Thailand BOI Expands Incentives to Strengthen Local Content in EV and E&E Production

The Board today approved promotion measures aiming to increase the use of local content in the manufacturing of battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), as well as electrical appliances, by offering an additional 2-year 50% corporate income tax reduction (CIT) to companies meeting the criteria and conditions.

To qualify for the tax benefits, the manufacturers of EV and related electric vehicle components must use locally made parts with a combined value of not less than 40% of the total value of raw materials for BEV, and not less than 45% for PHEV.

For the E&E sector, companies must fall under the smart electrical appliance and electric appliance manufacturing categories and must use locally made parts with a combined value of not less than 40% of the total value of raw materials.

Qualified applicants can be either existing BOI promoted projects whose original CIT exemption privileges have not expired, or new investment projects. The manufacturers must also be certified “Made in Thailand” (MiT) by the Federation of Thai Industries (FTI) to qualify.

Source : ○ BOI : The Board of Investment of Thailand