Thailand: Extension of tax incentives to encourage personnel development, foreign investments
The tax incentives would be extended to 31 December 2025.
Encourage personnel development, foreign investments
The Thai Cabinet on 7 March 2023 approved three draft Royal Decrees to extend the tax measures to support human resource development for targeted industries and the relocation of production bases under the “Thailand Plus Package.” Read TaxNewsFlash
The tax incentives originally applied from 1 January 2021 through 31 December 2022, but would be extended to 31 December 2025.
The extended tax incentives specifically would include:
- Tax measure to promote investment in automated systems, which allows an additional deduction of 100% of expenses for the investments in automatic machines and software used for the automated systems in an investment project, paid during 1 January 2021 to 31 December 2025. This additional deduction does not include expenses incurred for the repair of such machines.
- Tax measure to encourage the employment of highly skilled personnel, which allows an additional deduction of 50% of expenses from the payment of salaries, not exceeding a maximum salary of THB 100,000, to highly skilled employees in the areas of science, technology, engineering and mathematics who are under employment and was paid during 1 January 2021 to 31 December 2025.
- Tax measure to encourage employee development, which allows an additional deduction of 150% of expenses from sending employees on training courses certified by specified authorities as paid during 1 January 2021 to 31 December 2025.
The previous Thailand Plus Package included the tax measure to support human resource development for “Industry 4.0,” which provided additional tax deductions through the donation of machines and other equipment. However, this measure was not included with the other measures that received extension in the Cabinet’s resolution.
Read an April 2023 report [PDF 224 KB] prepared by the KPMG member firm in Thailand
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