BOI to provide tax exemption of up to 100%, investment in “automation”, production speed
BOI recommends entrepreneurs to invest in automation systems increase production efficiency strengthening supply chain Ready to support the Thai economy recovering after covid-19 Give the right to exemption from corporate income tax up to 100%, revealing 6 months, has a project to apply for a promotion in accordance with measures to improve production efficiency The investment value is over 11 billion baht.
Ms. Duangjai Asawachintachit Secretary-General of the Board of Investment (BOI) revealed that the BOI’s investment promotion It is not aimed at promoting only new investment projects. But there are measures to promote entrepreneurs who have already invested in increasing or improving production efficiency as well. which under the situation of the epidemic of the coviral-19 affecting the overall economy Implementation of automation and robotics to help reduce operating costs is another measure of the BOI that will increase the competitiveness of Thai entrepreneurs Once the situation has resolved, it will be possible to recover quickly for production efficiency improvement measures for machine modification. By introducing automation and robots to increase production efficiency. The BOI will provide benefits such as exemption of import duty on machinery. 3-year corporate income tax exemption in the proportion of 50% of investment (excluding cost of land and working capital)
In addition, to support the domestic automation and robotics manufacturing industry Most of them are Thai SMEs entrepreneurs in the event that the project chooses to use automation and linked robots. or support domestic automation manufacturing industry for not less than 30% of the modified automation value will be exempted from corporate income tax for 3 years in the proportion of 100% of investment (excluding cost of land and working capital) for investment promotion measures to improve production efficiency In addition to investments in machine modifications There are still investment measures to save energy. Investments in R&D and Engineering Design Investment to upgrade the agricultural industry to international standards. and investment in the digital system to be used in the production process as well which will be exempted from corporate income tax for 3 years in the proportion of 50% of investment (excluding cost of land and working capital) as well
For example, Sripursue Forging Technology Co., Ltd., a manufacturer of automotive parts. That has been approved to promote measures to improve production efficiency from the BOI recently. The company was moderately affected by the drop in orders. The company sees this period as a good time to invest in changing machinery to increase production efficiency. by using robots in the process of picking up workpieces speed up Reduce costs in the production process and to increase competitiveness together with the promotion measures from the BOI causing the company to be exempt from corporate income tax thus enhancing the Company’s business potential in the future “in the automotive parts manufacturing industry We need to find ways to increase efficiency and reduce production costs every year. to be able to compete Previously, the company had applied for the promotion under this measure. in terms of using renewable energy which can save a lot of electricity bills We see the benefits accrued under these measures. therefore submitted a request for additional promotion of machinery modifications by bringing in automation And we use machines developed in the country. Thus, 100% corporate income tax exemption helps to save operating costs. It is considered a measure that helps entrepreneurs a lot in the current situation,” said Mr. Chalermrat. During the six months (Jan.-June) of 2020, there was a project to apply for investment promotion according to measures to improve efficiency. Produce a total of 88 projects with a total investment of 11,020 million baht, divided into 67 projects to improve production efficiency for energy saving, with an investment of 9,260 million baht, and measures to improve production efficiency for machinery modification, in the amount of 21 projects, with an investment of 1,760 million baht.