Thailand adopts new tax incentives for industry and automation investments

The Thailand Board of Investment on October 11 approved new tax incentives to encourage companies to invest in productivity enhancement and automation to speed up its “Industry 4.0” initiative.

The incentives include a three-year corporate income tax exemption covering 100% of investments in Industry 4.0 upgrade. This new measure supplements the already existing schemes to boost productivity, automation, and digital technology in Thailand.

Industry 4.0 is a term used to describe the digital transformation of manufacturing, including all the current trends in automation, data exchange technologies and digital services like cloud computing (IaaS, PaaS or SaaS), internet of things (IoT), Cyber-physical system (CPS) or cognitive computing (CC).

Companies will have to submit their investment plans to apply for the benefits. Applications will be accepted until the end of 2022. The BOI will be co-operating with the National Science and Technology Development Agency (NSTDA) on this effort as NSTDA will help assess and advise the Industry 4.0 transformation investment plans that the companies will be required to submit. If approved, eligible companies will have to implement their upgrade plans within three years.

The BOI also extended until the end of 2022 existing special investment promotion stimuli for small and medium-sized enterprises. If you want to know more about these incentives and see if your company is eligible for other government benefits, do not hesitate to contact our team in Bangkok at contact@orbis-alliance.com.