Measure to Promote Thai–Foreign Joint Venture Investments in Automotive Parts Manufacturing Activities
To encourage and support foreign automotive parts manufacturers to invest in collaboration with Thai entrepreneurs, thereby creating business opportunities for Thai entrepreneurs and enhancing automotive parts manufacturing technology in line with modern automotive industry developments.
This measure applies to both new investment projects and existing BOI-promoted projects in the manufacture of engines, equipment, or parts, as well as automotive parts activities. It establishes clear joint venture conditions to promote technology transfer and enhance the capabilities of the domestic industry.
Eligible Projects
• Activity 3.4, the manufacture of engines, equipment, or parts and/or Activity 3.5, the manufacture of vehicle parts
• Applicable to both new investment projects and existing BOI-promoted projects
Conditions for Application
For new investment projects
✓ “A new juristic person” must be established after the date of this Announcement.
✓ Must be a joint venture between Thai and foreign juristic persons.
✓ The Thai juristic person must hold at least 20% of the registered capital throughout the corporate income tax exemption period.
✓ The Thai juristic person must have established and operated businesses in the automotive and parts industry for at least 3 years.
✓ Thai natural persons must hold at least 60% of its registered capital.
✓ The project must have a capital investment of at least 100 million baht (excluding land costs and working capital).
✓ Applications must be submitted from the first working day of 2026 to the last working day of 2027.
For existing BOI-promoted projects
✓ Must be projects under Activity 3.4 and/or Activity 3.5 with remaining corporate income tax exemption.
✓ Must revise the shareholding structure from fully foreign-owned to a Thai–foreign joint venture.
✓ The Thai juristic person must hold at least 20% of the registered capital throughout the corporate income tax exemption period.
✓ Qualifications of the Thai juristic person, shareholders, and capital investment are the same as for new projects.
✓ Applications must be submitted from the first working day of 2026 to the last working day of 2027.
Additional Incentives
• An additional 3-year corporate income tax exemption
• Total corporate income tax exemption period must not exceed 8 years.
Projects granted additional incentives under this measure may also apply for additional incentives under other measures, except those with specific policies under which additional incentives are not granted.
Comparison of Thai–Foreign Joint Venture Investment Promotion Measure
| Item | New Investment Projects | Existing BOI-Promoted Projects |
| Project Type | Establishment of a new juristic person after the announcement date | Existing BOI-promoted project |
| Business Activity | Activity 3.4 and/or 3.5 | Activity 3.4 and/or 3.5 |
| Initial Shareholding Status | Established as a new joint venture | Previously fully foreign-owned |
| Thai–Foreign Joint Venture Requirement | Must be structured as a Thai–foreign joint venture | Must revise the shareholding structure to a Thai–foreign joint venture |
| Shareholding Proportion of Thai Juristic Person | At least 20% throughout the incentive period | At least 20% from the date of amendment of the promotion certificate |
| Qualifications of Thai Juristic Person | Must have operated in the automotive/parts industry for at least 3 years and have at least 60% Thai individual shareholding | Same as new projects |
| Minimum Investment | At least 100 million baht (excluding land costs and working capital) | At least 100 million baht (excluding land costs and working capital) |
| Existing Tax Privileges Requirement | Not required | Must have remaining corporate income tax exemption, both in terms of duration and amount |
| Application Period | 2026 – 2027 | 2026 – 2027 |
| Additional Incentives | Additional 3-year corporate income tax exemption (total not exceeding 8 years) | Additional 3-year corporate income tax exemption (total not exceeding 8 years) |
Supporting document:
Announcement of the Board of Investment No. 5/2569 Measure to Promote Thai–Foreign Joint Venture Investments in Automotive Parts Manufacturing Activities
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