Thailand: Corporate income tax exemption and reduced individual income tax for highly skilled Thai professionals
Exemption and reduction apply from March 25, 2025, through December 31, 2029
The Cabinet of Thailand on March 24, 2025, approved Royal Decree No. 793, which provides tax incentives to encourage highly skilled Thai professionals to return to the country. The decree reduces the individual (personal) income tax rate to 17% and offers corporate tax exemptions on 50% of salary expenses.
Corporate income tax exemption
Companies or juristic partnerships operating in targeted industries will benefit from income tax exemptions on 50% of the salary expenses paid to qualifying employees. This exemption applies to salaries paid from March 25, 2025, through December 31, 2029, subject to specific rules and conditions set by the Director-General.
Reduced withholding tax rate
The withholding tax rate for income earners employed by companies or juristic partnerships in targeted industries is reduced to 17%. This reduced rate applies from March 25, 2025, through December 31, 2029. The taxpayer must meet the qualifications and adhere to the rules, procedures, and conditions set forth in the decree.
Read an April 2025 report prepared by the KPMG member firm in Thailand