The Thai government has approved a series of tax incentives designed to encourage skilled Thai workers currently abroad to return and contribute to the nation's development. These measures aim to attract talent with expertise in industries that are vital for Thailand's economic growth and national development. 

Priority industries chosen by the Thai goverment 

1. Automotive
2. Electronics
3. High-quality tourism
4. Agriculture, food, and biotechnology
5. Transportation and logistics
6. Automation and robotics
7. Aviation, aerospace, and space
8. Biofuels and biochemical
9. Petrochemical and chemical products
10. Digital
11. Medical
12. Defense
13. Circular economy support
14. International business centers
15. Other industries requiring specific expertise, such as technology research and financial consulting

By these measures, Thailand aims to reduce the "brain drain" while increasing the country's overall competitiveness. The program is set to run until the end of 2029, and the government expects at least 500 professionals to take up the offer.

According to Mayoon Boonyarat, Senior Tax Policy Economist at the Ministry of Finance of Thailand,  “The government is focusing on attracting skilled individuals, whether they are students or professionals currently working abroad. These talented individuals are presently contributing to foreign economies, but their return would significantly boost Thailand's economy and targeted industries. Additionally, their return would generate tax revenue that the country has not previously benefited from”. 

Main Elements of Thailand’s new tax incentives to attract Thai working abroad

Duration of Benefits:

• The benefits will be in effect from the date the law becomes effective until December 31, 2029.

Tax Benefits:

Personal Income Tax (Employees):

• A reduced personal income tax rate of 17% will apply to income earned from wages by employees working in companies or partnerships within targeted industries. This reduction applies to income earned from the law's effective date until December 31, 2029.

Corporate Income Tax (Employers):

• Companies or partnerships in targeted industries will be able to deduct 1.5 times the salary expenses paid to qualifying employees. This deduction is available for salaries paid between the law's effective date and December 31, 2029.

Eligibility Criteria:

For Companies/Partnerships (Employers):

• Employers must notify the Revenue Department about the eligible employees and provide the necessary company / employee details to trigger the process. 

For Individuals (Employees):

• Must hold at least a bachelor's degree.
• Must have a minimum of two years of work experience abroad, supported by relevant documentation.
• Must return to Thailand between the law's effective date and December 31, 2025.
• Must be employed under a contract in a targeted industry and earn assessable income.
• Must not have worked in Thailand in the tax year when the tax reduction is first applied.
• Must meet specific residency requirements in Thailand during the tax years when the benefits are utilised.

The Revenue Department will provide additional details and guidelines regarding the implementation of these incentives. The Thai government believes that these measures will attract skilled Thai professionals back to the country, contributing to the growth of targeted industries, enhancing competitiveness, and stimulating investment in sectors with high economic value.

Click here to read the full official statement issued by Mayoon Boonyarat, Senior Tax Policy Economist at the Ministry of Finance of Thailand. 

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