Forvis Mazars Payroll Flash News - August 2024 (Vol. 2)
Tax Measures to Encourage Skilled Thais Working Abroad to Return and Contribute to Thai National Growth
On 30 July 2024, the Cabinet approved new tax measures aimed at incentivizing highly skilled Thai professionals working overseas to come back and contribute to the country’s development. These measures will be in effect from the date on which the law is enacted until 31 December 2029.
Employer benefits:
Companies or legal partnerships operating in target industries can deduct 1.5 times the amount of salary expenses paid under labour contracts to employees meeting the qualifications for salaries paid from the date on which the law comes into effect until 31 December 2029.
Employee benefits:
Individuals who meet the following qualifications can apply for a flat tax rate of 17% (compared to the normal highest individual tax rate of 35%):
- Has at least a bachelor’s degree.
- Has a minimum of 2 years of work experience abroad.
- Returns to Thailand while this new tax law is in effect (but no later than 31 December 2025).
- Is employed under a labour contract by a company or legal partnership operating in target industries, with the contract commencing while this new tax law is in effect (but no later than 31 December 2025).
- Has not worked in Thailand before the period in which the tax incentives are first applied (in the first year).
- The individual must not have resided in Thailand for more than 180 days a year for at least 2 years prior to the first year in which the tax incentives are to be applied.
- In the applicable year, the individual must be physically present in Thailand for at least 180 days (whether consecutively or not) in any tax year (calendar year).
- Files a personal income tax return annually with the Thai Revenue Department. The Revenue Department may establish additional criteria and conditions related to the use of tax benefits under this measure.
Source (in Thai):
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