The Thai government has revised its incentive programme for investments in electric and hybrid vehicles as it looks to establish the country as the main zero emissions production hub in south east Asia.
In order to receive the full incentives from the Board of Investment, manufacturers will need to spend a minimum of THB5bn (US$167m).
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Investors in battery powered electric vehicles will receive a maximum eight year corporate income tax (CIT) exemption and a maximum of 11 years of CIT exemption for R&D investments.
For investors in plug in hybrid vehicle production, the CIT exemption will last just three years while, for other hybrid vehicle investments, there will be no tax exemption.
For investments of less than THB5bn, companies looking to produce battery powered electric and plug in hybrid vehicles will qualify for a three year tax exemption.
For battery powered truck and bus production, investors will also receive a three year CIT exemption.
The BOI included four additional components to the list of recognised EV parts covered in its incentive programme, namely high voltage harnesses, reduction gears, battery cooling systems and regenerative braking systems.
