New BOI measures to strengthen Thai foreign joint ventures in the automotive parts manufacturing industry

The objective is to encourage strategic cooperation through the establishment of business alliances that will help advance Thailand’s automotive sector into the higher value chain. This approach not only creates business opportunities for Thai entrepreneurs but also facilitates the transfer of knowledge, technology, and manufacturing innovation. These factors will enhance production standards and strengthen the country’s long-term competitive potential, aligning with development trends in the modern automotive industry, such as electric vehicles (EVs) and intelligent technology systems. 

Criteria for new investment promotion projects  

Projects applying for new investment promotion under these measures must fall under Category 3.4 (Manufacture of engines, equipment, or parts) and / or Category 3.5 (Manufacture of vehicle parts) pursuant to BOI Announcement No. 9/2565. Projects must possess the following key characteristics:  

• Entity formation: Must be established as a new legal entity after 15 January 2026. 
• Joint venture structure: Must be formed as a joint venture between a foreign legal entity and a Thai legal entity. 
• Thai ownership: The Thai legal entity must hold no less than 20% of the registered capital in the newly established company throughout the corporate income tax exemption period. 
• Experience: The Thai legal entity shareholder must have been operating in the automotive and parts industry for at least three years prior to the application date. 
• Thai shareholding: At least 60% of the registered capital of said Thai legal entity must be held by Thai natural persons. 
• Investment value: Must have a minimum investment value of 100 million Baht excluding the cost of land and working capital. 
• Application timeline: Applications must be submitted from the first business day of 2026 until the last business day of 2027. 

Upon fulfillment of all conditions, the project will receive an additional three-year corporate income tax exemption, capped at a maximum of eight years in total. 

Criteria for existing investment promotion projects 

For projects already granted investment promotion under Category 3.4 and / or 3.5 pursuant to Announcement No. 9/2565, the project must still have remaining corporate income tax exemption benefits (both in terms of duration and ceiling) as of the application date. Eligible projects must meet the following requirements: 

• Initial status: The project must have been established as a legal entity with 100% foreign shareholding at the time the promotion certificate was issued. 
• Restructuring: After the announcement takes effect, the shareholding structure must be changed to a joint venture between a foreign legal entity and a Thai legal entity. 
• Thai ownership: The Thai legal entity must hold at least 20% of the registered capital from the date the promotion certificate is amended and maintain this proportion throughout the corporate income tax exemption period. 
• Qualifications of the Thai shareholder: The Thai legal entity must have operated in the automotive and parts industry for at least three years and must have at least 60% of its shares held by Thai natural persons. 
• Investment threshold: The original project must have had an investment value at least 100 million Baht at the time of project approval, excluding cost of land and working capital,  
• Application for amendment: Requests to amend projects for additional benefits must be processed between the first business day of 2026 and the last business day of 2027.  

Upon fulfillment of all conditions, the project will receive an additional three-year corporate income tax exemption, subject to the overall cap of eight years. 

Projects that receive benefits under these measures may still apply for incentives under other BOI schemes, unless specific rules prohibit overlapping benefits, as determined by the BOI. 

Reference (in Thai):  

Measures to promote joint ventures between Thai and foreign companies in the automotive parts manufacturing industry. Retrieved from The Board of Investment of Thailand.