HQs wooed with tax incentives
THE CABINET has approved the Finance Ministry’s proposal for more tax incentives to facilitate the creation of International Headquarters and International Trading Centres in Thailand.
IHQs and ITCs in the Kingdom currently enjoy both tax and non-tax benefits, including complete income-tax exemption for out-out transactions, while in-out transactions will be eligible for an income-tax rate of 10 per cent instead of the normal 20 per cent.
The tax exemption will be granted for any fees derived from services rendered to foreign associate companies – offshore service fees – while a tax rate of 10 per cent will be applied to fees derived from services rendered to local associate companies – onshore service fees – with the condition that the total onshore service fees do not exceed the offshore service fees.
Other current tax benefits include withholding-tax exemption on dividend payments and royalties, and a 15-per-cent tax rate for expatriate income.
