thai cabinet approves tax incentives for foreigners with ltr visa - Thai cabinet approves tax incentives for foreigners with LTR visa

Photo by Mladen ANTONOV / AFP

The cabinet approved in principle today (Tuesday) a draft royal decree to exempt from personal income tax foreigners on long-term resident visas (LTR visa) who stay in Thailand or who want to work from Thailand.

Foreigners with special skills who work in Thailand in specific industries will enjoy a flat rate personal income tax of 17%.

The intention is to use tax incentives to persuade these foreigners, who are regarded as high income earners, wealthy or who have special skills needed by Thailand, to stay in this country long term, to help boost the domestic economy and to help in technological development.

Foreigners who qualify as wealthy who will be issued with LTR visas are those who invest, through foreign direct investment (FDI), in Thai government bonds or invest in real estate in Thailand worth a minimum of US$ 500,000, have had personal income of no less than US$ 80,000 per year for the past two years and with assets worth about US$ 1 million.

Foreign pensioners who qualify for an LTR visa will be at least 50 years old who have invested in Thai government bonds via FDI or invested in real estate in Thailand, worth a minimum of US$250,000, have an annual income of US$40,000 or an annual pension of a minimum of US$80,000.

The third group eligible for an LTR visa are those who want to work from Thailand, with an annual income of no less than US$80,000 for the past two years or have annual income of at least US$40,000 if they have graduated with a Master’s degree or own an intellectual property right or have received “Series A” funding with five years of work experience.

The fourth group of foreigners are those with special skills who have had an annual income of at least US$80,000 for the past two years or have a minimum annual income of US$40,000, if they have completed post-graduate education, and with five years of work experience in industries targeted by the Thai government.

The National Economic and Social Development Council projects that this tax incentive scheme will attract as many as a million foreigners to stay in Thailand for a long period.