditions:
- Ineligibility for more investment incentives granted by other agencies; and
- Mandatory ISO certification.
However, relevant parties must must adhere to any relevant safety regulations and submit a formal plan for the following:
- Implement an EV Smart Charging System; or
- Connect to an EV Charging Network Operator Platform.
Why should you consider a BOI Promotion for your company?
Applying for a BOI Promotion should always be the first option considered when opening a company in Thailand. BOI promoted companies have access to great benefits such as 100% foreign ownership, tax exemptions and relaxed rules for work permits and visas.
If you want more information about how our experts can assist you with the process for applying for a BOI Promotion, please click here. Alternatively, you can book a consultation with one of our experts to discuss everything you need at your convenience.
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