Thailand offers new investment incentives to lift economy
BANGKOK - Thailand's Board of Investment has announced a range of new incentives to promote additional business activities as the country moves to alleviate the impact of COVID-19. Lawyers Baker McKenzie summarise the incentive areas as follows:
1. Measures to promote investment to reduce carbon footprint:
In transitioning Thailand to become a low carbon economy, the BOI will implement/update the following measures:
- to promote/update three business activities, namely, (i) gas separation plant, (ii) cold storage room and mobile cold storage unit, which use natural refrigerants, and (iii) production of petrochemicals, which use Carbon Capture, and Storage and Utilisation technology in its business operations;
- to grant an additional 3-year CIT exemption in the amount of 50% of the investment value to existing projects that change their current machinery to reduce carbon emissions; and
- to expand the investment promotion measure for grassroots economy (which provides an additional 3-year CIT exemption in the amount of 120% of eligible investment) to include projects that will support local organizations with an aim to promote sustainable agriculture and extend the application period to be until the last working day of 2022.
2. Measure to promote development of Thailand as a regional EV hub:
Additional investment promotion measure for the following business activities:
- Production of Battery Electric Vehicle (BEV) platform (including the production of Energy Storage System, Charging Module and Front and Rear Axle Module); and
- Production of electric bicycle (E-Bike).
3. Measure to alleviate the impact of COVID-19:
The BOI will relax and extend the following application deadlines for all projects:
- extension by six months the period to obtain international standard certification (e.g., ISO 9002 and CMMI certification
The BOI will also allow the promoted projects that provide financial assistance to academic institutions, R&D institutes, or governmental agencies to apply for merit-based incentives.
For more details, contact Baker McKenzie.