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Skilled Foreigners to Get Tax Break, Rich Pensioners to Pay No Taxes

How many of these Chiang Mai expats will be deemed skilled or wealthy enough to qualify for the new tax breaks?
How many of these Chiang Mai expats will be deemed skilled or wealthy enough to qualify for the new tax breaks?

Highly skilled foreigners who come to Thailand to work will see lower personal tax rates than other expats under a proposal approved by the Cabinet.

Ministers on Tuesday agree to cut the personal income tax on foreign “experts” to 17% and end double taxation on their income from overseas sources to encourage long-term stays in the kingdom, Trisulee Trisaranakul, a government spokeswoman, said.

The tax incentive approval went to a draft royal decree aimed at convincing foreigners with high capabilities and income – classified as “highly-skilled professionals” – to work in Thailand.

The personal income tax reduction supports the government’s policy to promote the industries that will boost national competitiveness including industries in the Eastern Economic Corridor.

Besides, the draft decree waives personal income tax for wealthy foreign retirees and for the foreigners who generated income from their overseas work and want to import the income along with their arrival for their long stays.