Tax incentives to promote the return of Thai nationals working abroad now law

Income tax incentives approved by the Cabinet last year to attract Thai nationals working abroad to return to work in the country have now become law (see HLB Insights article Cabinet approves tax-measures to promote the-return of Thai-nationals working abroad).

The tax incentives are contained in Royal Decree no.793 issued under the Revenue Code. The Royal Decree came into effect on 25 March 2025.

Qualifying employees will be eligible to pay a flat personal income tax rate of 17% on employment income whilst employers will receive a 150% corporate income tax deduction for the salary costs of the employee.

The criteria and conditions include:

• Employees must be Thai nationals who have at least 2 years’ experience working abroad and hold at least a bachelor's degree.
  
  
• 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 enter Thailand during the period from 25 March 2025 to 31 December 2025 for the purpose of working for their employer and commence working no later than 31 December 2025.
  
  
• The employee must not have worked in Thailand in the tax year in which the right to use the 17% tax rate is first exercised.
  
  
• The employee must not have been a tax resident of Thailand in the two tax years prior to the year in which the right to use the 17% flat tax rate is first exercised.
  
  
• The employee must be a tax resident of Thailand in each tax year in which the rights are exercised, except for the first and last tax years in which the rights are exercised.

The tax incentives will be available until 31 December 2029.

Further rules and conditions may be prescribed by the Revenue Department.