On July 16, 2025, Thailand’s Board of Investment (BOI) introduced a comprehensive policy package titled “Measures to Enhance the Potential of Thai Entrepreneurs for the New Global Era.”
The initiative aims to strengthen domestic competitiveness and address rising trade protectionism, including U.S. tariffs.
Several measures have since been formally implemented through BOI announcements, while others remain pending.
Measure 1: Tax Incentives for SMEs to Improve Efficiency
BOI has enhanced its tax incentives for Thai small and medium-sized enterprises (SMEs) registered with the Office of SMEs Promotion (OSMEP). Qualifying investments include:
- Machinery upgrades
- Automation and digital systems
- Energy-saving improvements
- Adoption of international standards
- Transition into new industries
Tax relief has been increased from a 3-year corporate income tax exemption on 50% of the investment to a 5-year exemption on 100% of the investment.
Measure 2: Local Content Incentives for EVs and Appliances
To strengthen local supply chains and reduce reliance on imported components, BOI has formally implemented a local content incentive for electric vehicles and electrical appliances. This measure was issued under BOI Announcement No. 6/2568 and builds on the earlier policy framework set in Announcement No. 9/2565.
Eligible projects include:
- Battery Electric Vehicles (BEVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
- Electric buses and battery trucks
- EV components and systems
- Smart electrical appliances and smart electronics
- General electrical appliances
To qualify, companies must:
- Obtain Made in Thailand (MiT) certification from the Federation of Thai Industries (FTI)
- Meet the following minimum local content thresholds:
| Activity | Minimum Local Content (by value) |
|---|---|
| BEVs | 40% |
| PHEVs | 45% |
| Electric buses/trucks | 40% |
| EV parts and components | 15% |
| Smart electrical appliances/electronics | 40% |
| General electrical appliances | 40% |
Approved companies receive a 50% corporate income tax deduction for 2 years, starting after the end of their regular BOI tax exemption period.
Applications must be submitted by the last working day of 2026, and proof of MiT certification and compliance must be filed by the last working day of 2027.
This measure is accompanied by proactive supply chain promotion activities such as SUBCON Thailand, Business Matching, and Sourcing Day, connecting Thai parts manufacturers with major domestic and international firms.
Measure 3: Stricter Production Process Requirements
BOI will apply tighter scrutiny to production processes in sectors at risk of abuse or affected by U.S. trade measures. Covered industries include:
- Automotive parts
- Electronics and electrical appliances
- Metal products
- Textiles
- Furniture and bags
To qualify for BOI incentives, businesses must carry out substantial transformation of raw materials. This includes, at minimum, a change of at least 4 digits in the customs tariff code, to ensure sufficient local value addition for export products.
Could the new BOI measures benefit your business?
Tell us briefly about your case and our Bangkok legal team will map out your options.
Measure 4: Adjustments to Investment Promotion in Sensitive Sectors
The BOI has announced a series of changes affecting sectors considered vulnerable to trade risks, market oversupply, or environmental impact. Some of these measures have already been formally implemented through BOI Announcement No. Sor 7/2568, while others remain part of broader policy direction.
Low-tech industries affected by trade measures
BOI has announced the withdrawal of investment promotion for:
- Solar panel production
- Automotive accessories
- Decorative parts
It has also introduced a requirement for majority Thai shareholding in the following categories:
- Bag manufacturing
- Furniture manufacturing
- Printing businesses
The shareholding requirement has been implemented under BOI Announcement No. Sor 7/2568 and applies specifically to:
- Category 9.8 – Bag manufacturing (restriction applies only to bags)
- Category 9.12 – Furniture and parts
- Category 9.14 – Printing businesses
This requirement applies to BOI applications submitted from September 1, 2025, except for projects located in border special economic development zones.
Industries facing oversupply
BOI has announced the cancellation of promotion for selected downstream steel products, including:
- Long steel
- Hot-rolled plates
- Thick plates
- Steel pipes
- Metal cutting operations
Industries with environmental or community risks
BOI has also announced that companies involved in the production or forming of metals, chemicals, and plastics (e.g., rolling, drawing, casting, forging) will no longer be eligible for land ownership under BOI promotion.
This restriction has been implemented under BOI Announcement No. Sor 7/2568. It applies to the following business categories:
- 5.4.9 – Non-ferrous metal forming
- 5.4.11.2 – Iron and steel products or parts
- 5.4.11.4 / 5.4.11.5 – Other metal products and parts for industry
- 6.2 – Chemical products for industrial use
- 6.4.1 – Plastic products and parts for industrial use
Land ownership remains permitted only for companies under the same juristic person that:
- Have received BOI promotion for at least three projects between 2011 and 2025, and
- Have a combined approved investment of at least THB 5 billion, excluding land cost and working capital
No extensions allowed during transitional period
For applications in the affected categories submitted between July 22 and August 31, 2025, the BOI will not allow extensions for:
- Acceptance of the promotion approval, or
- Submission of documents for issuance of the BOI promotion certificate
BOI has also emphasized the importance of enhanced environmental oversight in these sectors. While relocation to industrial estates has been mentioned in policy discussions, it has not yet been formalized in a BOI announcement.
Measure 5: Revised Rules for Foreign Personnel
BOI has introduced new employment requirements to promote local job creation and knowledge transfer:
- Companies with more than 100 employees must ensure that at least 70% of staff are Thai nationals.
- To qualify for BOI visa and work permit privileges, foreign staff must meet minimum monthly income thresholds:
- Executives: THB 150,000
- Specialists: THB 50,000
These conditions aim to ensure that only genuinely skilled foreign professionals contribute to value creation in the Thai economy.
For more details on foreign personnel rules, see:
New BOI Rules for Hiring Foreign Employees in Thailand (Effective Oct 2025 / Jan 2026)
Further Measures Under Preparation
BOI also announced that it is preparing additional targeted support measures for sectors directly affected by U.S. tariffs. These efforts will focus on export-oriented and high value-added industries where Thailand serves as a key production base, including:
- Food processing
- Rubber products
- Automotive components
- Electronics
- Machinery
- Electrical appliances
- Gems and jewelry
How We Can Help
At AIM Bangkok, we assist foreign and Thai investors with all aspects of doing business in Thailand — from strategic planning to regulatory compliance.
Our services include:
- Company formation and legal structuring
- BOI project advisory and application preparation
- Drafting and reviewing shareholding structures in regulated sectors
- Visa and work permit support for executives and specialists
- Regulatory assistance for export-driven and MiT-compliant businesses
Whether you are entering the Thai market or expanding production capacity, we can help you navigate investment incentives, regulatory requirements, and long-term strategic planning.
Contact us today to discuss your project or request a consultation.
