BOI Thailand Benefits for Commercial Fleet Owners in Thailand

 

What’s the Scheme?

Thailand's National Electric Vehicle Policy Committee has implemented tax incentives to facilitate the shift from commercial fleets of large trucks and buses to battery-powered electric vehicles (BEVs).

Key Takeaways

• To encourage the adoption of electric trucks and buses, Thailand's EV Board approved tax incentives that target reducing pollution and supporting companies' net-zero goals.
• By providing special tax deductions to companies purchasing electric trucks and buses and financial support to battery cell manufacturers, the nation is positioning itself as a hub for EV manufacturing.
• With over 78,000 registered EVs benefiting from tax discounts and subsidies, the EV3 program, which promotes EV passenger cars, has already demonstrated success. Participating companies are, however, required to manufacture locally.

The News in detail!

In a move to promote the adoption of electric vehicles (EVs), the Thailand National Electric Vehicle Policy Committee (EV Board) has implemented several incentives. Firstly, tax incentives have been approved to encourage companies to switch their large commercial trucks and buses to battery-electric vehicles (BEVs). Secondly, cash grants will be provided to manufacturers of EV battery cells. These policies aim to expand Thailand's support for the entire EV ecosystem and strengthen its position as a significant hub for EV manufacturing in the region.

To promote eco-friendly practices, reduce pollution, and position Thailand as a significant player in the EV manufacturing industry, a series of incentives have been introduced. These incentives provide special tax deductions for companies procuring electric trucks and buses to support their progress towards net-zero emissions targets. Additionally, cash grants are offered to manufacturers of EV battery cells, facilitating the development and production of these essential components.

Thailand plays a substantial role in the automotive industry, positioning itself among the top 10 countries worldwide regarding automotive production and total exports. Notably, Thailand stands out in Southeast Asia as the first country to provide special incentives for both the supply and demand sides of electric vehicles (EVs). Through the 30@30 policy, Thailand has established a clear goal: to have at least 30% of domestically-produced cars be EVs by the year 2030.

Eligible companies will receive a special tax deduction to encourage the purchase of electric-powered buses and trucks. For vehicles manufactured domestically, companies can deduct expenses up to twice the actual price, with no upper limit. Imported vehicles will qualify for a deduction of 1.5 times the actual price.

Eligibility to avail of the Benefits

The eligible large electric vehicles include container trucks, liquid trucks, hazardous substance trucks, special trucks, tow trucks, as well as both air-conditioned and non-air-conditioned electric buses.

Furthermore, the EV Board also approved a plan to promote local manufacturing of battery cells for EVs and energy storage systems (ESS). Financial support will be provided through Thailand’s Competitiveness Enhancement Fund, along with other benefits available under the Competitiveness Enhancement Act for companies meeting specific criteria.

To qualify for investment promotion under this scheme, a company must meet the following requirements:

• Being a leading and well-recognized battery manufacturer providing batteries to EV manufacturers;
• Having a clear plan to produce battery cells for batteries used in EV, and also if possible to produce battery cells for batteries used in ESS;
• The batteries must have a high energy density of not less than 150 Wh/kg;
• The battery must have a life cycle of not less than 1,000 cycles, counting from 70% of the nominal capacity at a depth of discharge of not less than 80% at a test temperature of 20-25 degrees Celsius.

These measures are expected to significantly increase the adoption of electric trucks and buses, reduce pollution from transportation and manufacturing sectors, and support companies’ efforts to achieve their net-zero targets.

EV Sector Update

The meeting also heard an updated report on the EV3 measures to promote the use of EV passenger cars.

Statistics as of 31 January 2024 show that, since the scheme started in 2022, a total of 14 manufacturers and importers of BEV cars and pickups have registered a total of 78,554 EV cars to enjoy the excise tax discounts and subsidies. According to the conditions of the EV3 scheme, these companies will have to produce in Thailand at least one vehicle for each vehicle imported.

What it has for you?

If you already own a fleet of commercial vehicles, now is the time to upgrade yourself. In addition to gaining tax incentives, you can enjoy special deductions in the prices. You must note that the scheme is open to both local and global investors in Thailand.

In addition to supporting the fleets, BOI also aims to promote the EV Industry as a whole starting from the manufacturing segments. Read our article on BOI Promotion for the EV Industry in Thailand.

Are these benefits applicable to all global investors and are you eligible to apply for BOI Thailand promotions?

1. What are the steps of getting a BOI Thailand Promotions Certificate?
2. What to do before and after registering your BOI Company in Thailand?

To get answers to such or more complicated questions, you must consult with a leading corporate law firm in Thailand with experience in BOI Company Registration.

For direct support, feel free to email us at officer@konradlegal.com.

How to hire a Business Law Firm in Thailand?

As Thailand solidifies itself as a Southeast Asian business and investment hub, entrepreneurs, and companies alike must navigate its intricate legal landscape. To ensure adherence to laws, mitigate potential risks, and facilitate seamless operations, choosing a trusted business law firm in Thailand is vital. In this article, we delve into the critical factors businesses should consider when selecting a legal partner in Thailand.

Before you move into searching for a trustworthy business law firm in Thailand, you must be ready with your homework. This means, that you must know what exactly you want to do in Thailand. As a leading corporate law firm in Thailand for more than a decade, we often meet clients who are confused about their pristine requirements. You must understand that the level of compliance necessary to do business in a foreign land is very different from that in your country.

Ask yourself whether you are looking for assistance with company formation in Thailand, contract drafting, intellectual property protection, or litigation. Clarifying your requirements will help narrow down your search and find a law firm with the expertise to meet your needs. 

Based on your requirements, you must consult with a law firm of the following categories:

Corporate law firms: These are law firms catering to corporations that provide expert counsel on legal matters. These firms assist businesses throughout their lifecycle, from the initial setup to contract negotiations and dispute resolution.

Intellectual property law firms: These firms specialize in providing counsel to businesses on intellectual property matters, encompassing trademarks, copyrights, and patents. They assist businesses in safeguarding their intellectual property and upholding their intellectual property rights.

Family law firms: Family law firms focus on offering legal advice and guidance to individuals in various aspects of family law. These matters may include divorce, child custody, child support, and other family-related legal issues. These law firms ensure the protection of client’s rights and assist them in reaching satisfactory resolutions within the framework of the law.

Litigation law firms: Firms specializing in litigation law represent clients in court proceedings. These firms assist clients in resolving various legal disputes, including business conflicts, personal injury cases, and criminal matters.

Fortunately, if you are reading this article, you may get all these services in one place. Contact the leading business law firm in Thailand that holds multiple specializations for local as well as global investors in Thailand.

If not us, while looking for a corporate or business law firm in Thailand, ensure that your selection process undergoes the following stages;

Expertise and Specialization Analysis

When evaluating law firms, consider their expertise and specialization in business law. Look for firms with a proven track record in corporate law, commercial transactions, regulatory compliance, and other relevant areas. A firm with specialized knowledge and experience in your industry can provide tailored legal solutions to address your unique challenges and opportunities.

Check Reputation and Experience

Research the reputation and experience of potential law firms in Thailand. Look for firms with a solid reputation for professionalism, integrity, and successful outcomes. Consider factors such as the firm’s tenure in the industry, client testimonials, case studies, and awards or recognitions received.

Ensure they have Local Knowledge and Connections

Choose a law firm with a deep understanding of the local legal system, regulations, and business practices in Thailand. A firm with local knowledge and connections can navigate complex legal issues more effectively and provide strategic advice tailored to the Thai market. Additionally, a firm with a network of contacts in government agencies, industry associations, and other key stakeholders can facilitate smoother business operations and transactions.

Ease of Communication and Accessibility

Effective communication is crucial when working with a law firm. Evaluate the firm’s communication channels, responsiveness, and accessibility. Choose a firm that values clear and timely communication, understands your business goals, and keeps you informed throughout the legal process. Accessibility to key personnel, such as partners or senior attorneys, is also essential for building a strong client-lawyer relationship.

Compare Fee Structure and Check Transparency

Discuss the fee structure and billing practices with potential law firms upfront. Transparency regarding fees, billing rates, and payment terms is essential to avoid surprises and ensure a clear understanding of costs. Consider whether the firm offers alternative fee arrangements, such as fixed fees or capped fees, that align with your budget and preferences.

Personal Chemistry and Fit

Lastly, consider the personal chemistry and fit between your team and the law firm. Building a strong working relationship based on trust, mutual respect, and open communication is crucial for a successful partnership. Schedule initial consultations or meetings with potential law firms to assess compatibility and ensure a good fit for your business needs.

Selecting a reliable business law firm in Thailand is a critical decision that can significantly impact your business’s success and longevity. By carefully evaluating factors such as expertise, reputation, local knowledge, communication, and fit, you can choose a legal partner who understands your business objectives and helps you navigate the complexities of the Thai legal landscape with confidence.

To get an all-round consultation on starting a business in Thailand, email us at officer@konradlegal.com for full support and assistance on the following:

• Drafting MOA, MOU, AOA, and Partnership Agreements
• Executing Power of Attorneys
• Translation and Notary Services
• Company Registration Process including Board of Investment Promotions
• Bookkeeping, Accounting, Tax, and Payroll support post your company incorporation