Leo Watanabe
2024年8月9日
The Thailand Board of Investment (BOI) has introduced a new set of incentive packages to stimulate investment in joint ventures between Thai and foreign companies for the manufacture of automotive parts and components. The incentive package provides a tax exemption period of two years and targets vehicles with all propulsion systems including internal combustion engines, hybrids, and electric vehicles.
This initiative was announced during a BOI board meeting chaired by Deputy Prime Minister and Minister of Finance Mr. Pichai Chunhavajira to enhance business opportunities for Thai entrepreneurs and elevate the standards of automotive parts production in Thailand. The incentive package is aimed at increasing the importance of Thailand´s supply chain and fostering the country´s status as a key manufacturing hub in the global automotive industry.
Both new projects and existing BOI-promoted projects converting to joint ventures under these guidelines will benefit from an additional two years of tax exemption, provided that the total exemption period does not exceed eight years. Applications for the joint ventures under this incentive package must be submitted by the end of 2025.
To be eligible for these incentives, new joint ventures must meet the following criteria:
A minimum investment of 100 million baht is required
The Thai entity must hold at least 30% of the registered capital
The Thai entity must have been established for at least three years and be at least 60% Thai-owned.
The BOI has designed this package targeting the 1,300+ Thai automotive parts manufacturers, primarily SMEs to ensure their rapid adaptation to modern technologies and integration into the global supply chain.