Incentives Approved to Promote JV Investments in Automotive Parts Sector

Incentives Approved to Promote JV Investments in Automotive Parts Sector - Thailand’s Board of Investment (BOI) has approved an incentives package to promote investment in joint ventures between Thai and foreign companies to manufacture automotive parts and components for internal combustion engines, hybrids, and electric vehicles.

Both new projects and existing wholly foreign owned parts manufacturers already enjoying BOI promotion privileges but transforming into a qualifying JV, will be eligible for an additional corporate income tax exemption of 2 years on the condition that the tax exemption period does not exceed 8 years in total.

To qualify for the incentives, the JV must invest not less than Baht 100 million in the manufacturing of auto parts and be formed between a foreign company and a Thai company that holds not less than 30% of the JV’s registered capital.

The Thai company entering the JV must have been established for at least 3 years prior to the date of the filing of the application for promotion, and at least 60% of the company’s registered capital must be held by Thai citizens.

Applications for investment promotion under this package must be submitted by 31 December 2025.