Thailand—did you know your company may receive incentives for improving production efficiency by upgrading or replacing your machinery?

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Don’t let your efforts go to waste—if your company has a plan to incorporate energy conservation, alternative energy utilization or environmental impact mitigation, you should consider pursuing a compensation package as your project may be eligible.

What types of investment activities are considered?

A project must invest in:

  • Upgrading machinery to modern technology that helps to reduce energy consumption at the stipulated ratio; or
  • Upgrading machinery to use alternative energy at the stipulated ratio to total energy consumption; or
  • Upgradingmachinery to reduce environmental impact – reducing waste, wastewater or exhaust air – according to the stipulated criteria; or
  • Upgrading a production line to an automation system for production efficiency improvement according to the stipulated criteria.

Who can apply—BOI vs Non-BOI?

Both existing Board of Investment (BOI) promoted projects and non-BOI promoted projects with an investment of over 1 million baht can apply for incentives. However, for a BOI-promoted project, the application can only be submitted after the corporate income tax (CIT) reduction or exemption privilege period has ended or if the project has never received any CIT benefit.

What incentive packages are available?

Qualified projects will benefit from:

  • 3 year CIT exemption on 50% of the investment
    • In the case of investment in automation systems, the CIT cap will be increased from 50% to 100% of the investment if the value of linkages to the Thai automation industry reaches at least 30% of the total value of the automation system.
  • An exemption of import duties for machinery.

How can Tractus help?

For over 25 years, Tractus has been assisting companies pursue investment incentives not only in Thailand, but also across the rest of Asia and beyond. We have proven experience advising companies on their business strategy locally and internationally, helping them to identify and pursue their optimal potential incentive packages. Let us show you how we can support you to make your next endeavor a success.


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