If you are planning to produce e-bikes in Thailand, you may consider applying for promotion with the Board of Investment. For setting up a Thailand BOI company, you may be eligible for promotion under activity number 3.12, manufacture of electric bicycles (e-bike). If your project gets approved, you can be granted with these incentives:
– Exemption of corporate income tax for 3 years
– Exemption of import duties on machinery
– Exemption of import duties on raw materials used in Research & Development
– Exemption of import duties on raw materials used in production for export
– Non-tax benefits which include Thailand work permit for expat employees with less restrictions, eligibility to own land to build your factory
The BOI has set these conditions for application of this project:
- The plan must be proposed in package covering (1) a manufacture project of electric bicycles, (2) a manufacture project of electric batteries (own project or other manufacturer’s project); and (3) used battery management plans.
- Electric bicycles and electric batteries must be manufactured within 3 years from the issuance date of the investment promotion certificate.
- The projects must use electric bicycle frames from lightweight materials such as aluminum alloy, chromium-molybdenum alloy steel (Chrome Moly), titanium alloy and carbon fiber, etc.
- Electric bicycles manufactured by the project must comply with the EN15194 standard or equivalent.
- The battery used in electric bicycles must be of an environmentally friend technology.
- Bicycles can be produced together with electric bicycles in the project. However, the manufacture of bicycles is not eligible for the benefits of corporate income tax exemption.
- No extension of the machinery importation schedule shall be allowed except for justifiable reasons.
- Additional incentives:
- If the manufacture of traction motors is started within 3 years from the issuance date of the investment promotion certificate, an additional 1-year corporate income tax exemption shall be granted.
- If the manufacture if electric bicycle frames with lightweight materials is started within 3 years from the issuance date of the investment promotion certificate, an additional 1-year corporate income tax exemption shall be granted.
- The approved projects may apply for additional incentives to enhance competitiveness under the category of research and development of technology and innovation according to the specified criteria
- No additional incentives shall be granted on the merit of industrial area development.
Consult with Thailand BOI experts to for smooth application and company registration.