Thailand’s Board of Investment (BOI) has introduced a new investment promotion measure to encourage partnerships between Thai and foreign automotive parts manufacturers. The measure, published in the Government Gazette on March 31, 2026, under Notification of the Board of Investment No. 5/2569 Re: Investment Promotion Measures for Joint Ventures between Thai and Foreign Companies in the Auto Parts Manufacturing Industry, aims to enhance local industry participation and create new business opportunities for Thai operators.

Corporate Income Tax Exemption

Under this measure, the BOI grants an additional corporate income tax (CIT) exemption of three years to both new investment projects and existing operators under the BOI’s business category 3.4 (manufacture of engines, equipment, or parts) or category 3.5 (manufacture of vehicle parts). If the CIT exemption period is added to an existing one, the total exemption period will be capped at a maximum of eight years.

To benefit from the exemption, certain conditions must be met, as described below.

Conditions for New Investment Projects

• The joint venture company must be newly established after January 15, 2026.
• At least 20% of the registered capital must be held by a Thai juristic person throughout the CIT exemption period.
• The Thai juristic person must have been operating in the automotive or auto parts industry for at least three years prior to the application date and must be at least 60%-owned by Thai individuals.

Conditions for Existing BOI-Promoted Projects

• The company must have been wholly foreign-owned at the time the promotion certificate was issued.
• The shareholding structure must be amended following the issuance of the notification to establish a joint venture between a foreign juristic person and a Thai juristic person that has been operating in the automotive or auto parts industry for at least three years prior to the application date.
• This Thai juristic person must hold at least 20% of the registered capital from the date of the shareholding structure amendment through the duration of the CIT exemption period.
• The existing BOI project must still have a CIT exemption period remaining at the time of application submission.

Investment Requirements and Application Window

For both project types, the minimum investment is THB 100 million, excluding land costs and working capital. Applications for investment promotion or project amendment must be submitted between the first working day of 2026 and the last working day of 2027.

This measure reflects the BOI’s continued focus on strengthening Thailand’s automotive supply chain by promoting technology transfer, local participation, and strategic partnerships between foreign investors and Thai manufacturers.