On 13 January 2021, the Board of Investment (BOI) announced a two-year extension of corporate income tax exemptions granted to activities in Group B for the use of automated systems or robots. Qualifying projects must submit an application for the tax exemption to the BOI by 30 December 2022.
Under the BOI, Groups B1 and B2 comprise supporting activities that do not utilize high technology, but are still important to the value chain. Eligible projects may enjoy the following exemptions:
1. Projects that employ automation or robotics systems in their manufacturing activities may enjoy a three-year corporate income tax exemption of up to 50% of the investment capital (excluding the cost of land and working capital).
2. To promote the growth of the local automation sector, if at least 30% of the value of the automation system has a connection with the Thai automation industry, then the project may enjoy a corporate income tax exemption of up to 100% of the investment capital (excluding the cost of land and working capital).
Certain Group B activities are excluded from obtaining the corporate income tax exemption. Such activities include e-commerce (Category 5.8), general automobile manufacturing (Category 4.6), motorcycle manufacturing (Category 4.12), the operation of natural gas stations (Category 7.2), Trade and Investment Support Offices (Category 7.7), co-working spaces (Category 126.96.36.199), and International Business Centers (Category 7.34).