Thailand Offers Generous Incentives for HQ, Foreign Trading Cos., Treasury Centers

Thailand has long offered tax and other incentives to companies with a regional operating headquarters (ROH) in Thailand, but it has been difficult to meet ROH regime requirements, making the incentives uncompetitive with those offered by other Southeast Asian countries. Thailand, therefore, recentl...

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Bibliographic Details
Published in:Journal of International Taxation 2017-01, Vol.28 (1), p.34
Main Authors: Dewar, Ninee Supornpaibul, Lamont, Greg, Weerawutiwong, Somboon, Rao, Prema
Format: Article
Language:English
Subjects:
Corporate income tax
Expatriates
Financial management
International taxation
International trade
Investments
Manufacturing
Multinational corporations
Personal income
Raw materials
Royalties
Stockholders
Tax exemptions
Tax incentives
Tax rates
Withholding taxes
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Summary:Thailand has long offered tax and other incentives to companies with a regional operating headquarters (ROH) in Thailand, but it has been difficult to meet ROH regime requirements, making the incentives uncompetitive with those offered by other Southeast Asian countries. Thailand, therefore, recently revamped its incentive regimes, creating a new international headquarters company (IHC) regime, with add-on benefits for treasury centers (TC), and an international trading center (ITC) regime. The most prominent incentives include a full corporate income tax (CIT) exemption on qualifying income for 15 years, withholding tax exemptions, and other nontax benefits. Thailand now offers one of the most generous incentives packages in Asia, making it an ideal location for headquarters and TC operations. Further, given the recent controversies regarding illegal state aid in Europe, the ITC regime may be especially attractive for multinational enterprises operating a principal structure.
ISSN:1049-6378