Corporate Tax Incentives Approved for Purchase of E-Buses, E-Trucks
HLB Thailand Tax Team
Thailand's National Electric Vehicle Policy Committee has approved, in principle, to grant tax incentives for the purchase of electric buses and electric trucks, to support the business sector in reducing carbon emissions.
The measures will grant companies or juristic partnerships a 200% deduction for corporate income tax purposes for the purchase of electric buses and electric trucks that are produced or assembled within the country. In the case of ready-made cars imported from abroad, a 150% deduction will be allowed. The measures will be effective until the end of 2025.
The Committee has assigned the Ministry of Finance to consider the guidelines and procedures to implement the measures.
The Committee also approved measures to promote investment in the production of battery cells for electric vehicles and energy storage systems, to attract battery cell manufacturers to invest in Thailand. An investor can apply for investment privileges and funding from the National Competitiveness Enhancement Fund under the Board of Investment (BOI). Investment project proposals must be submitted by the end of 2027.
The basic conditions to be met by investors are:
- must be a leading battery manufacturer for electric vehicle manufacturers;
- must have a plan for producing battery cells for electric vehicles and must also be able to produce battery cells for energy storage systems;
- battery cells must be produced with a specific energy value of not less than 150 Wh/Kg; and
- batteries must have a life cycle of at least 1,000 cycles.
