On 24 March 2025, the Thai Cabinet approved the Royal Decree (No. 793) B.E. 2568 (2025), issued under the Revenue Code governing the reduction and exemption of taxes and duties. The Royal Decree introduces tax incentives aimed at attracting highly skilled Thai professionals to return to Thailand, including a reduced withholding tax rate of 17% and a corporate income tax exemption on 50% of their salary expenses.
The Royal Decree offers the tax incentives as follows:
- Reduction of withholding tax rates
The withholding tax rate for income earners employed under companies or juristic partnerships in targeted industries is reduced to 17%, subject to the following qualifications and criteria, rules, procedures, and conditions set forth further in the Decree:
- Be of Thai nationality;
- Hold a bachelor’s degree or higher;
- Have at least 2 years work experience outside Thailand;
- Be employed by a company specified in the decree and enter Thailand to begin work between the effective date and 31 December 2025, provided that the employer must notify the Revenue Department before the first salary payment, and the tax reduction shall apply from the date of such notification;
- Not have previously worked in Thailand during the first taxable year in which the reduced tax rate is applied, and must not have resided in Thailand for 180 days or more in either of the two preceding taxable years;
- Reside in Thailand for at least 180 days in the year that the reduced tax rate is applied, except in the first or final year of eligibility; and
- Satisfy all qualifications and comply with the rules prescribed by the Director-General.
This reduced withholding tax rate applies from 25 March 2025 until 31 December 2029.
- Exemption on corporate income tax
Companies or juristic partnerships operating in targeted industries as prescribed are exempted from corporate income tax for 50% of the salary expenses paid to qualified employees under this Royal Decree. This exemption applies to salaries paid from 25 March 2025 until 31 December 2029, subject to the specific rules, procedures, and conditions set by the Director-General.
Tax incentives for skilled Thai professionals_Bangkok Global Law