Board of Investment Announcement No. 5/2569 
Re: Measures to Promote Joint Ventures Between Thai and Foreign Companies in Automotive Parts Manufacturing

Board of Investment Announcement No. 5/2569
Re: Measures to Promote Joint Ventures Between Thai and Foreign Companies in Automotive Parts Manufacturing

 

With reference to the Board of Investment Announcement No. 8/2565 dated 8 December 2022 regarding Investment Promotion Policies and Criteria, and the Board of Investment Announcement No. 9/2565 dated 8 December 2022 regarding Investment Promotion Measures for Industries Important to National Development;

In order to encourage and support foreign entrepreneurs in the automotive parts sector to invest in Thailand in cooperation with Thai entrepreneurs, thereby creating business opportunities for Thai companies and enhancing the development of automotive parts manufacturing technology in line with the evolution of modern vehicles;

By virtue of Sections 16 and 31 of the Investment Promotion Act B.E. 2520 (1977) and its amendments, the Board of Investment hereby issues the following announcement:

Clause 1  In the Case of New Investment Promotion Project

Conditions

1. The project must fall under Activity Category 3.4 – Manufacture of engines, equipment or parts, and/or Activity Category 3.5 – Manufacture of automotive parts, in accordance with the Board of Investment Announcement No. 9/2565 dated 8 December 2022.
2. A new juristic entity must be established after the issuance of this announcement. The entity must be a joint venture between a foreign juristic person and a Thai juristic person, whereby the Thai juristic person must hold not less than 20 percent of the registered capital in the newly established entity throughout the period during which corporate income tax incentives are granted.The Thai juristic shareholder must:
   • have been established and operating in the automotive or automotive parts industry for not less than three years prior to the date of application; and
   • have Thai natural persons holding not less than 60 percent of its registered capital.

3. The project must involve investment of not less than THB 100 million, excluding land costs and working capital.
4. Applications for investment promotion must be submitted from the first working day of 2026 until the last working day of 2027.

Incentives

Eligible projects will receive an additional corporate income tax exemption period of three years, provided that the total corporate income tax exemption period shall not exceed eight years in total.

Clause 2 In the Case of Existing Promoted Projects

Conditions

1. The project must be an existing BOI-promoted project under Activity Category 3.4 (manufacture of engines, equipment or parts) and/or Activity Category 3.5 (manufacture of automotive parts) under the BOI Announcement No. 9/2565 dated 8 December 2022 regarding the project eligible for corporate income tax exemption incentives, and provided that on the date of applying for additional incentives, the project must have the remaining of corporate income tax exemption privileges, both in terms of exemption period and exemption amount.
2. At the time the promotion certificate was issued, the company must have been fully foreign-owned, and the shareholding structure must subsequently be amended after the issuance of this announcement to become a joint venture between a foreign juristic person and a Thai juristic person.The Thai juristic person must hold not less than 20 percent of the registered capital, from the date the promotion certificate is amended and throughout the remaining corporate income tax exemption period.The Thai juristic shareholder must:
   • have been established and operating in the automotive or automotive parts industry for at least three years prior to the date of application for project amendment, and
   • have Thai natural persons holding not less than 60 percent of its registered capital.

3. The project must involve investment of not less than THB 100 million, excluding land costs and working capital, at the stage of project approval.
4. The application for project amendment to obtain additional incentives must be submitted from the first working day of 2026 until the last working day of 2027.

Incentives

Eligible projects will receive an additional corporate income tax exemption period of three years, provided that the total corporate income tax exemption period shall not exceed eight years in total.

Clause 3

Projects receiving additional incentives under this measure may also apply for additional incentives under other investment promotion measures, except for measures that specifically prohibit receiving additional incentives as prescribed by the Office.

Announced on 15 January B.E. 2569 (2026)

(Mr. Ekniti Nitithanprapas)
Deputy Prime Minister
Chairman of the Board of Investment