The BOI has announced promotions for an extended range of businesses involved in the manufacture of Printed Circuit Boards (PCB). In order to support the potential massive relocation of production bases due to current global geopolitical pressures, especially in high-tech industries such as electronics, the BOI are expanding the scope of business activities eligible for investment promotion in the PCB sector tosupport businesses in the supply chain, such as:
- Production of raw materials essential for PCB production, such as Copper Clad Laminate (CCL), Flexible Copper Clad laminate (FCCL), and Prepreg;
- PCB manufacturing support, including lamination, drilling, plating, and routing; and
- Production of materials such as Dry Film, Transfer Film, and Backup Board, for use in PCB manufacturing.
A promoted company operating these businesses would be eligible for up to eight years of corporate income tax exemption, exemption from import duties on machinery, exemption from import duties on raw materials used in production for export, and other non-tax incentives as summarized below.
Business activity | Incentives | |
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Key conditions and exemption from corporate income tax | Other incentives | |
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4.2.4.7 Manufacture of raw materials or other essential materials for manufacturing of Printed Circuit such as Dry Film, Transfer Film, Backup Board etc. |
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According to the BOI’s announcement, in 2023, the BOI approved investment promotion benefits for some 40 companies under the PCB project, representing a combined investment of USD2.66 billion, or around THB96 billion. KPMG witnessed last year's investment in the electronics industry firsthand, by assisting and advising companies in relocating their production sites from overseas to Thailand, and anticipates that the BOI’s enhanced support for the PCB industry will attract further direct investment in Thailand.
With our extensive experience assisting a wide range of clients with BOI applications and relocation of production bases, KPMG can provide legal and tax advice and assistance with the government’s mandatory approval process.
Please feel free to contact us for more information.