The Cabinet has approved income tax exemption for military personnel participating in the early retirement program, exempting both compensation payments and Government Pension Fund (GPF) benefits from tax calculation.
On 27 July 2026 at the Government House, Ms. Lalida Pertviwatana, Deputy Spokesperson of the Prime Minister's Office, revealed that the Cabinet approved the principle of a draft ministerial regulation under the Revenue Code, proposed by the Ministry of Finance, to exempt personal income tax for military officers joining the early retirement program of the Ministry of Defense for fiscal years 2025–2027.
The measure covers both compensation payments received under the program and benefits from the Government Pension Fund (GPF) to alleviate the tax burden on participants and support a more efficient restructuring of government personnel, aligning with the Cabinet resolution dated 9 July 2024 aiming to optimize personnel numbers, reduce senior officer congestion, and save long-term personnel budget.
Ms. Lalida stated that this tax benefit exempts the lump-sum compensation received from the Ministry of Defense and benefits from the GPF upon retirement from being included in personal income tax calculations for taxable income starting from the 2025 tax year onward, applying the same principles as the Ministry of Defense’s early retirement program during fiscal years 2014–2018.
The target group includes military officers at the ranks of colonel, navy captain, and air force group captain or higher, aged 50 or older, with at least 25 years of service and a remaining service period of at least two years. Participants will receive a lump-sum compensation approximately 7–10 times their final monthly salary including position allowances, along with other specified benefits.
The Deputy Spokesperson added that this tax exemption will allow participating military personnel to receive their full compensation, serving as an incentive to achieve the personnel restructuring goals. Although the Ministry of Finance estimates a loss of about 40 million baht annually in personal income tax revenue, totaling 120 million baht over the three-year program period, this is considered worthwhile to ease the burden on civil servants and enable more efficient government personnel budget management in the long term.