Thailand to offer more tax perks for foreign experts

Bangkok / Tribune News Service

The Revenue Department is poised to offer a personal income tax exemption of 10-15 years to foreign experts as part of its relentless effort to draw inbound direct investment to jump-start private investment.
The tax waiver would be offered to experts in specific fields that can help strengthen the country’s competitiveness. It is not a blanket offer, said an informed source at the department, adding that the highest rate of personal income tax remains high despite the recent change in income bands.
Under the new personal income tax structure to be enforced in the 2017 tax year, the income band for the 30% bracket will be raised to 2-5 million baht from 2-4 million baht, and the new range for the top rate at 35% will start from 5 million.
The government also offered a batch of tax incentives for international headquarters (IHQs), including a flat personal income tax rate of 15% to expatriate employees of IHQs.
The Board of Investment recently approved in principle a personal income tax cut for researchers and experts working in the government’s 10 targeted industry clusters. These are next-generation cars; smart electronics; affluent, medical and wellness tourism; agriculture and biotechnology; food; robotics for industry; logistics and aviation; biofuels and biochemicals; digital; and medical services.
The government aims to kick-start private investment after a Finance Ministry study found the country’s subpar growth could be attributed to subdued private investment for a decade.
The source said the personal income tax exemption for foreign
experts is meant to raise direct
investment and beef up competitiveness.
Meanwhile, Prasong Poontaneat, director-general of the Revenue Department, said the tax-collecting agency was considering measures to attract foreign experts. The tax incentives could be offered to support startups or clusters the government is trying to promote.