Thailand’s Tax Incentives for STEM Talent

Thailand’s Tax Incentives for STEM Talent: A Strategic Opportunity for Businesses in Target Industries

 

With the clock ticking toward the end of 2025, companies operating in Thailand’s targeted industries have a valuable opportunity to leverage corporate income tax (CIT) incentives for hiring and training highly skilled professionals in science, technology, engineering, and mathematics (STEM). Introduced under Royal Decrees No. 777 and 778, these incentives are designed to enhance national competitiveness and support workforce development in high-impact sectors.

Royal Decree No. 777: CIT Exemption for STEM Talent

Effective from 1 January 2023 to 31 December 2025, RD No. 777 allows eligible companies to claim a CIT exemption equal to 50% of salary expenses paid to qualifying high-skilled STEM employees. This applies to salaries up to THB 100,000 per employee per month.

Key eligibility criteria include:

• Employees must be certified as highly skilled in STEM fields.
• Employment contracts must fall within the incentive period.
• Employees must not have worked in another targeted industry for at least one year prior.
• Companies must operate within designated target industries under Thailand’s Competitiveness Enhancement Act.
• Compliance with additional rules set by the Revenue Department is required.

Royal Decree No. 778: Enhanced Deduction for STEM Training

RD No. 778 complements RD No. 777 by offering a 150% tax deduction on qualifying STEM-related training expenses incurred during the same period.

Eligibility highlights:

• Training must follow accredited curricula.
• Expenses must not be claimed under other tax incentive schemes.
• Companies already benefiting from other tax exemptions are excluded.
• Full compliance with Revenue Department regulations is necessary.

BDO Insights: Strategic Planning is Key

These incentives present a compelling opportunity for companies to reduce tax liabilities while investing in future-ready talent. To fully capitalize on these benefits, businesses should:

• Engage early with the National Science and Technology Development Agency (NSTDA) for certification of STEM professionals.
• Maintain thorough documentation—including contracts, job descriptions, payroll records, and qualification certificates—to support tax claims.
• Seek expert guidance to navigate regulatory requirements and optimize incentive utilization.

BDO in Thailand is ready to assist companies with tailored advice and hands-on support to ensure compliance and maximize benefits.