Leo Watanabe
2024年9月9日
The Thai Board of Investment (BOI) unveiled a series of important updates through two announcements published in the Royal Gazette: No. 11/2024 and No. 5/2024.
These announcements aim to enhance the competitiveness of key industries in Thailand, including automotive parts manufacturing, businesses operating in Special Economic Zones, and high-tech sectors such as electric vehicle battery repair and data hosting. These measures are part of the government´s effort to position Thailand as a leading destination for high-tech investment in Southeast Asia.
1. Automotive Parts Industry: Upgrading and Automation
The BOI’s Announcement No. 11/2024 aims to boost the automotive parts industry by promoting investment in advanced machinery and automation systems. This regulation applies to both new and existing projects in the engine and vehicle parts manufacturing sectors.
To be eligible, projects must invest at least 1 million baht, excluding land costs, and align with BOI criteria such as machinery upgrades and obtaining industry certifications. The incentives once the project is approved by the BOI include corporate income tax exemptions for three years and exemptions from import duties on machinery. Companies investing in domestic automation machinery (at least 30% of the total value) can receive a 100% corporate tax exemption. The application deadline for these benefits is the end of 2025.
2. High-Tech Sector Enhancements
The BOI´s Announcement No. 5/2024 introduces key amendments aimed at boosting investment in the electric vehicle and digital sectors. Electric vehicle battery repair businesses are now eligible for promotion if they meet ISO 14000 environmental standards. Lead-acid battery repair is now excluded from the promotion. In the digital sector, data hosting businesses must obtain ISO/IEC 27001 certification and invest at least 5 billion baht to qualify for investment incentives.
These amendments reflect Thailand’s commitment to sustainability and technological advancement. Investors must ensure that their operations are sustainable and meet international standards to qualify for corporate income tax exemptions.
Conclusion:
The BOI’s latest announcements represent a continued effort to enhance Thailand’s industrial base and attract investment in key sectors. These regulations provide incentives for businesses looking to expand or enter the Thai market but they now include the requirement to meet international standards. BizWings has the expertise required to help navigate foreign companies in BOI registration. We have successfully helped multiple companies receive their BOI status.
Contact us at contact@bizwings.co to schedule a call and find out more!