BANGKOK, Thailand – The Cabinet has approved in principle a new incentive scheme proposed by the Ministry of Culture encouraging foreign companies to outsource digital content production to Thai firms. The measure is designed to boost foreign income, strengthen Thailand’s digital content industry, and enhance job creation and skill development for Thai workers.
Under the scheme, foreign companies that hire Thai firms to produce digital content with a contract value of at least 5 million baht (157,500 USD) will be eligible for a 20% cash rebate. Thai firms eligible to participate must be registered legal entities operating in animation, visual effects (VFX), or post-production services. The firms must have at least half of their shareholders and board members be Thai nationals, employ Thai workers for at least 80% of total staff costs, operate for a minimum of two years, and have a physical office in Thailand.
The Ministry of Culture estimates an annual budget requirement of around 500 million baht. For fiscal year 2026, the Ministry plans to request 200 million baht from the central emergency budget, and from fiscal year 2027 onward, approximately 500 million baht per year from the regular state budget.
Prime Minister Anutin Charnvirakul emphasized in his policy statement to Parliament on 29 September 2025 that digital technology is key to creating new income opportunities for Thai citizens. This incentive aligns with that vision by attracting foreign-funded projects while helping Thai talent gain expertise in high-skill digital production.
According to the Thai Animation and Computer Graphics Association (TACGA), Thailand’s digital content industry generated 3.22 billion baht in production value in 2024, 2.3 billion baht from foreign outsourcing, and 1.02 billion baht from domestic work. However, the absence of targeted support measures has reduced Thailand’s competitiveness in comparison with countries offering more generous rebates. The newly approved scheme is expected to strengthen Thailand’s position as a competitive regional production hub in the global market, attract more high-value international investment, expand job opportunities, and retain highly skilled talent within the country. (PRD)
