Tax breaks for film makers
September 6, 2010 by Rapeepat Mantanarat
Filed under News
BANGKOK, 6 September, 2010 – The Thai Cabinet has approved in principle tax relief measures to attract foreign film makers to Thailand based on a proposal presented by the Ministry of Tourism and Sports late last month.
The Ministry of Finance will now draft detailed measures and submit it to the Cabinet for approval later this month.
The approved measures include:
100% VAT rebate (direct from the Revenue department or from the Tourism Development Department based on receipts with VAT payment record);
Refund 15 to 20% on other taxes in the form of a credit to be used for subsequent film projects in the country;
Foreign actors will not be required to pay tax on their income from the film while shooting in Thailand;
Film crews staying in Thailand for 15 days or longer will be entitled to an immigration fast-track service at international airports in the country.
Both Singapore and Malaysia offer similar incentives.
Ministry of Tourism and Sports reasoned the main benefit would be from future rebates on taxes that can represent about 10% of the film investment. The VAT refund would have minimal impact, the ministry argued, claiming filming would encourage an increase in VAT from suppliers dealing with the film company.
