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: –
The Thai government is introducing the new digital system Thailand Digital Arrival Card (TDAC) which aims to provide convenience for all foreigners entering Thailand by air, land or sea. TDAC, which is developed to replace the traditional paper-based TM6 arrival card will be implemented starting 1 May 2025. The TDAC system offers the following convenience:-
Faster immigration processing upon arrival
Reduced paperwork and administrative burden
Ability to update information before travel
Enhanced data accuracy and security
Improved tracking capabilities for public health purposes
More sustainable and environmentally friendly approach
Integration with other systems for a smoother travel experience
Foreigners must submit TDAC information within 3 days before arriving in Thailand, including the date of arrival. This applies to all foreigners entering Thailand except for the following:
Foreigners transiting or transferring in Thailand without going through Immigration control
Foreigners entering Thailand using a Border Pass
To submit the TDAC, foreigners can access the Immigration Bureau website http://tdac.immigration.go.th or use the Thailand Pass mobile application. The process involves providing personal information, travel details and accommodation information. Once completed, travelers receive a QR code that must be presented to the Immigration officials upon arrival in Thailand, making the entry process more efficient and reducing physical contact at the border checkpoints.
The TDAC system offers two submission options:
Individual submission – for solo travelers
Group submission – for families or groups traveling together
The system allows the traveler to update most of the submitted information any time before his/her arrival in Thailand by revisiting the TDAC website and log in using the reference number and other identifying information. However, some key personal identifiers cannot be changed, if needed, the traveler may need to submit a new TDAC application.
Moreover, as part of the TDAC, foreigners must also complete a health declaration, as authorized by the Ministry of Public Health of Thailand.
In the event that a taxpayer was not able to submit and make the tax payment on time, there are penalty and surcharge to be paid upon submission of tax returns. This also applies if a taxpayer who filed the tax returns within the due date but does not pay the full amount of tax, or file the form late, neglected or avoided filing the tax return, he/she must pay additional fees and fines as prescribed by law. If he/she fails to pay, there might be criminal penalties as follows:
In case of failure to pay tax within the due date, additional surcharge of 1.5% of tax amount per month of the tax due and it must be paid within the specified time.
In case of filing the tax return on time but the tax amount was not paid correctly, there is a fine of 1 or twice the amount of the tax due, as the case may be. Such fine maybe reduced or exempted in accordance with the regulations prescribed by the Director-General with the approval of the Minister.
In the case of intentionally reporting false information or presenting false or fraudulent evidence to evade or attempt to avoid paying taxes, the penalty is imprisonment from 3 months to 7 years and a fine from THB 2,000 to THB 200,000.
In the case of intentional negligence in submitting a tax return in order to avoid paying taxes, there is a fine of not exceeding THB 200,000 or imprisonment not exceeding 1 year, or both.
Know more about your duties as a taxpayer in Thailand and make sure you submit your taxes correctly and on time to avoid the above consequences. Contact MSNA for getting tax ID, preparing and filing tax returns and tax consultation.
When a taxpayer has submitted his/her tax return within the specified deadline but there is a problem or error in the computer program or the e-filing system or payment method which resulted to the tax filing and payment to be unsuccessful, the form can be filed and the tax can be paid within 7 business days from the last day of filing via the internet and a request for an extension can be submitted.
The taxpayer must submit a petition along with the form and pay the tax at the Revenue Department’s area office along with the supporting documents as follows:-
Request for extension and a letter of consider for disclosure of information
Explanation letter of the cause of problem or error
A copy of the list submitted through the House of Representatives
Copy of Form B.Ch.35, if required
MSNA can assist individual taxpayers in filing their Thai personal income tax returns and corporate taxpayers in filing their corporate income tax returns and monthly taxes. We have vast knowledge and expertise in accounting and Thai tax laws. Make sure you submit your taxes on time. Contact us now for more information.
Tax Single Sign On (Tax SSO) system is developed to integrate the use of electronic services via the Internet of the three tax departments: the Revenue Department, the Excise Department and the Customs Department by using a single user and password to access the services of all three tax departments, in a one-stop service manner. This is not the same as SSO or Social Security Office.
Tax SSO service system’s main objective is to improve the tax service level of the Ministry of Finance, reduce the steps and facilitate the public in using the tax services of the three tax departments. It also helps entrepreneurs of both corporate entities and individuals to be convenient, flexible, fast and confident with security according to international standards.
Tax SSO service system provides:-
e-Filing system service of the Revenue Department which includes tax filing service such as monthly withholding tax forms (PND 1, PND 2, PND 3, PND 53 and PND 54), monthly VAT forms (PP 30, PP 36), Specific Business Tax (PT 40), corporate income tax (PND 50, PND 51, PND 52, PND 55), annual withholding tax (PND 1Gor, PND 2Gor) and personal income tax (PND 90, PND 91, PND 93, PND 94, PND 95)
e-Excise system service of the Excise Department includes online tax payment service for all types of products such as alcohol, tobacco, oil, cars, motorcycles and others as well as tax form status tracking service and electronic receipt printing service
e-Tracking service of the Customs Department includes service to check the account information, report in and out vehicles at any time, check the status of the goods transport note at any time and check the status of the goods transport invoice as well s verifying data registered with the Customs Department’s visitor registration system, checking outstanding customs fee payments, viewing customs fee payment history, displaying tax benefit information and checking refund transfer information, etc.
Make sure you submit your taxes in time. Contact MSNA for Tax SSO service system registration, tax filing and tax consulting services.
The Thai BOI grants the promoted activities with tax and non-tax incentives. In order to obtain investment promotion, the BOI applicant must follow the conditions prescribed by the Board of Investment as specified in the BOI promotion certificate in which the following incentives will be granted in accordance with the Investment Promotion Act:
Exemption or reduction of import duties on machinery (under Section 28/29)
Reduction of import duties for raw or essential materials (Section 30)
Exemption of import duties on materials imported for R&D purposes (Section 30/1)
Exemption of corporate income tax on the net profit and dividends derived from the promoted activity (Section 31, 31/1 and 34)
A 50% reduction of the corporate income tax (Section 35(1))
Double deduction from the costs of transportation, electricity and water supply (Section 35 (2))
Additional 25% deduction of the cost of installation or construction of facilities (Section 35 (3))
Exemption of import duty on raw or essential materials imported for use in production for export (Section 36)
However, not all promoted activities can be granted with the same tax incentives but if your company is one of those that can be eligible, we highly recommend to seek a BOI expert like us when you apply to open the BOI operation.
