BOI Announcement No.1/2564, regarding promoting investment to improve the efficiency of energy conservation, alternative energy utilization or environmental impact mitigation, upgrading and replacing machinery, research and development or engineering design, and upgrading of production line to acquire international sustainability certification.

This measure is used with:

1. Existing projects, whether BOI or non-BOI promoted. In the case of non-BOI promoted projects the activity must be eligible for investment promotion by the Board of Investment.

2. BOI promoted projects can also apply for this measure when the corporate income tax exemption or reduction period expires, or in case the respective project(s) does not receive a corporate income tax exemption.

Conditions

1. The minimum capital investment must not be less than 1 million Baht (excluding cost of land and working capital).

2. The application must be submitted by December 30, 2022, and project must complete implementation within three years from the date the promotion certificate is issued.

1. Measure to improve the efficiency of energy conservation, alternative energy utilization or environmental impact mitigation

The applicant must submit an investment plan for machinery change or upgrade to save energy, to introduce alternative energy into the project, or to reduce environmental impact by implementing one of the following:

1. Project must invest in upgrading machinery to modern technology that reduces energy consumption at the stipulated ratio.

2. Project must invest in upgrading machinery to use alternative energy at the stipulated ratio to total energy consumption.

3. Project must invest in upgrading machinery to reduce environmental impact; namely, reducing waste, waste water or exhaust air, according to the stipulated criteria.

Incentives

1. Exemption of import duty for machinery.

2. 3-year corporate income tax exemption on the revenue of an existing project,  accounting for 50 percent of the investment under this measure (excluding cost of land and working capital).

3. Corporate income tax exemption period shall start from the date of revenue derivation after promotion certificate is issued.

List of activity is not eligible for a promotion under Measure to promote energy conservation, alternative energy utilization  or reduction of environmental impact such as:

- 5.8 E-commerce

- 7.5 International Headquarters: IHQ

- 7.6 International Trading Center: ITC

- 7.7 Trade and Investment Support Office: TISO

2. Measure to promote improvement in efficiency by upgrading and replacing machinery

The applicant must submit an investment plan for machinery replacement or upgrade according to the stipulated criteria, or instance, an upgrade of a production line to an automation system for production efficiency improvement.

Incentive

1.  Exemption of import duty on machinery.

2. Three-year corporate income tax exemption on the revenue of an existing project, with corporate income tax exemption cap not exceeding 50 percent of the investment capital (excluding cost of land and working capital)

3. In case of investments in automation systems, the corporate income tax exemption cap will be raised to 100% of the investment excluding land cost and working capital if the value of linkages to the Thai automation industry reaches at least 30% of the total value of the automation system.

4. Corporate income tax exemption period shall start from the date of revenue derivation after promotion certificate issuance.

This category is not eligible for a promotion under the measure to promote improvement in production efficiency by upgrading and replacing machinery for manufacturing according to Measures to Promote Improvement of Production Efficiency such as:

-  4.6 Manufacture of general automobile

-  4.12 Manufacture of motorcycle (except less than 248 cc engine displacement)

-  4.16 Manufacture of Hybrid Electric Vehicle (HEV) and parts

-  5.8 E-commerce

-  7.2 Natural gas station

-  7.5 International Headquarter: IHQ

-  7.6 International Trading Center: ITC

-  7.7 Trade and Investment Support Office: TISO

3. Measure to improve the efficiency of research and development or engineering design

The applicant must submit an investment plan for research and development or engineering designs according to the stipulated criteria. Investment or expenses on research and development or engineering design must not be less than one percent or less than 0.5 percent for SMEs of the total sales over the first three years counting from the submission date of investment promotion application.

Incentive

1. Exemption of import duties on machinery.

2. Three-year corporate income tax exemption on the revenue of an existing project, with corporate income tax exemption cap not exceeding 50 percent of the investment capital (excluding cost of land and working capital).

3. Corporate income tax exemption period shall start from the date of revenue derivation after promotion certificate issuance.

This category is not eligible for a promotion under Measure to promote the investment on research and development and engineering designs for efficiency improvement such as:

- 5.8 E-commerce

- 7.5 International Headquarters: IHQ

- 7.6 International Trading Center: ITC

- 7.7 Trade and Investment Support Office: TISO

4. Measure to improve the efficiency of upgrading production line to acquire international sustainability certification

The applicant must propose Investment plans to upgrade agroindustry to meet international standards must be submitted, for instance, Good Agriculture Practices (GAP), Forest Stewardship Council (FSC), Program for the Endorsement of Forest Certification Scheme (PEFCS), Food Safety Management System (ISO 22000), Sustainable Forest Management System (SFM, ISO 14061) or other equivalent international standards. Investment or expenditures according to the plans is required and such international standards must be achieved within 3 years after issuance of the investment promotion certificate.

Incentive

1.  Exemption of import duties on machinery.

2. Three-year corporate income tax exemption on the revenue of an existing project, with corporate income tax exemption cap not exceeding 50 percent of the investment capital (excluding cost of land and working capital).

3. Corporate income tax exemption period shall start from the date of revenue derivation after promotion certificate issuance.

5. Efficiency enhancement Measure for Digital Technology Adoption

The applicants must submit an investment plan of adopting digital technology to upgrade the operation process according to the stipulated criteria in order to enhance the efficiency of manufacturing or service in any of the following cases.

-  Adoption of software, program or information technology with systematic link that interconnects different functions inside the organization (integrated) and partly outside the organization (connected) or both inside and outside the organization.  The software must perform at least 3 functions and form data link among them, which enhance resource management and to increase the efficiency of manufacturing or service.

-  Applying artificial intelligence (AI), machine learning, and utilizing big data or data analytics.

-  Adoption of software, program or information technology for that connects and exchanges data between the company’s system and the online system of public sector, e.g. a link with national e-payment system, etc. as approved by the Board of Investment.

Incentive

1.  3-year corporate income tax exemption on the revenue of an existing project with a cap equivalent to 50 percent of the investment capital (excluding cost of land and working capital).

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

The application for investment promotion must be submitted within the last working day of 2022.

For further information, please download Announcement of the Board of Investment No. 1/2564 and Announcement of the Board of Investment No. 4/2564.