Update on the New Investment Promotion Packages (EV Battery Management and/or Energy Storage, Data Hosting, Quarantine Facilities for Animals for Export) and the New Investment Promotion Measure to Enhance the Automotive Part Industry (Thailand)

I. Newly added BOI Businesses※2

(i) EV battery management and/or energy storage

Businesses related to EV battery management and/or energy storage have been added to the BOI promotional businesses to further develop Thailand’s comprehensive EV battery administration and management system and to support the entire EV ecosystem. Details of the conditions and incentives of each business can be summarized as follows:

(ii) Data hosting

To support the rising demand for data hosting and the development of the digital industry in Thailand, the BOI has added a data hosting business as a new BOI promotion category. The material conditions and incentives are as follows:

(iii) Quarantine facilities for animals for export

To prepare for the growth of Thailand’s international livestock market, the BOI has also added a promotion category for quarantine facilities for animals for export. To be eligible for the BOI promotional business under this category, the quarantine facilities must be certified pursuant to the standards of the Department of Livestock Development or relevant authorities. The project will be entitled to a 3-year CIT exemption.

II. Investment Promotion Measure to Enhance the Automotive Part Manufacturer Industry※6

As the BOI’s aim is to stimulate and encourage automotive part manufacturers to enhance their ability to compete in terms of production and to prepare to transition to a new industry, the BOI approved this Investment Promotion Measure to Enhance the Automotive Part Manufacturer Industry. In this regard, to be eligible for this BOI measure, applicants must be engaged in activities that fall under one of the following BOI promoted business categories:

• Category 3.4: Manufacture of engines, equipment or parts; and
• Category 3.5: Manufacture of automotive parts.

In addition, existing projects that have already received BOI promotion as well as new projects may apply for this BOI measure. The details of the material conditions and incentives are as follows:

Material Conditions

• The investment value of the project must be not less than THB 1,000,000, excluding the cost of land and working capital.
• The investment value or expenses includes the cost of the machinery and equipment, the application of the standards used in the new industry, the advisory fees for enhancing production or changing to the new industry, the fees for training personnel in technical fields or any programs related to industry enhancement, the software programs or information systems used and the lease/use of cloud or data center services.
• The applicant must propose a plan for investment to enhance the automotive part industry and/or transition to the new industry based on the criteria prescribed by the BOI, such as changing machinery to enhance production efficiency, applying the standards used in the new industry, training personnel in technical fields or any programs related to industry enhancement, etc.
• The applicant must submit the application by the last business day of 2025.

Tax Incentives

• The project will be entitled to an exemption on import duties for machinery.
• The project will be entitled to a 3-year corporate income tax exemption for 50% of the investment capital for enhancing the relevant industry, excluding the cost of land and working capital. If such project uses machinery that is related to or supports the domestic automated machinery manufacturing industry and such machinery is not less than 30% of the value of the machinery that is changed, the project will be entitled to a 3-year corporate income tax exemption for the proportion of 100% of the investment capital for automation and robotics, excluding the cost of land and working capital.
• The exemption period will start from the date revenue is derived after the BOI certificate is issued, and the project must be completed within 3 years from the date on which the BOI certificate is obtained.

Should you require further details in respect of any measures or wish to receive further updates, please feel free to contact us.