Thailand BOI promotion for manufacture of vehicle parts

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:

  1. 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)

  1. 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

  1. Manufacture of parts for Hybrid, Electric Vehicle (EV) and Plug-in Hybrid Electric Vehicles (PHEV)

3.1 Battery

3.2 Traction Motor

3.3 Air-condition system

  1. Manufacture of rubber tires for vehicles
  2. 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.

Contact Thailawyers for any questions regarding Thailand BOI process.