Thailand to Remove Tax on Foreign Talent, Seeks to Increase Filming Attraction

The Thai government last week approved in principle a move to dispense with taxes laid on foreign acting talent. The move is intended to further increase the attractiveness of the country for film and TV productions.

Thailand currently offers foreign films shooting in the country a cash rebate of 15-20% of the expenses incurred in the country, with the ceiling per production fixed at THB 75 million baht ($2.12 million).

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But under current rules Thailand also imposes withholding tax on all employees – at the rate of 10% for foreigners. The tax is based on where the performance is carried out, rather than where the actor is paid, meaning that major stars visiting Thailand for work cannot avoid the charge.

The Thai location industry has been lobbying for several years for the removal of the tax that has argued is a disincentive. The cabinet decision removes the tax for a…