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Investment Promotion Measure to Upgrade Automotive Industry

To encourage automotive industry entrepreneurs to adopt automation and robotics in order to enhance production efficiency for both conventional and electric vehicles. This covers both existing projects and new investments, with the goal of improving production efficiency and supporting the transition towards becoming a hub for modern, technology-driven automotive manufacturing.

Scope of business categories eligible for investment promotion

  • Category 3.6 The manufacture of general automobiles
  • Category 3.8 The manufacture of battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs) and BEV platforms (only the manufacturing activities of plug-in hybrid electric vehicles (PHEVs) and hybrid electric vehicle (HEVs)

  • Conditions for applying for investment promotion

    ✓ Existing projects, with or without investment promotion

    ✓ New investment projects

    In the case of existing BOI-promoted projects

    The applicants may apply for promotion under this measure when the benefits of corporate income tax exemption have expired, or the projects have never received the corporate income tax exemption.

    Scale of investment

    The applicants must have a minimum investment of 1 million baht, excluding the cost of land and working capital

    Investment plan

    The applicants must submit a plan for investment in the automation system or robotics to support the manufacturing process according to the criteria specified by the Office.

    Product development plan

    The applicants must submit an automotive product development plan that utilizes technologies aimed at cleanliness, energy efficiency, safety, intelligent driving, or other appropriate technologies.

    Determination of eligible investment value for the project

  • The investment or expenditure on machinery and equipment shall be counted in full.
  • The investment or expenditure on utilizing software, program or information technology and renting/using cloud service or data center, shall be categorized and counted according to the following two cases.
  • Case 1: The following investment or expenditure shall be counted in full:

  • The investment or expenditure on utilizing software, program, or information technology that integrated with machinery or equipment to manipulate, control, and support the manufacturing system.
  • The investment or expenditure on applying Artificial Intelligence (AI) or machine learning, and utilizing big data and data analytics.
  • The investment or expenditure on utilizing software, program, or information technology for enterprise management which is developed or improved by entrepreneurs in Thailand certified by related agencies.
  • The expenditure on renting/using cloud services or data centers in Thailand
  • Case 2: The following investment or expenditure shall be counted as half

  • The investment or expenditure on utilizing software, program, or information technology for enterprise management which is developed or improved by entrepreneurs in Thailand not certified by related agencies, or entrepreneurs in foreign countries
  • The expenditure on renting/using cloud service or data center in foreign countries

  • Privileges and Incentives

    1. 3-year corporate income tax exemption with a cap equivalent to 50 percent of the investment capital in automation and robotics, excluding the cost of land and working capital.

    In the case of existing projects

    In the case of new investment projects

    The corporate income tax exemption period on the revenue of existing project shall start from the date of revenue derivation after the promotion certificate is issued.

    The new investment of automation system or robotics are utilized in the production line, which link or support to domestic automation industry not less than 30 percent of the total value of the automation system and robotics, shall be granted 3-year corporate income tax exemption with a cap equivalent to 100 percent of the value of automation system or robotics in the project, excluding the cost of land and working capital.

    2. Exemption of import duties on machinery

    Applications for investment promotion must be submitted by the last working day of 2025, and the project must be completed within 3 years from the date of investment promotion certificate issuance.

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