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Thailand: Tax incentives to encourage foreign investment and relocation of production

Thailand: Foreign investment, relocation of production

The Thai Cabinet in late April 2020 approved the principles underlying tax incentives that are intended to encourage foreign investors to relocate their production activities to Thailand and to enhance Thailand’s competitiveness. The tax incentives would be made available under the “Thailand Plus Package.”


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The tax benefits include additional tax deductions for companies or partnerships with regard to certain expenses incurred in the period 1 January 2019 to 31 December 2020, such as:

  • Tax incentive to promote the investment in automation systems—to allow a 100% additional deduction of expenses incurred from the investment in automatic machinery and software used with the machinery. This additional deduction would not include expenses incurred with respect to repairs to qualifying machinery.
  • Tax incentive to encourage the employment of highly skilled personnel—to allow a 50% additional deduction of expenses incurred with regard to salaries, subject to a cap or maximum salary of Baht 100,000, paid to highly skilled employees in the areas of science, technology, engineering, and mathematics for individuals employed between 1 January 2019 to 31 December 2020.
  • Tax incentive to encourage employee development—to allow a 150% additional deduction of expenses incurred in connection with sending employees for training courses that are certified by specified authorities.

Read a May 2020 report prepared by the KPMG member firm in Thailand

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