Thailand doubles down on STEM talent: 150% Tax deduction extended with new certification rules

To continue this effort, Royal Decree No. 777 grants companies operating in target industries a 150% tax deduction on salary expenses paid to qualified STEM employees from 1 January 2023 to 31 December 2025. This enhanced deduction allows businesses to claim an additional 50% of eligible wage costs, up to a maximum of THB 100,000 per employee per month, reinforcing the government’s push to support research, development, and technology-driven growth. 

New certification requirement introduced

However, as of 22 September 2025, the rules have evolved. The Thai Revenue Department has issued Notification of the Director-General on Income Tax No. 46, adding a crucial layer of compliance to the scheme 

Under the new rules, both the STEM employees and their job positions must now be officially certified by either the Office of National Higher Education Science Research and Innovation Policy Council (NXPO) or the Digital Economy Promotion Agency (Depa). This certification ensures that only genuinely qualified professionals in designated STEM roles are eligible for the tax incentive.  

To benefit from the deduction, companies must obtain and retain the proper certifications and ensure that all employment contracts and documentation meet the audit requirements set out by the Revenue Department. 

What businesses should know

While the 150% tax deduction incentive remains unchanged, compliance is now more complex. Businesses seeking to claim the incentive must carefully align their employment structures, job descriptions, and supporting documents with the certification standards established by NXPO or Depa. Failing to secure proper certification could lead to disqualification of the tax benefit or challenges during a tax audit, potentially resulting in additional tax exposure and administrative penalties. 

In summary

Thailand’s 150% tax deduction for STEM employees continues to present a valuable opportunity for companies investing in innovation and human capital. However, with the introduction of new certification requirements, businesses must act proactively to maintain eligibility and compliance.  

If you would like professional assistance in securing certification and claiming the STEM tax deduction, our team at Forvis Mazars Thailand is here to help you every step of the way.  

References (in Thai): 

• Royal Decree No. 777. Retrieved from the Revenue Department. 
• Notification of the Director-General of the Revenue Department No.461. Retrieved from the Revenue Department.