If you plan to apply for an investment promotion from Thailand BOI for your business of Manufacture of machinery, equipment and parts, you need to know the condition of each type of activity that the BOI is promoting and also the incentives it is offering in order to see if this is what you want to do and it is worth your time and money to pursue.
Different types of activities promoted by Thailand BOI in the area of manufacture of machinery, equipment and parts:
- Automation machinery and/or automation equipment with engineering design: The project must design a control system using an embedded system. This activity gives 8 year corporate income tax exemption.
- Machinery, equipment and parts and/or repair of mould and die: The project must have part forming process and/or with engineering design. This activity gives 5 year corporate income tax exemption.
- Assembling of Machinery and machinery equipment: The project must have assembling process as approved by the Board. This activity gives 3 year corporate income tax exemption.
The corporate income tax exemption benefit mentioned in the 3 types of business means only upto 100% of the investment you put in the project (excluding the cost of land and working capital).
The other incentives offered by Thailand BOI for Manufacture of machinery, equipment and parts are:
- Exemption of import duty on machinery used in the promoted project
- Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year, extendable as deemed appropriate by the Board of Investment
- Non-tax incentives, such as you can get many work permits for your foreign skilled workers and experts (no need to worry about Baht 2M capital and hiring 4 Thai employees for each expat), you can own the land used for the project, and you can remit money abroad in foreign currency.
Contact Thai Lawyers today for setting up your Thailand BOI company.