Thailand plans five-year tax cut to retain professionals

In order to improve the brain drain situation, the Thai government plans to reduce personal income tax by 50% for elites who are willing to return home to work, especially those from the electronics, automotive, robotics and aviation industries.

Thailand's deputy Finance minister Poh Boon said Prime Minister Sadek Thud's cabinet on Tuesday approved a tax break to attract Thailand's elite who are working overseas. He noted that eligible Thais would only have to pay 17% personal income tax for five years after returning home. By contrast, Thai residents earning more than 5 million baht a year pay a top tax rate of 35 percent.

Thailand's economy has been expanding at a slower pace than its neighbors in recent years, and he faces the task of reviving it since taking office a year ago. To that end, he has aggressively promoted Thailand as an investment and tourism hub, but faces a shortage of professionals in high-tech manufacturing and services, including the key tourism sector.

Bowen said that if companies hire elite returnees, they can apply for a deduction of 1.5 times the employment fee, and these benefits will last until the end of 2029. However, applicants must be Thai nationals who have worked overseas for at least two years, and must have a degree of not less than a bachelor's degree. Registration will be open until December 31, 2025.

"We want to bring them back to help develop the Thai economy and select industries... This will help generate more tax revenue through the development of key industries that we did not have before."

According to an official statement, the government expects at least 500 professionals to accept the offer, which is expected to cost the government about 120 million baht in tax revenue over the next five years.