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

Royal Decree (No 774) extends the Government's encouragement of corporate entities to employ prisoners freed from jail under Royal Decree (No 704) which applied for the 2020 year and Royal Decree (No 726) for the 2021 year.

The Tax Deduction Concession under RD (No 774)

Applicability

A corporate entity's fiscal year that begins on or after 01 Jan 2022 and before 31 Dec 2025.

Amount

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 shall be Thai nationals;
2. The freed prisoners shall have been freed from prison to work not more than 3 years from the date of release from prison;
3. The additional 50% tax deduction concession shall apply only to the hire of labor amount paid to freed prisoners 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 additional rules and conditions of the Revenue Department; 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 claimed in each year as income in re-computed net profit computations for those years.
   

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