Extension of Tax Exemption Period Under the Thailand Plus Package Program

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Extension of Tax Exemption Period Under the Thailand Plus Package Program

The Ministry of Finance has proposed 3 draft Royal Decrees under the Revenue Code on revenue exemption to extend the tax exemption period under the Thailand Plus Package Program. The Cabinet has approved and passed them to the Council of State to conduct an immediate review. The essences of the Royal Decrees are as follows:

  • 1. Draft Royal Decree Prescribing Tax Measures to Promote Investment in Automation

The objective is to promote and support investors in investing more in automation in Thailand, which will enhance the country’s competitiveness and industry efficiency.

This draft Royal Decree extends the period of corporate income tax exemption for expenses spent on machinery and computer programs for automatic machines investment from 1 January 2020 (B.E. 2564) to 31 December 2025 (B.E.2568).

  • 2. Draft Royal Decree Prescribing Tax Measures to Promote Hiring of Highly Skilled Personnel.

The objective is to encourage and support the employment of highly skilled individuals in the fields of science, technology, engineering, and mathematics, which will enhance the country’s competitiveness and industry efficiency.

This draft Royal Decree extends the period of corporate income tax exemption for salaries of skilled employees in sciences, technology, engineering, and mathematics spent by the targeted industries, i.e. automotive, agriculture industry, and biotechnology industries from 31 December 2022 (B.E. 2565) to 31 December 2025 (B.E.2568).

  • 3. Draft Royal Decree Prescribing Tax Measures to Promote Development of Highly Skilled Personnel.

The objective is to encourage and support the skill upgrading of employees in companies or juristic partnerships in order to increase staffs’ efficiency and encourage the growth of Thailand’s private sector.

The draft Royal Decree extends the period of corporate income tax exemption for expenses on employees’ education or training organized by government agencies, i.e. Office of National Higher Education, Science Research, and Innovation Policy Council (NXPO), Eastern Economic Corridor Office of Thailand (EECO) and Digital Economy Promotion Agency (DEPA) from 1 January 2021 (B.E. 2564) to 31 December 2025 (B.E.2568). Moreover, after this draft Royal Decree becomes enforced, the Ministry of Finance will add the Center of Robotics Excellence (CoRE) to the list of designated government agencies organized for education and training.

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