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BOI approves measures to promote local content: use of specified domestic parts qualifies for additional tax reduction benefits.

30 June 2025| Number Of Visitors 1,946

Mr. Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), revealed that on June 27, 2025, the BOI Board meeting, chaired by Deputy Prime Minister and Minister of Finance Mr. Pichai Chunhavajira, approved the “Local Content Promotion Measure” to encourage investors in the electric vehicle and electrical appliance industries to purchase more domestically produced materials. This initiative aims to create greater business opportunities and integrate Thai entrepreneurs into the global supply chain.

From 2022 to May 2025, there have been a total of 65 investment promotion applications in the electric vehicle and parts industry, with total investment value exceeding 96 billion baht.

The newly approved “Local Content Promotion Measure” will apply to the manufacturing of battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), EV parts, and electrical appliances, with the following proportions required:

BEV and electrical appliances must use locally produced parts accounting for more than 40% of the total value of raw materials.

PHEV must use locally produced parts accounting for more than 45% of the total value of raw materials.

EV parts must use locally produced raw materials accounting for more than 15% of the total value of raw materials.

All products must be certified as “Made in Thailand” (MiT) by the Federation of Thai Industries (FTI).

Companies that meet the criteria and conditions will receive an additional 50% corporate income tax reduction for two more years.

In the previous BOI Board meeting, several other measures were also introduced, including:

Measures to encourage Thai SMEs to improve their efficiency and enhance their competitiveness.
Suspension of promotion for activities facing oversupply issues, such as long steel products, hot-rolled steel sheets, steel pipes, and activities at risk of U.S. trade measures, like solar panel manufacturing.
Stricter assessment of key production processes for projects applying for promotion, to prevent misuse of incentives and to increase value added from production in Thailand.
Requirements for employing more than 70% Thai personnel in manufacturing businesses, and setting a minimum salary of 50,000–150,000 baht for foreign personnel, to ensure only highly skilled foreign experts are hired.