Thailand’s Board of Investment (BOI) has launched a bold set of new measures to maintain investor confidence and fortify the nation’s production base ahead of looming global trade shifts—particularly the new 36% reciprocal tariffs by the United States, effective August 1, 2025.
Key Highlights:
- Thai SMEs now qualify for a 5-year corporate income tax holiday, up from the previous 3 years.
- Manufacturers of EVs and electronics that source from Thai-made parts get an additional 2-year 50% tax reduction.
- BOI will now exclude incentives for low-tech, oversupplied, or environmentally harmful industries, such as solar panel assembly or metal casting.
- Firms with over 100 employees must employ at least 70% Thai nationals, with salary floors for foreign specialists and executives.
These changes reflect the BOI’s twin goals: defending Thailand’s export position by meeting U.S. rules of origin standards, and ensuring local value retention through Thai sourcing and labor mandates.
For foreign investors, this means site selection and labor strategy must now align more closely with local compliance and sourcing rules. IPA’s advisors are ready to help clients assess zone eligibility, workforce planning, and BOI documentation requirements.
Strategic Takeaway: These incentives present a critical opportunity for qualified projects, but also introduce new filters for site approval and eligibility. Start your planning early—and choose your advisors wisely.
