If you are planning to start a business in Thailand, now is the right time. According to BoI secretary-general Duangjai Asawachintachit, the Board of Investment (BoI) is preparing to come up with many plans. These schemes will entice investors and assist those affected by the Covid-19 epidemic.
New BOI Benefits to Start Business in Thailand
According to her statement, BoI will come up with a new proposal to its board of directors next month. It will be to add clinical studies as a new type of medical equipment business eligible for tax benefits. She claims that clinical research is one of the most important aspects of the medical device sector. After the BoI began offering some additional benefits to investors in April, there was growth in applications for tax support in the production of medical equipment.
These additional perks of the BoI to individuals with a commitment to invest this year expects to sell more than 50% of their products domestically. Between May and August of this year, the BoI received applications for investment in the production of medical equipment totaling THB13 billion. The BoI will also propose measures to assist investors in keeping their staff amid the current crisis.
Smart Visa Policy for Foreign Investors to Start Business in Thailand
The Board of Investment will update its smart-visa policy in order to attract more foreign professionals to work in Thailand. Thailand’s smart-visa programme entices workers, investors, executives, and start-up entrepreneurs to work in the country’s priority industries. In an effort to entice additional investment, the government’s Centre for Economic Situation Administration approved in principle revisions to the criteria for awarding smart visas to foreigners on September 16.
Incentives to Start Business in EV-Industry in Thailand
A package of incentives for Thailand’s EV manufacturing supply chain got BOI approval. Additionally, emphasis was on crucial parts like batteries. Projects in a variety of sectors of EV-Industry got BOI approval of funds worth THB35.7 billion.
A board meeting was held under the aegis of Prime Minister Prayut Chan-ocha. The discussions in the meeting had focus on methods to speed up the growth of electric vehicle production in Thailand and allow the sector to shift into a higher gear. The new EV incentive package replaces the previous one, which expired in 2018. This segment covers cars, buses, trucks, motorbikes, and ships.
New Announcements for Businesses in Thai EV-Industry
Manufacturing of Electric Car and Equipments:
- Three-year corporate tax holidays for plug-in hybrid (PHEV) projects
- Eight-year corporate tax holidays for battery electric (BEV) projects
The above privileges are applicable for projects with investments and expenses of at least THB5 billion. Moreover, these are extendable for BEV R&D investment.
Three-year tax vacations are available for projects worth less than Bt5 billion. However, there will be extensions for BEV ventures that start by 2022. These projects must focus to generate additional parts and produce at least 10,000 units within three years. Moreover, the same facilities will be applicable if investments are made in R&D.
Manufacturing of Electric Motorcycles & Automotives and Equipment
Businesses dealing with motorcycles, three-wheelers, buses, and trucks will enjoy a three-year tax break, extendable if specific conditions are met.
Manufacturing of Ships and Equipment
Electric-powered shipbuilding projects with a gross tonnage of less than 500 are eligible for an eight-year corporate income tax exemption.
High voltage harness, reduction gear, battery cooling system, and regenerative braking system are additions to the BOI’s list of key EV parts. Manufacturers of these components are all exempt from corporate taxes for eight years. The BOI grants further incentives for the production of both battery modules and battery cells. Moreover, it includes a 90% decrease in import tariffs for two years on raw materials not accessible locally. All these plans intend to stimulate local EV battery production.
Previous BOI Announcements for Thai EV-Industry
Previously 26 electric vehicle manufacturing projects got BOI approval. Moreover, these projects had a cumulative annual production capacity of more than 566,000 units. Five are for hybrid electric vehicles (HEVs), six for plug-in hybrid electric vehicles (PHEVs), thirteen for battery electric vehicles (BEVs), and two for electric buses.
Nissan, Honda, and Toyota are doing commercial operations for HEVs. Mercedes Benz and BMW are set to begin commercial operations for PHEVs. Whereas newcomers FOMM and Takano are operating commercially for BEVs. Additionally, 14 projects to manufacture crucial parts for electric vehicles, including 10 battery manufacturing factories also got BOI approval recently.
Why Start Business in Thailand in EV-Industry?
The BOI is considering extending investment privileges to the electric motorcycle and tricycle industries. This is to boost the manufacturing and use of electric vehicles in the country.
“We are encouraging investment in the electric vehicle industry since 2017, but it’s limited to four-wheel vehicles and buses,” according to BoI Secretary-General Duangjai Asawachintachit. “The board is presently working on the terms and criteria for promotional benefits to be provided to entrepreneurs of electric bikes and tricycles, which are gaining popularity in the home market.”
According to Duangjai, 26 projects related to the manufacture of electric vehicles has BOI approval till now.
These consist of:
- Five hybrid electric car projects with a total investment of THB50.3 billion. Additionally, they have a production capacity of 352,500 units per year.
- Six plug-in hybrid electric car projects with a total investment of THB11.4 billion with an annual production capacity of 87,240 units.
- Thirteen battery electric vehicle projects at THB15.6 billion, with a production capacity of 125,140 units per year.
- Two electric bus projects with a total investment of THB665 million and an annual production capacity of 1,600 units.
Moreover, 14 projects of total investment worth of THB10.8 billion got BOI approval recently. These projects aim to manufacture electric vehicle parts and facilities, including battery and charging stations.
If you are also willing to start a business in Thailand, claim your market share in the EV Industry. For all types of support and Business registration services in Thailand, email us at [email protected].
