Customs Incentive Schemes

Tax Compensation

Tax compensation is one of the government measures to lower the production cost of goods for exportation to boost their worldwide competitiveness against foreign products both at international and domestic levels. The compensation has to be complied with the criteria and conditions as prescribed by the Tax and Duty Compensation of Exported Goods Produced in the Kingdom Act B.E.2524 (1981).

Tax compensation means government compensate exporter in the form of Tax Coupon for goods manufactured in the country, including the goods sold in the country to the government agencies or state enterprises under the loan projects or foreign aids and the goods sold to international organizations or other organizations with the rights to import such goods into Thailand with tax and duty exemption under the Customs Tariff Decree as tax compensation that manufacturer paid in every manufacturing steps that are VAT on materials, tools, parts, machine, fuel, other energy to manufacture goods, but excluding income tax, royalty, tax drawback under any other laws, local tax and tax eligible by proceedings committee for tax and duty compensation on the exports manufactured in Thailand announcement. Tax compensation is complied with compensation rates in accordance with proceedings committee for tax and duty compensation on the exports manufactured in Thailand announcement.