On November 19, 2025, the Ministry of Economy and Finance issued Prakas No. 962, introducing tax incentives aimed at supporting the agricultural sector. These measures apply to enterprises involved in the planting, production, local supply, and export of key commodities, including paddy rice, corn, beans, peppers, cassava, cashew nuts, rubber, Pailin longans, mangoes, bananas, livestock, aquaculture, and local oil palm products used for animal feed.

Key Incentives (Valid until December 31, 2027):

• Income and Minimum Tax: Suspension of monthly prepayment of tax on income and minimum tax obligations.
• Withholding Tax: Exemption from withholding obligations on payments for services rendered by individuals or entities not under the self-assessment regime.
• VAT: Value-Added Tax on local supplies of goods and services to eligible agricultural enterprises will be borne by the state.

Conditions and Compliance

To qualify, enterprises must maintain proper accounting records and file tax returns accurately. Failure to meet these conditions will result in the revocation of incentives.

Effective Date and Policy Context

Effective January 1, 2026, the Prakas extends the support framework established by Prakas No. 170 (March 2024). By limiting the duration to two years with the possibility of renewal, the government signals a strategy to foster sector development while avoiding long-term fiscal dependency.