The government of Thailand has declared that it will extend the period of certain tax incentives for business located in the special economic development zones (SEZs) in Narathiwat province, Pattani province, Yala province, Songkhla province (only for the Jana district, Thepha district, Na Thawi district, and Saba Yoi district), and Satun province for 3 additional years, covering the period from 1 January 2021 to 31 December 2023. There are several royal decrees published in November 2021 to extend of various incentive measures. The key measures in the royal decrees are following:

Royal Decree No. 731

Individuals who earned employment income assessable under section 40(1) of the Thai Revenue Code from companies or juristic partnerships that have their place of business in an SEZ may elect to pay personal income tax in respect of such employment income at a rate of 3%, without the need to include such income in the normal tax computation.

Royal Decree No. 730

Companies or juristic partnerships that are incorporated business from financial year 1 January 2021 to 31 December 2023 and paid up capital as of the last day of the accounting period that does not exceed THB 5 million, and that get income from sales of goods and services during the accounting period that does not exceed THB 30 million will be exempt from corporate income tax for 5 accounting periods. The tax exemption will be provided only to qualified industries specified in the decree that are located in the SEZ.

Royal Decree No. 729

Companies or juristic partnerships operates in an SEZ are entitled to an additional tax deduction of 100% (i.e. total 200% deduction) for expenses incurred for investments, improvements or expansions of assets related to the business in an SEZ.

Royal Decree No. 728

Companies or juristic partnerships and Individuals that have their place of business operation in an SEZ are entitled to an additional tax deduction of 100% (i.e. total 200% deduction) for costs incurred for purchasing and installing of CCTV at their business premises located in an SEZ.

Royal Decree No. 727

• Reduction of the corporate income tax rate of 20% to 3% on net profits for companies or juristic partnerships that have their place of business in an SEZ.
• Reduction of the special corporate income tax rate to 0.1% of the gross proceeds applicable to the sale of immovable property situated in an SEZ in a commercial or profitable manner.
• Reduction of the personal income tax rate of 0.1% final tax on their income for individuals who have their place of businesses in an SEZ.