Thailand cuts corporate tax rate to 10% for qualifying businesses in Special Economic Zones for ten years under Royal Decree No. 797 starting 6 June 2025.
The Thai Revenue Department has issued Royal Decree No. 797, dated 2 June 2025 and published in the Royal Gazette on 5 June 2025, introducing a reduced corporate income tax rate to promote investment in Special Economic Zones (SEZs).
The decree enacts a 50% reduction in the corporate tax rate—from 20% to 10%—for qualifying businesses operating within the designated SEZs. The reduced rate takes effect from 6 June 2025 and applies for a period of ten consecutive accounting years.
The measure, approved by Thailand’s Cabinet on 13 January 2025, applies to companies or juristic partnerships carrying out targeted activities specified by the SEZ Development Policy Committee. To qualify, businesses must generate income from goods produced in SEZs or services performed and consumed within SEZ boundaries.
Currently, ten SEZs have been designated in the following border provinces: Tak, Mukdahan, Sa Kaeo, Songkhla, Trat, Nong Khai, Narathiwat, Chiang Rai, Nakhon Phanom, and Kanchanaburi.
To qualify for the reduced corporate tax rate under Royal Decree No. 797, businesses must meet six specific conditions. They must formally register with the Revenue Department as an SEZ-based entity and must not claim any other concurrent tax exemptions or incentives.
