Prakas no. 170 on Tax Incentives for the Agricultural Sector was released by the Ministry of Economy and Finance on March 20, 2024. The purpose of this regulation is to combine prior tax incentives into one comprehensive document and broaden the range of agricultural products that qualify for these advantages. The tax incentives are applicable to activities such as planting, producing, supplying locally, and exporting various agricultural products including paddy rice, rice, corn, beans, peppers, cassava, cashew nuts, rubber, Pailin longans, mangos, and bananas. Additionally, the incentives also cover livestock farming, aquacultures, and the use of local oil palm products as raw materials for animal feed production.

Enterprises that fall under the jurisdiction of this Prakas are qualified to get several tax benefits, such as

• The temporary exemption from monthly advance payment of income tax and the minimum tax until the conclusion of 2025.
• Exemption from the requirement to withhold compensation for services rendered by individuals not subject to self-assessment until the conclusion of 2025.
• The value-added tax will be borne by the State.

In order to be eligible for these tax advantages, agricultural firms must adhere to specific requirements stated in this Prakas, including maintaining accurate financial records and submitting tax reports accurately, among other restrictions. Failing to comply with these rules may result in the withdrawal of the tax benefits.