Cabinet Approves Tax measures to promote the return of Thai nationals working abroad

Cabinet Approves Tax measures to promote the return of Thai nationals working abroad

On 30 July 2024, the Thai Cabinet approved tax measures proposed by the Ministry of Finance to support Thai nationals working abroad to return to work in the country.

The tax measures include a flat 17% personal income tax rate on employment income and a 150% corporate income tax deduction for employers.

The criteria and conditions that will apply to access the tax breaks include:

• Employees must be Thai nationals who have at least 2 years’ experience working abroad and a bachelor's degree. A work certificate from an overseas employer or any other document confirming the experience of working abroad is required.
• The employee must be employed in a business engaged in a target industry, which is exempt from corporate tax in accordance with the National Competitiveness Enhancement for Targeted Industries Act, Investment Promotion Act or the Eastern Special Development Zone Act.
• The employee must not have worked in Thailand in the tax year in which the benefits are first applied.
• The employee must be in Thailand for not less than 180 days in the tax year in which the rights are exercised, except for the first and last tax years in which the rights are exercised.

These measures will apply to Thai nationals that return to Thailand from the effective date of the law until 31 December 2025. The tax measures will be effective until 31 December 2029.