Introduced incentive package for joint ventures with foreign investors in the automotive parts sector
09 Aug 2024
On 8 August 2024, Thailand approved incentives for joint ventures (JV) between Thai and foreign companies to manufacture automotive parts for vehicles. The incentives will apply to the manufacturing of parts for internal combustion engines, hybrids, and electric vehicles.
The conditions of incentives are:
1) A new joint venture must invest at least THB 100 million (approx. $3 million) in automotive parts manufacturing, be formed between a foreign and Thai company, with the Thai side holding at least 30% of the registered capital;
2) The Thai company must have been established for at least 3 years prior to application and be at least 60% Thai-owned.
The incentives include an additional two years of corporate income tax (CIT) exemption, extending the exemption period provided under the existing investment incentive scheme, capped at eight years in total. Both new projects and existing companies transitioning into a joint venture will be eligible for these benefits.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Manufacturing (Manufacture of transport equipment)
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Sources:
