A targeted business industry covered under the Royal Decree No. 793 B.E. 2568 (2025) is a juristic partnership or corporate entity that has developed, utilizes its innovation and technology for production of goods or services that the Thai government promotes, and contributes to the country’s competitiveness.
Such targeted industries include companies or juristic partnerships operating in sectors defined by the following laws:
National Competitiveness Enhancement for Targeted Industries Act B.E. 2560
Investment Promotion Act. B.E. 2520
Eastern Special Development Zone Act B.E. 2561
For more clarifications about Thai taxes, contact MSNA for consultation.
Starting from 1 October 2025, employers in Thailand have more duties towards their employees.
Employer duties:
The employers with 10 employees or more must arrange for their employees to be members of the Employee Welfare Fund.
They have to submit Form SorKorLor.3 listing the employees’ names and other particulars. After the employer has submitted this form, the Department of Labour Protection and Welfare shall issue a certificate of registration (Form SorKorLor.4 or 4/1) to the employer.
They have to notify the Department of Labour Protection and Welfare if there is any change in the form listing the employees’ names, by using For SorKorLor.3/2 within the 15th of the following month.
They have to deduct 0.25% from the employee’s compensation of the month and match the same amount with their money. Then submit it to the relevant authority by the 15th of the following month. Failure to do so will result in a fine of 5% per month on the outstanding amount. The rate will be changed to 0.5% from 1 October 2030 onward.
Employee duties:
An employee who works for an employer with 10 employees or more must enroll into the Employee Welfare Fund.
He must pay 0.25% of the compensation he receives in a month into the Fund through being withheld and submitted to the Fund by his employer (The rate will be changed to 0.5% from 1 October 2030 onward.)
He must report any changes that affects his Fund membership to his employer.
He must designate the beneficiary who will receive the benefits in case of his death.
Exemptions:
Employers with fewer than 10 employees
Employers who provide a provident fund under the Provident Fund Act. However, if some employees do not join the provident fund, the employer has to enroll them into the Employee Welfare Fund.
Employers who provide assistance to employees in the event of termination of employment or death according to the rules and procedures prescribed by the related Ministerial Regulations.
Employers exempted by some other laws.
Benefits of the Employee Welfare Fund:
When the employee’s employment is terminated, the Department of Labour Protection and Welfare shall pay the employee the accumulated contributions, supplementary contributions, and any accrued interest from the Fund. In case of death of the employee, the Department of Labour Protection and Welfare shall pay the fund to his designated beneficiary.
The Thai Cabinet has recently approved the Royal Decree No. 793 B.E. 2568 (2025) which provides substantial tax incentives. This aims to attract highly skilled Thai professionals working abroad to return to Thailand and work in the targeted industries in order to support the economy’s growth by offering personal income tax reductions and corporate tax benefits for individuals and the companies that will employ them.
The personal income tax rate for individuals employed by the targeted industries is reduced to 17% whole companies operating in targeted industries are entitled to 50% corporate income tax exemption on salary expenses paid to qualified employees. This exemption applies to salaries paid from 25 March 2025 (the enforcement date) until 31 December 2029.
To be eligible for reduction and exemption of taxes and duties, the taxpayers must meet the following criteria.
For individuals:
Must be of Thai nationality
Completed at least a bachelor’s degree
Must have a minimum 2 years work experience abroad
Must have not previously worked in Thailand during the application year and must not have been a tax resident of Thailand in the past 2 years
Must be employed by a company in a targeted industry, entered in Thailand to begin employment between 25 March 2025 and 31 December 2025.
Stayed in Thailand for at least 180 days in the tax year which the reduced tax rate is applied, except for the first or final year of eligibility
Complied with all conditions set by the Director-General of the Revenue Department
For Employers (Companies or Juristic Partnerships)
Must operate in a targeted industry as defined by relevant laws
Must notify the Revenue Department before payment of first salary to the eligible individual. The tax reduction will be applied from the notification date
Ensure salary expense has not been used for any other tax incentive claims
For personal and corporate income tax filing and more information on Thai tax laws, contact MSNA for further consultation.
For companies engaged in service business, one must remember how to prepare the invoice, tax invoice and receipt properly.
The invoice, receipt/tax invoice should have a letterhead showing the full official name of the company, its registered address, tax ID number (not to be confused with VAT number) and the word “Headquarters” in case it is issued by the headquarters. For some companies with branch offices, they will put “Branch no. XX” if that certain branch office issues the documents.
Followed the letterhead, it should be the name of the document (i.e. “INVOICE” or “RECEIPT” or “TAX INVOICE” or “RECEIPT/TAX INVOICE”.
The invoice, tax invoice and receipt should have 3 separate sets of running sequence. Sometimes, you invoice your clients and they never pay you, or they pay 3 invoices in one payment, so you issue only one receipt and tax invoice. Sometimes, you also issue an invoice for reimbursement of expenses that may not have VAT in there so when you get paid, you will issue only a receipt but not a tax invoice. The sequence of each kind of documents cannot skip a number. You cannot have 1,2,3,5 and 4 is missing. In the event that you have to cancel an invoice, it is highly recommended to consult with your accountant like us. We suggest you use the following sets of running numbers:
a) Invoice No.: I250501 where it means Invoice, 25 is the year 2025, 05 is the month of May and 01 is the sequence of the invoice (this indicates how many invoices you have issued so far during May 2025).
b) Tax Invoice No.: T250501 where T means Tax Invoice, 25 is the year 2025, 05 is the month of May and 01 is the sequence of the invoice.
c) Receipt No.: R250501 where R means Receipt, 25 is the year 2025, 05 is the month of May and 01 is the sequence of the invoice.
Each kind of document should have 1 original and 2 or 3 copies. The original goes to the client, one copy goes to your accountant and you keep 1-2 copies. Some of your clients, specially if they are bigger companies, they prefer to have one original and at least one copy. Thus, the first page of the invoice or tax invoice/receipt should bear the word “INVOICE” (or TAX INVOICE or RECEIPT). The 2nd, 3rd and 4th should bear the name of the document and the word COPY (e.g. INVOICE (COPY).
Normally, when you invoice your clients for your services or deposits, you give them an invoice only. This is because you are a service business so you do not need to issue a Tax Invoice until you get paid. So, some companies combine their receipt and tax invoice into one document which they issue when they get paid (RECEIPT/TAX INVOICE).
Contact MSNA for further assistance in accounting, tax filing and expert advice on Thai taxation.
MSNA can assist you on how your company can file taxes online. If you are not registered with online tax filing yet, we can register your company with the Revenue Department’s e-filing system.
The RD’s e-filing system offers filing and submission services via the Internet which can be filed by taxpayers and accounting offices like MSNA. The e-filing system can also support the filing of all types of taxes, both regular and additional within the deadline and after the deadline.
The types of taxes that can be filed via e-filing system are as follow: –
