Thailand's cabinet has approved tax measures to attract skilled workers in 15 target industries to Thailand by cutting income taxes to 17 percent and allowing employers to deduct 1,5 times wages for five years.
On July 30, 2024, the Cabinet approved a draft ministerial regulation to revise tax measures aimed at promoting sustainable investment in Thailand. This measure aims to support high-potential Thai individuals working abroad and in 15 target industries and encourage them to return to Thailand to work. Both employees and employers receive tax benefits.
The 15 target industries are:
- Automotive
- Electronics
- High-quality tourism
- Agriculture, food and biotechnology
- Transport and logistics
- Automation and robotics
- Aviation, space travel and astronautics
- Biofuels and biochemical products
- Petrochemical and chemical products
- Digital
- Medical
- defence
- Supporting the circular economy
- International business centers
- Other sectors that require specific expertise, such as technological research and financial advice
Paophum Rojanasakul, Deputy Minister of Finance, stated that the government is prioritizing the recruitment of skilled workers for the country, whether they are students working abroad or employees currently working abroad. These people are talented, but are currently contributing to foreign economies. Their return would contribute to the development of Thailand's economy and generate targeted industries and tax revenues that Thailand has not received so far.
To create incentives, income taxes for qualified employees with a withholding tax rate above 17 percent will be reduced to 17 percent of taxable income. This applies to income from employment with companies or legal partnerships in the target sectors from the date of entry into force of the law until December 31, 2029.
For corporate tax, employers (companies or legal entities in the target sectors) may deduct 31 times the wage costs for qualified employees from the date of entry into force of the law until December 2029, 1,5.
Employee Qualifications:
- Thai nationality, minimum bachelor's degree, worked abroad for at least two years.
- Must return to Thailand from the entry into force of the law until December 31, 2025.
- Must be an employee under contract of employment with a company or legal partnership in the targeted industries and earn taxable income under section 40(1) of the Revenue Code.
- The applicant must not have worked in Thailand in the tax year in which the tax credit is first claimed and must not have lived in Thailand for at least two years prior to that tax year. If he did live there, he must have lived in Thailand for a total of less than 180 days in that tax year.
- Must have stayed in Thailand for a total of at least 180 days, except in the first and last tax year in which the benefit is claimed. In that year, a stay of less than 180 days is permitted.
Source: Khaosod English
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Known as Khun Peter (62), lives alternately in Apeldoorn and Pattaya. In a relationship with Kanchana for 14 years. Not yet retired, have my own company, something with insurance. Crazy about animals, especially dogs and music.
Enough hobbies, but unfortunately little time: writing for Thailandblog, fitness, health and nutrition, shooting sports, chatting with friends and some other oddities.
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I have a number of former students (all Thai nationality) who are working abroad, from Europe to the US and Australia. Please calculate whether this is an interesting option.
Salary now: around 3000 Euro net = 110,000 Baht.
Back in Thailand soon: 100,000 Baht (I estimate, at most) with 17% income tax: that leaves 87,000 Baht.
Now I know that you can do a lot with 87,000 Baht a month, but still: you will undoubtedly have more people here who want or want to borrow money from you than if you live in Ohio.
In addition, many of those former students are married to a foreigner and sometimes have children. It's not just about money as the Thai government (unfortunately) thinks. Paying for an international school with only an income of 87,000 Baht per month is not easy.