(CTN News) – The government plans to reduce personal income taxes by 50% for experts returning home to work for enterprises in fields like as electronics, autos, robots, and aviation.
On Tuesday, Prime Minister Srettha Thavisin’s cabinet authorised tax concessions to attract “the cream” of abroad Thai workers, Deputy Finance Minister Paopoom Rojanasakul told reporters.
Qualified Returning Thais to Benefit from Lower Personal Income Tax Rate
Mr Paopoom stated that qualified Thais returning to their motherland will be obliged to pay only 17% personal income tax for five years. That compared to the maximum 35% rate for residents earning 5 million baht (US$39,000) or more per year.
Mr Srettha, who took government nearly a year ago after nearly a decade of military control, is under pressure to resuscitate Southeast Asia’s second-largest economy, which has lagged behind its neighbours’ growth.
He has actively promoted Thailand as an investment and vacation destination, despite the fact that the country has a scarcity of expertise in high-tech manufacturing and services, including the critical tourism industry.
Indonesia, which is also wooing international investment, has stepped up preparations to stem the migration of local talent, entice migrants back home, and strengthen the country’s skilled labour pool. Both nations have also provided special visas for digital nomads.
According to Mr Paopoom, enterprises in Thailand who employ returning Thais under the latest initiative will be able to deduct 1.5 times their hiring expenses. The benefits will be available until the end of 2029, he stated.
Thai citizens must have at least two years of international experience and a bachelor’s degree to be eligible for incentives. Mr Paopoom said the scheme will be open for sign-ups until December 31, 2025.
“We want to bring them back to help develop Thai economy and select industries,” said the ministry official. “The move will also help generate more tax revenue we haven’t gotten before” with the expansion of critical industries, he said.
According to an official statement, the government anticipates at least 500 professionals to accept the offer, potentially resulting in a tax income loss of almost 120 million baht over five years.
