New Notification on the tax incentives to promote the return of Thai nationals working abroad

The Director General of the Revenue Department has issued Notification No 460 on Income Tax to establish the criteria, procedures, and conditions to be eligible for the tax incentives (see HLB Insights article: Tax incentives to promote the return of Thai nationals working abroad now law)  contained in Royal Decree no.793 issued under the Revenue Code to attract Thai nationals working abroad to return to work in the country. (see HLB Insights article: Cabinet Approves Tax measures to promote the return of Thai nationals working abroad)

Under the Royal Decree, qualifying employees will be eligible to pay a flat personal income tax rate of 17% on employment income whilst employers will receive a 150% corporate income tax deduction for the salary costs of the employee.

The Notification requires Thai nationals eligible to pay personal income tax at the rate of 17% to submit personal income tax return Por.Ngor.Dor. 95 detailing the eligible assessable income and to retain supporting documents demonstrating educational qualifications and work experience.

The employer of Thai nationals eligible for the 150% corporate income tax exemption must provide information to the Revenue Department stipulated in the form attached to the Notification, prior to the first payment of income to the employee.

The Notification is effective from 25 March 2025.