Tax Incentives for Employees Education and Training

Sumet Mingmolmolmitr (Senior Partner) 

 

Companies in Thailand are encouraged to support their employees in pursuing higher education or other training programmes. Such initiatives not only enhance employees’ skills but also strengthen the company’s long-term growth and profitability.

To promote this, the Revenue Department issued Order No. 122/2545, Re: Exemption of Income Tax Calculated from the Net Profit of Companies or Registered Partnerships Operating Businesses as Educational Institutions and Training Centres for Enhancing Employees’ Skills, and from Expenses on Education Purposes Made by Companies or Registered Partnerships dated 27 December 2002.

Deductible Expenses

Under this order, companies may fully deduct expenses incurred in supporting employees who:

  1. pursue further studies or training at public institutions or centres domestically or internationally;
  2. pursue further studies or training at private institutions or centres domestically or internationally; or
  • participate in in-house-training sessions organised by the company itself or by an external service provider.

These expenses are not considered prohibited under Section 65 Ter (13) of the Thai Revenue Code. To qualify for the deduction, however, the company must be able to demonstrate that the expenses were incurred for the company’s benefit, and the supported employees are required to return to work for the company.

Additional Tax Incentive

In addition, companies that provides financial support for employees to study or train at:

  1. government-established institutions or training centres, or
  2. institutions announced by the Ministry of Finance in the Royal Gazette,

are also eligible to fully claim a tax exemption on its income equal to the amount paid for the employees’ education or training. This incentive is granted under the Royal Decree issued pursuant to the Revenue Code Governing the Exemption from Revenue Taxes (No. 437) dated 15 October 2005.

These provisions highlight the Thai government’s commitment to encouraging workforce development while offering companies meaningful tax relief. To further navigate the rules and maximize available benefits, companies are encouraged to consult with a qualified tax counsel.

Blumenthal Richter & Sumet Achieves Repeat Recognition in IFLR1000

Blumenthal Richter & Sumet is pleased to share that four of its Partners have been recognized across two practice areas in the 35th edition of the IFLR1000, the guide to the world’s leading financial and corporate law firms.

In the Corporate/M&A practice, the firm has been ranked as a Recommended Firm, with the following Partners individually recognized:

  • Andreas Richter, Senior Partner and Head of the Corporate/M&A Practice, was ranked for the second consecutive year as a Highly Regarded Individual, a distinction reserved for lawyers with a proven track record advising on complex and high-value transactions, acknowledged by clients and peers alike.
  • Stefan Riedl, Partner, was recognized as a Notable Practitioner in M&A, highlighting his experience in contract drafting, transaction structuring, and dispute resolution arising from corporate deals.
  • Ekkarat Ritthiplang, Partner, who was promoted to the partnership in 2024, was named a Rising Star Partner, reflecting his growing market profile and deep experience in Board of Investment matters and coordination with Thai government agencies.

In the Projects & Energy practice, Blumenthal Richter & Sumet was once again ranked as a Notable Firm. Ira Blumenthal, Senior Partner, was also recognized for the second consecutive year as a Notable Practitioner, underscoring the firm’s continued strength in complex energy and infrastructure mandates.

The IFLR1000 is a leading international legal directory relied upon by in-house counsel and business leaders to identify top legal talent. With its focus on transactional practices and its assessment of firms based on deal complexity, innovation, and market impact, these results reaffirm Blumenthal Richter & Sumet’s consistent standing as a trusted advisor in high-stakes, business-critical transactions.

 

Thailand Forms Task Force Ahead of U.S. Trade Tightening

Andreas Richter (Senior Partner) 

Overview

Thailand will establish a 50-member special task force in October 2025 to address the expected surge in certificates of origin required under new U.S. trade rules. The initiative comes as U.S. authorities step up scrutiny of Southeast Asian exports, particularly to prevent transshipment—including the re-routing of Chinese sourced goods through third countries without adding value to avoid higher tariffs.

Key Developments

  • Certificate Surge
    Thailand anticipates a dramatic increase in certificate of origin requests, rising from approximately 70,000 per year to several million.
  • Tariff Discrepancies
    While general tariffs on Thai exports to the U.S. have been adjusted downward to around 19% (from an earlier proposal of 36%), goods suspected of improper origin could face duties as high as 40%.
  • Trade Complexity
    The forthcoming U.S. measures will introduce stricter regional value-content requirements, require more extensive documentation, and intensify cost and origin verification. These rules remain under negotiation but signal a far more rigorous compliance environment.
  • Thailand’s Trade Profile
    In 2024, Thailand exported roughly USD 55 billion worth of goods to the U.S. while importing about USD 80 billion in goods from China—highlighting its position as a regional manufacturing hub heavily exposed to shifts in global supply chains.
  • Business Concerns
    Local industry leaders caution that the increased documentation and compliance burden could slow shipments and raise costs for exporters.

What This Means for Businesses

StakeholderImplications
ExportersAnticipate heavier administrative requirements; ensure full compliance with origin rules and value-added thresholds.
Supply ChainsRe-evaluate reliance on Chinese inputs and consider diversification or relocation of sourcing.
Trade CounselPrepare for enhanced verification measures; establish compliance protocols and audit procedures.
Customs & LogisticsScale up capacity to process higher certificate volumes; strengthen tracking and record-keeping systems.

 

Understanding “Transshipment” in International Trade

Definition:
Transshipment is the transfer of goods through an intermediate country before reaching the final destination. In logistics, it may involve changing vessels, shifting transport modes, or using hub ports to consolidate shipments.

Legitimate Uses:

  • Consolidating or breaking down shipments at a hub.
  • Switching modes of transport (e.g., ship to truck).
  • Routing through major hubs to reach remote markets.

Compliance Concerns:
In trade enforcement, transshipment also refers to routing goods through a third country with little or no substantial transformation to misrepresent their true origin. This practice is often used to bypass tariffs or quota restrictions.

U.S. trade authorities now treat such practices as high-risk for tariff evasion, triggering higher duties and intensified enforcement. Countries such as Thailand are under pressure to tighten customs oversight, enforce strict origin verification, and prevent misuse of transshipment channels.

Conclusion

Thailand’s decision to form a dedicated task force reflects the urgency of adapting to rapidly changing U.S. trade policies. Exporters and supply chain operators should act now to:

  • Strengthen compliance systems.
  • Reconsider sourcing strategies.
  • Prepare for detailed rules-of-origin verification.

Proactive steps today will help businesses safeguard market access and avoid costly disruptions as enforcement intensifies.

Blumenthal Richter & Sumet Relocates to One Bangkok, Strengthening Commitment to Collaboration, Innovation, and Sustainability

Bangkok, September 1, 2025 – Blumenthal Richter & Sumet (BRS) has officially relocated to its new offices at One Bangkok Tower, 39th Floor, Wireless Road, Lumphini, Pathum Wan, Bangkok 10330, marking a significant milestone in the firm’s growth and ongoing commitment to delivering collaborative legal services, thought leadership, and sustainable business practices.

The move follows a period of strong expansion for the firm, which since 2021 has welcomed four new partners, completed two strategic acquisitions—an established practice and a boutique law firm—and launched dedicated China and Japan desks to better serve its international client base.

Home to more than 70 employees, the new office provides a modern and spacious work environment designed to foster collaboration across practice groups. In addition to upgraded facilities such as a canteen and lounge, the office includes dedicated event and seminar spaces to host clients and members of the wider legal and business community, further strengthening BRS’s position as a hub for innovation and thought leadership.
Located in Thailand’s first fully integrated district built to global sustainability standards, One Bangkok offers advanced infrastructure, eco-friendly design, and seamless connectivity. This aligns with BRS’s forward-looking vision and long-standing commitment to environmental responsibility.

For over 25 years at its previous premises, Blumenthal Richter & Sumet has grown into a full-service, independent international law firm, advising on corporate and commercial transactions across Thailand and Southeast Asia. The relocation to One Bangkok represents the next chapter in the firm’s journey, providing the space, facilities, and environment to continue delivering exceptional service to clients for decades to come.

Telephone number remains unchanged: +66 (0)2-022-1000

It has come to our attention that a phishing email falsely purporting to be a message from Blumenthal Richter & Sumet has been circulating.

What actions should you take:

  • Avoid interaction with any links or attachments in suspicious emails.
  • If a suspicious email has been received it should be immediately deleted.
  • Do not respond to the sender’s request for any personal information.

We are actively investigating this matter and have notified relevant local authorities. If you have any questions or need assistance, contact us at [email protected]. Thank you for your attention and cooperation.