28 June 2017
THAILAND: Eight-year Tax Waiver on Manufacture of Electric Vehicle Components
Manufacturers of certain electric vehicle (EV) components are now eligible for a corporate income tax (CIT) waiver of up to eight years. More specifically, the tax exemption applies to companies engaged in the production of traction motors, DC-to-DC converters, batteries, inverters, battery management services, portable electric vehicle chargers, electrical circuit breakers, and EV smart charging systems.
Should any such manufacturer also be based in the Eastern Economic Corridor (EEC), which straddles the three coastal provinces of Chachoengsao, Chonburi and Rayong, they will further qualify to pay CIT at 50% of the normal rate for an additional five-year period following the initial tax-free eight-year period. These new incentives follow an earlier government move to cut the chargeable excise tax for EVs.
Manufacturers have until 29 December 2017 to apply for these new waivers.