{"id":1741,"date":"2019-01-30T08:27:50","date_gmt":"2019-01-30T08:27:50","guid":{"rendered":"https:\/\/orbis-alliance.com\/?p=1741"},"modified":"2020-12-02T11:42:44","modified_gmt":"2020-12-02T11:42:44","slug":"thailand-new-tax-incentives-for-international-business-centers","status":"publish","type":"post","link":"https:\/\/orbis-alliance.com\/fr\/orbis-news\/thailand-new-tax-incentives-for-international-business-centers","title":{"rendered":"THAILAND \u2013 New Tax Incentives for International Business Centers"},"content":{"rendered":"

On 28th <\/sup>December 2018, the Thai Government enacted a new tax law introducing an International Business Center (IBC)<\/strong> tax regime, replacing the former Regional Operating Headquarters (ROH) and the International Headquarters (IHQ).<\/p>\n

An IBC is a company limited incorporated under the laws of Thailand with the following objectives:<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Provide managerial, technical, support services to affiliates in Thailand and\/or in foreign countries,<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Provide financial management services to affiliates in Thailand and\/or in foreign countries,<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 International trading activities<\/p>\n

A company willing to benefit from the IBC tax structure must file an application to the Thai Revenue Department and comply with the following conditions:<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Fully paid-up capital of not less than THB 10 million,<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Have 10 employees or more with sufficient knowledge and skills for an IBC or<\/em><\/strong> have 5 employees or more in case the company only provides financial management services,<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Have operating expenses of not less than THB 60 million to recipients in Thailand per accounting year,<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Comply with other rules and regulations as prescribed by the Thai Revenue Department.<\/p>\n

For 15 accounting years from the date of approval by the Thai Revenue Department, an IBC is eligible to the following tax incentives:<\/p>\n\n\n\n\n\n\n\n
Corporate Income Tax<\/td>\n8% when annual operating expenses are > THB 60 million and < THB 300 million<\/p>\n

5% when annual operating expenses are > THB 300 million and < THB 600 million<\/p>\n

3% when annual operating expense are > THB 600 million<\/p>\n

Exception<\/u>: Exempt from Corporate Income Tax on dividends derived from affiliates in Thailand and\/or in foreign countries<\/td>\n<\/tr>\n

Withholding Tax on overseas payments<\/td>\nExempt on interest payments to corporate lenders registered in foreign countries<\/td>\n<\/tr>\n
Personal Income Tax<\/td>\nFixed rate of 15% for foreign employees<\/td>\n<\/tr>\n
Profits Remittance Tax<\/td>\nExempt on dividends payments to corporate shareholders in foreign countries (usual rate: 10%)<\/td>\n<\/tr>\n
Specific Business Tax<\/td>\nExempt on financial management services to affiliates in Thailand and\/or in foreign countries (usual rate: 3.3%)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If you wish to obtain more information or assistance, please do not hesitate to contact us at <\/span>contact@orbis-alliance.com<\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

On 28th December 2018, the Thai Government enacted a new tax law introducing an International Business Center (IBC) tax regime, replacing the former Regional Operating Headquarters (ROH) and the International Headquarters (IHQ). An IBC is a company limited incorporated under the laws of Thailand with the following objectives: –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Provide managerial, technical, support services to […]<\/p>\n","protected":false},"author":8,"featured_media":1742,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,134],"tags":[],"class_list":["post-1741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-orbis-news","category-thailand"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t