Fixed 17% personal income tax rate and corporate income Tax exemption to entice Thai professionals to return to work in Thailand

The government aims to strengthen the country’s competitiveness and encourage investment in key industries that play a significant role in the national economy. To achieve this, innovative tax measures are essential to attract skilled professionals who have worked overseas to return and contribute to Thailand’s workforce.

Under the Royal Decree Issued under the Revenue Code on Tax Reduction and Exemption No. 793, effective 25 March 2025, Thai employees who meet the eligibility criteria will receive tax benefits, including a reduced withholding tax rate and a fixed personal income tax rate of 17% on assessable income earned from employment with companies or partnerships operating in target industries. This measure applies from the effective date of this Royal Decree to 31 December 2029.

At the same time, employers which are companies or partnerships operating in target industries and hiring eligible employees will be entitled to a corporate income tax exemption of 50% of the expenses paid as salaries to eligible individuals. This exemption applies to wages paid from the effective date of this Royal Decree to 31 December 2029.

This measure applies to companies or partnerships engaged in target or unique target industries, as outlined by relevant legislation, which include:

• The Investment Promotion Act, B.E. 2520 (1977) and its amendments, which identify businesses eligible for investment incentives provided by the Board of Investment (BOI).
• The Enhancement of National Competitiveness for Targeted Industries Act, B.E. 2560 (2017), which aims at leveraging advanced technologies and innovations to improve the country’s global competitiveness.
• The Eastern Economic Corridor Act, B.E. 2561 (2018), which focuses on industries that are encouraged in the Eastern Economic Corridor (EEC) area.

These target industries include sectors that are pivotal to Thailand’s economic development, such as digital technology, robotics, electronics, aviation, healthcare, and other high-tech industries.

The eligibility criteria for participants

Those working abroad who wish to return to work in Thailand under this Royal Decree must meet the following criteria, procedures, and conditions:

1. Must be a Thai national.
2. Must hold at least a bachelor’s degree.
3. Must have a minimum of two (2) years of work experience in countries other than Thailand.
4. Must be an employee under a labour contract with a company or partnership operating in a target industry. The individual must enter Thailand to work for such an employer between the effective date of this decree and 31 December 2025, with employment commencing within this period. The employer is required to notify the Revenue Department of the person’s employment before making the first salary payment. The tax reduction applies to income received from the date that the Revenue Department acknowledges the employer’s notification.
5. Must not have worked in Thailand during the tax year when they begin utilizing the tax reduction under this decree and must not have been a resident of Thailand in the two tax years preceding the year they start using the tax reduction.
6. Must be a resident of Thailand in the tax year they utilize the tax reduction under this decree, with the exception that, in the initial or final tax year of utilizing the tax reduction, they may not be considered a resident of Thailand.
7. Must meet additional qualifications and comply with the criteria, methods, and conditions as announced by the Director-General of the Revenue Department.

Reference (in Thai)

• The Royal Decree Issued under the Revenue Code on Tax Reduction and Exemption No. 793 (2025). Retrieved from The Royal Decree No. 793.