This post is about Thailand BOI privileges granted to vehicle parts manufacturing activity. There are 5 types of vehicle parts manufacturing which the BOI gives the promoted companies a corporate income tax exemption and non-tax incentives differently. The following activities are eligible for Thailand BOI promotion for manufacture of vehicle parts:
- Manufacture of vehicle parts using high technology including:
1.1 Substrate for Catalytic Converter
1.2 Electronic Fuel Injection System
1.3 Automotive Transmission
1.4 Electronic Control Unit (ECU)
- Manufacture of automobile parts for safety parts and energy-saving parts
2.1 Anti-Lock Brake System (ABS) or Electronic Brake Force Distribution (EBD)
2.2 Electronic Stability Control (ESC)
2.3 Regenerative Braking System
2.4 Idling Stop System
2.5 Autonomous Emergency Braking System
- Manufacture of parts for Hybrid, Electric Vehicle (EV) and Plug-in Hybrid Electric Vehicles (PHEV)
3.2 Traction Motor
3.3 Air-condition system
- Manufacture of rubber tires for vehicles
- Manufacture of other vehicle parts
Thailand BOI benefits for manufacture of vehicle parts
– 8 year corporate income tax exemption, not more than 100% of investment (excluding cost of land and working capital) (except for Manufacture of other vehicle parts)
– Exemption of import duty on machinery
– Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year, which can be extended as deemed appropriate by the Board of Investment
– Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.
– Permit to own land.
– Permit to take out or remit money abroad in foreign currency.