Draft laws on tax measures to support the relocation of the production base of foreign investors

On 28 April 2020, the Cabinet approved three draft Royal Decrees on tax measures to support the relocation of the production base of foreign investors (the Thailand Plus Package).

Keywords: Mazars, Thailand, Tax Measures, Relocation, Foreign Investors, Cabinet, Royal Decrees

30 April 2020

The main contents of those Royal Decrees are set out below:

1. Draft Royal Decree on tax measures to promote investment in automation

This Royal Decree allows 200% deduction of all expenses for investments in machinery and computer software related to automation investment projects, which expenses are not incurred for the repair or maintenance. The expenditure must be made from 1 January 2019 to 31 December 2020.

2. Draft Royal Decree on tax measures to promote the employment of highly skilled personnel

This Royal Decree allows 150% deduction of salary expenses for highly skilled employees in science, technology, engineering, or mathematics, for employment contracts concluded between 1 January 2019 to 31 December 2020. This deduction will apply to salaries paid from 1 January 2019 to 31 December 2020, capped at THB 100,000 a month.

3. Draft Royal Decree on tax measures to promote the development of highly skilled personnel

This Royal Decree allows 250% deduction of expenses paid for sending employees to study or receive training in courses certified by the government or government agencies. The expenditure must be made from 1 January 2019 to 31 December 2020.

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