Pursuant to the Cabinet resolution of 10 May 2022, the LTR’s incentives include the following:
• 10-year visa;
• Exemption from requirement to hire 4 Thais for each expatriate employee;
• Requirement to report stay in Thailand every 90 days changed to reporting once a year;
• Exemption from applying for re-entry permit;
• Dependant visas obtainable for family members;
• A 17% flat tax rate for employees working in targeted industries in the Eastern Economic Corridor (EEC) and for highly skilled professionals;
• Digital work permit obtainable; and
• Ability to use the FastTrack privilege at airports.
Although the LTR scheme may be attractive for many expats who intend to reside in Thailand on a long-term basis, it may not be suitable for the “average” digital nomad or remote worker. In particular, it should be noted that applicants in the category “foreign professionals working in Thailand” must still be employed by a stock-listed or large corporation abroad. In addition, and depending on the role of the expat working in Thailand, such company may face the risk of creating a permanent establishment and conflict with investment laws in Thailand through the expat on the grounds in Thailand.
Therefore, the LTR scheme should be critically evaluated on a case-by-case basis, taking into consideration, amongst others, the tax implications and registration requirements for the employer situated abroad.Lorenz & Partners has over 25 years of experience in advising foreign companies to structure their investments in Thailand and the Southeast Asian region and to optimize each project in the most tax-efficient way.
2Must be at least 50 years old, must have personal income of at least USD 40,000 per year or a pension of at least USD 80,000 per year, must have a balance of at least USD 100,000 in a Thai or foreign bank account for at least 12 months prior to the application date, and must invest at least USD 250,000 in Thai government bonds or real estate.
3Must have an employment agreement with a company abroad which must be a listed company or a limited liability company that has been in business for over 3 years and has had total income of at least USD 150 million during the 3 years prior to the application date, and must have had personal income of at least USD 80,000 per year for the past 2 years (or USD 40,000 if holding a master’s degree or higher, or if holding intellectual property or receiving Series A funding).
4Must have at least 5 years work experience in certain target industries, and must have had personal income of at least USD 80,000 per year for the past 2 years.
0+
