On August 8, the Thailand Board of Investment (BOI) stated that Thailand has approved a series of incentive measures to vigorously promote joint ventures between domestic and foreign companies to produce auto parts.
The Investment Commission of Thailand said that new joint ventures and existing parts manufacturers that have already enjoyed preferential treatment but are transforming into joint ventures are eligible for an additional two years of tax exemption if they apply before the end of 2025, but the total tax exemption period is It shall not exceed eight years.
At the same time, the Thailand Investment Commission said that in order to qualify for the reduced tax rate, the newly established joint venture must invest at least 100 million baht (approximately US$2.82 million) in the field of auto parts manufacturing, and must be jointly owned by a Thai company and a foreign company. Formation, in which the Thai company must hold at least 60% of the shares in the joint venture and provide at least 30% of the registered capital of the joint venture.
The above-mentioned incentives are generally aimed at building Thailand's strategic drive to position the country at the heart of the global automotive industry, especially to assume a major position in the fast-growing global electric vehicle market. Under this initiative, the Thai government will strengthen cooperation between Thai companies and foreign companies in technology development to maintain Thailand's competitiveness in the Southeast Asian automotive industry.
Thailand is Southeast Asia's largest automotive production center and an export base for some of the world's top automakers. Currently, the Thai government is vigorously promoting investment in electric vehicles and has introduced a series of incentives to attract large enterprises. These incentives have attracted significant foreign investment in recent years, particularly from Chinese manufacturers. As the "Detroit of Asia", the Thai government plans to make 30% of its automobile production come from electric vehicles by 2030. In the past two years, investments by Chinese electric vehicle manufacturers such as BYD and Great Wall Motors have also brought new vitality to Thailand's automobile industry.
Post time: Aug-12-2024