Thailand is planning to launch its first formal filming incentive program in 2017, which is said to offer a filming cash rebate of 15% of every 30 million baht (approximately $860,000 USD) spent in the country. Additional rebates could also be earned, worth 10% of spend, if the movie promoted a positive image of Thailand, and a further 5% if it also employed Thai performers. The scheme would be capped at $2.86 million per year, though government spokesman Sansern Kaewkamnerd suggested that the actual figure should be reviewed each year.
In addition, Thailand has been signing the Double Taxation Treaty with a number of countries. The Treaty is designed to prevent foreign filmmakers of member countries from being taxed twice in Thailand and again in their home country. In general, all income earned in Thailand is subject to a personal income tax ranging from 5% to 37% for an individual depending on his/her incomes; and 30% corporate income tax of the corporation net income.
To find out more please visit the Thailand Film website.
Film Production Rebate
A rebate (or grant) is funds paid to the production company based on the amount of qualifying expenditures, or jobs created in the state or country by the project. The production company does not need to file a tax return for rebates.
Film Refundable Tax Credits
A refundable tax credit is similar in function to a rebate, however, the production company must file a tax return to claim it, and receive a credit for taxes owed. Tax credits can sometimes be used as collateral to obtain a loan so that the production company receives an advance, which is usually discounted.
Film Transferable Tax Credits
A transferable tax credit may be sold or assigned to a local taxpayer. Some states offer transferable tax credits, which allow production companies to sell or get a refund for tax credits that they are not able to use. Many times brokers are used to perform these transactions.
Film Non-Refundable, Non-Transferable Tax Credits
This type of tax credit can be used to offset a production company’s current tax liability, and can be carried forward for a set time, but not transferred to third parties.
The information stated herein is for reference only and based on a source using data as of January 2015. Make sure you consult a qualified tax adviser and professional who is familiar with tax incentive programs to determine the best fit for your project.