Thailand’s Revenue Department has approved a new investment promotion aimed at encouraging more foreign companies to establish international headquarters (IHQ) and international trading centers (ITC) in the kingdom.
The policy will offer more incentives and benefits for IHQs and ITCs, and one major improvement from previous incentive programmes will be that the new policy provides qualified companies with more tax and non-tax privileges.
“Thailand is already well positioned as a regional hub for international headquarters and international trading centers, offering companies several advantages that include our central location, strong infrastructure and low tax rates,” said Korbsiri Iamsuri, Director at the Board of Investment New York office.
“The new incentive policy for international headquarters and international trading centers provides foreign companies yet another advantage to operate in the country.”
Foreign companies that launch an IHQ or ITC in Thailand could now be eligible for corporate income tax reductions or exemptions for up to 15 years, a fixed income tax rate of 15 percent for qualified expatriates, and withholding tax exemptions.
In addition, the Thailand Board of Investment (BOI), offers foreign companies further non-tax benefits and services that include majority or total foreign ownership, permission to bring skilled workers and experts to promoted activities, permission to own land, repatriation of foreign currency and exemption of import duties on certain machinery.
In order to make it easier for companies to establish IHQs and ITCs in Thailand, the country expanded the range of services at its One -Start One-Stop Investment Center (OSOS) by bringing together additional investment-related government and private agencies to speed up business operation procedures.
The OSOS will offer information and consultation services for companies interested in investing in IHQs and ITCs, as well as procedural services that include license applications. Through the OSOS investors can access 38 agencies from 14 government ministries and state-owned enterprises and nine private sector organisations.
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