Investment in SEZs at Thailand’s borders: Opportunities for business expansion with a 10% CIT reduction

This measure is intended to create a more supportive environment for business expansion and to attract investment, helping to strengthen economic linkages with key domestic and neighbouring markets. 

According to this update, this article summarises the key incentives and eligibility conditions under this measure. 

Key tax incentives

Companies or juristic partnerships can claim a reduced CIT rate of 10% on income from the production of goods in the SEZs and services performed and used within the SEZs for up to 10 consecutive accounting periods, starting from 6 June 2025. 

To claim the tax incentives, companies or juristic partnerships must meet the following eligibility conditions: 

• operate in targeted industries within the SEZs, which refer to 10 areas located along Thailand’s border regions, namely Chiang Rai, Kanchanaburi, Mukdahan, Nakhon Phanom, Narathiwat, Nong Khai, Sa Kaeo, Songkhla, Tak, and Trat; 
• submit a notification to the Director-General of the TRD to claim the tax incentives, through the Large Taxpayers Office (“LTO”) or the relevant Revenue Area Office where the business is located; 
• have accounting documentation separating the parts of the business that are eligible and ineligible for the tax incentive under the Royal Decree; 
• compute net profit or loss in accordance with the Thai Revenue Code, with separate calculations for eligible and non-eligible activities, appropriate allocation of expenses, and activity-specific loss carryforward; 
• not claim any tax exemptions or tax reductions under the Board of Investment Promotion Act (whether in whole or in part), or under Royal Decrees No. 564, No. 583, No. 591, or No. 693.  

References (in Thai): 

• Royal Decree No. 797. Retrieved from the Revenue Department. 
• Notification of the Director-General of the TRD No. 468. Retrieved from the Revenue Department.