The Cabinet on 30 July 2024 approved the Ministry of Finance’s proposal on tax incentives to encourage skilled Thai professionals working overseas to return home and work in Thailand, especially in target industries.
The Ministry of Finance quoted a report issued by the World Bank that Thailand still faces a shortage of highly skilled labor, particularly in the fields of information technology and innovation. This problem has created obstacles to the country’s economic development in the long run and might affect Thailand’s competitiveness.
The Government needs to promote target industries that are in line with the country’s potential. The Ministry of Finance, therefore, deems it appropriate to propose tax measures to encourage high-potential Thais working abroad to return to work in Thailand.
These measures would contribute to Thailand’s economic and social development and enhance its competitiveness. Both the employees and employers will receive tax benefits under these measures.
Under the proposal, qualified returning Thai professionals will be required to pay personal income tax at a maximum of 17 percent for five years. They must hold at least a bachelor’s degree and have worked overseas for at least two years. They must also return to Thailand from the date the law governing the tax incentives comes into force until 31 December 2025.
Companies that employ returning Thai professionals in the target industries will be allowed to deduct 1.5 times their expenses of hiring them. This will be effective until 31 December 2029.
The Ministry of Finance expects that about 500 Thai professionals will take up the offer on tax incentives. This offer is also likely to enable the Government to collect more revenue, although it may lose about 120 million baht in corporate tax income over the five-year period.
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