The Thai government has decided to waive personal income tax collection from foreign actors when working on films shot in Thailand in the next five years, in a fresh bid to attract foreign crews to the country and the associated revenue.
Deputy Government Spokesperson Rachada Dhnadirek said today (Tuesday) that the tax incentive is part of the government’s efforts to develop the country’s soft power.
Thailand earned an average of 3.5 billion baht a year from foreign film crews from 2017 to 2021, with the revenue increasing to 5 billion baht last year.
Incentives provided to foreign film crews include cash rebates of 15-20% of the expenses incurred in Thailand, with limits capped at 75 million baht, said Rachada adding, however, actors have been required to pay personal income tax while they were working in Thailand, despite the fact that they have to pay personal income taxes in their home countries as well.
This double taxation may discourage them from filming in Thailand, she said.
With the income tax exemption, Thailand expects to gain an average of 3.5 billion baht in revenue per annum from foreign film crews over the next five years, totaling 17.5 billion baht, while the amount of revenue lost through the tax exemption for the same period will be about 71.75 million baht.
Source: Thai Public Broadcasting Service (Thai PBS)