Thailand To Cut Tax For Regional HQs

By Editorial 31 May, 2010

Thailand’s Deputy Finance Minister, Pradit Phataraprasit, has disclosed that the government plans, from June 1 this year, to provide substantial tax incentives for domestic and foreign companies establishing regional headquarters in the country.

The incentives would include zero taxation for income earned by such headquarters from services provided outside Thailand, while they would only be subject to a 10% flat corporate tax for 15 years on earnings made within the country. Services covered by the tax breaks include research and development, business administration, marketing and sales promotion, and other advisory services.

The Bank of Thailand is to offer assistance by helping with their foreign transaction requirements, while the Board of Investment will also provide aid in speeding up all necessary official procedures and consents.

Furthermore, foreign nationals employed by regional headquarters will be offered a flat individual income tax rate of 15% for a total of eight years, compared with the usual progressive rates up to 37%. This flat rate applies if at least 50% of the headquarter's earnings are from overseas services.

The Finance Ministry hopes that these incentives, which it believes will be the most generous in the region, will improve the country’s investment climate

Tags: Individuals | Expatriates | Tax | Investment | Business | Law | Corporation Tax | Thailand | Group Taxation | Corporate Headquarters | Multinationals | Tax Breaks | Individual Income Tax |


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