The Thailand Board of Investment (BOI) approved a series of new incentives to promote investment in joint ventures (JV) between Thai and foreign companies regarding the manufacturing of automotive parts and components for vehicles using all types of propulsion systems.
The new package of incentives, which covers investments in both new projects and existing BOI-promoted projects, aims to provide increased business opportunities for Thai entrepreneurs operating in the sector and to help upgrade automotive parts production.
The incentives will apply to the manufacturing of parts for internal combustion engines (ICE), hybrids, and electric vehicles.
To qualify for the incentives, a new JV will be required to invest not less than THB 100 million in the manufacturing of auto parts and to be formed between a foreign company and a Thai company, whereby a Thai side must hold no less than 30% of the new entity’s registered capital.
The Thai company entering the JV will itself be required to have been established for at least three years prior to application with the BOI and to be at least 60% Thai-owned.
Both new projects and existing parts manufacturers are already enjoying BOI promotion privileges but transforming into a JV along the same criteria. They will be eligible for two years of additional tax exemption on the condition their total tax exemption period does not exceed eight years in total.
Applications for investment promotion under this package must be submitted by the end of 2025.
