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Last updated : April 10, 1997

Section 4) Manufacture of Metal Products, Machinery, and Transport Equipment

= Zone 1 = Zone 2 = Zone 3
Description Must be located in
4.1 Manufacture hand tools (38110)
4.2 Manufacture of razor blades or handles (38110)
4.3 Manufacture of furniture and parts primarily of metal (38120)
4.4 Manufacture of structural metal products (38130)
4.5 Manufacture of boilers (38130)
4.6 Manufacture of metal containers (38191)
4.7 Manufacture of metal wire or wire products (38192)
4.8 Manufacture of fabricated metal products, including metal parts for automotive and electronic products (38199)
4.9 Manufacture of agricultural machinery or equipment (38220)
4.10 Manufacture of wood or metal-working machinery or tools (machine tools) (38230)
4.11 Manufacture of industrial machinery or equipment (38240, 38299)
4.12 Production of oil drilling platforms (38240)
4.13 Manufacture of office, computing or accounting machinery (non-electronic) (38250)
4.14 Manufacture of water pumps (38299)
4.15 Manufacture of air or gas compressors (38299) except manufacture of air or gas compressors under 4 horse- power which must be located in Zone 3.
4.16 Manufacture of fire extinguishing apparatus. equipment or parts (38299)
4.17 Building or repairing of steel ships of not less than 500 gross tons (38411)
  • Projects located in Zone 1 or 2
    1. 50% import duty reduction on machinery which is not included in the tariff reduction notification of the Ministry of Finance (Notification No.C 13/2533) and is subject to import duty greater than or equal to 10%.
    2. Corporate income tax exemption for 3 years for projects located in Zone 1 and 5 year for those located in Zone 2.
  • Projects located in Zone 3
    1. Exemption of import duty on machinery.
    2. Corporate income tax exemption for 8 years.
4.18 Building of other ships except wooden or steel ships (38413, 35599)
  • 50% import duty reduction on machinery which is not included in the tariff reduction notification of the Ministry of Finance (Notification No. C 13/2533) and is subject to import duty greater than or equal to 10%
  • Corporate income tax exemption for 3 years for projects located in Zone 1 and 5 years for those located in Zone 2.
4.19 Manufacture of railroad equipment and electric trains (38420)
4.20 Manufacture or repair of aircraft (38450)
  • Projects located in Zone 1 or 2
    • 50% import duty reduction on machinery which is not included in the tariff reduction notification of the Ministry of Finance (Notification No. C 13/2533) and is subject to import duty greater than or equal to 10%.
  • Projects located in Zone 3
    • Exemption of import duty on machinery.
  • Corporate income tax exemption for 8 years, regardless of location.
4.21 Manufacture or repair of aircraft parts (38450)
4.22 Manufacture, repair, maintenance and refurbishing of containers (38191)
4.23 Manufacture of engine parts, transmissions, brakes, steering or suspension systems (38439)
4.24 Manufacture of vehicle parts (38430, 38432, 38439, 38440)
  • Bicycle parts
  • Radiators
  • Fuel tanks
  • Filters
  • Air filers
  • Oil and fuel filters
  • Wiring harness
  • Gaskets
  • Leaf springs
4.25 Manufacture of other other vehicle parts (38431, 38432, 38439, 38440)
4.26 Manufacture of Motor-cycles
  • Consist of motor-cycle with 4 gears engines and have a production capacity of not less than 50,000 cars per year.
  • The beginning of production must be from raw material through paint process, and spare-parts and engines and must be produced in Thailand and must follow Ministry of Industry policy.
  • Will get privileges if located in Zone 3 but will not get raw material import duty reduction as specified in section 30
4.27 Manufacture of car assemblies
  • Project located in Zone 1
    1. No exemption on income tax and dividends as specified in sections 31and 34
    2. No exemption or deduction on machinery import duty as specific in sections 28 and 29.
  • Project located in Zone 2
    1. Get deduction for machinery import duty as specified in section 29 not cover items in announcement of Finance Ministry No. SK 13/1990 date September 181,990 except machinery import duty less than 10% will not get deduction.
    2. Get exemption of income tax and dividend as specified in section 31 and 34 for the period of 7 years, especially for export income.
  • Projects located in Zone 3
    1. Get exemption for machinery import duty as specified in section 28.
    2. Get exemption of income tax and dividend as specified in section 31 and 34 for period of 8 years especially for export income.
    3. Get deduction 50% of income tax of normal rate as specified in section 35(2) for period of 5 year especially for export income.
    4. Will get the right to deduct for transportation electricity, water in double as specified in section 35(3) for period of 10 year at the beginning of income.
    5. Will get the right to deduct installation or construction for facility 25% of total investment as specified in section 35(4).

Remark: In order to support automobile promotion those who get approval for assembly get raw material deduction import duty as specified in section 30 followed by the committee rate to compensate tax in production of spare parts produced in Thailand for car's export.

End of Section 4

  1. Agriculture and Agricultural Products
  2. Minerals. Metals, and Ceramics
  3. Light Industry
  4. Manufacture of Metal Products, Machinery, and Transport Equipment
  5. Electronics and Electrical Industry
  6. Chemical Industry, Paper and Plastics
  7. Services and Public Utilities

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