On 15 Aug 2023 Thailand Tax Royal Decree (No 774) was gazetted extending the corporate tax deduction concession for employment of freed prisoners.

This Tax Insight has been updated for the enacting of Royal Decree (No 744).

The Tax Deduction Concession under RD (No 774)

Royal Decree (No 704) granted this tax deduction concession for the 2020 year, Royal Decree (No 726) extended it for the 2021 year and Royal Decree (No 744) extends it again for the 2022 to 2025 years, as follows:

Applicability

Financial years beginning on or after 01 Jan 2022 and before 31 Dec 2025.

The Tax Deduction Concession

For the costs incurred on employing freed prisoners, a corporate tax deduction concession of 150%, that is:

• The normal 100% tax deduction for the employment costs; plus
• An additional 50% tax deduction concession for the employment costs.

Rules and Conditions

The rules and conditions prescribed in Royal Decree (No 774) are that:

1. The freed prisoners employed shall be Thai nationals who have completed their sentences or had their sentences remitted or paroled;
2. The freed prisoners employed shall have been released from prison for a period not exceeding three years;
3. The additional 50% tax deduction concession shall apply only to the hire of labor amount paid up to 15,000 Baht per month per employee;
4. The corporate entity claimant shall not claim any other tax concession for the costs under any other Royal Decree, in whole or in part;
5. The corporate entity claimant shall comply with the Revenue Department's additional rules, procedures and conditions; and​
6. If any of the rules and conditions have not been complied with, the right to the tax deduction concession is lost and the corporate entity claimant shall include the amount of the tax deduction concession that is claimed in each year as income in re-computed net profit computations for those years.

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