Thai Corporate Legal Services Explain Tax Breaks For Rohs
Since June 1 this year, Thailand has seen some of the most generous tax breaks in
the South East Asian region for companies setting up new regional headquarters in the area. Well-established companies can operate completely free of tax in Thailand, for up to 15 years, creating some substantial savings. Today Thailand lawyers specializing in taxation look at some of the associated issues.
What is an ROH?
In order to be considered a Regional Operating Headquarters under Thai law, corporate legal services in Thailand advise that the following conditions must be met:
The company must conduct the business of providing services, of types such as procurement of raw materials, research and development, business planning and management, technical support, financial advice, training, etc.
The services must be provided branches or companies affiliated with the new ROH, located in at least 3 different countries outside Thailand.
The company must have paid-up capital of at least TB10 million.
The conditions mean that it will only be well-established companies that are able to take advantage of the tax breaks.
Renewed Tax Breaks for ROHs
Thailand lawyers say that these are some of the most impressive tax breaks ever seen, especially for foreign businesses which are usually fairly restricted under Thai law. The range of tax incentives includes:
0% tax rates for new ROHs for services provided outside of Thailand, for a period of 15 years
A 10% corporate taxation rate for services provided within Thailand, compared to the standard rate of 30%, for a period of 15 years
15% personal income tax rate for foreign nationals employed by the new regional headquarters.
Thai lawyers note that the individual income tax breaks will only apply if at least 50% of the new headquarters' earnings come from overseas services. The taxation department will take into account only the new branch's pre-tax earnings, rather than the entire company's.
The income eligible for the reduction in tax is actually quite wide-ranging. It includes payments for corporate services or 'standard income', but also royalty payments, dividends and interest payments. Thai business lawyers note that it can be difficult to qualify, but the tax breaks are certainly worthwhile, coming with as few conditions as they do.
Additional Incentives
The new tax breaks created under Thai law are substantial. However, Thai business law experts are reminding businesses that there are plenty of other incentives to take advantage of, also. These include:
Assistance from the Bank of Thailand with setting up foreign transaction accounts and processing foreign transactions
A fast-tracked official procedure and consent service from the Thai Board of Investment (BOI)
APAs, or Advance Pricing Agreements, which have been extremely popular with multinationals operating in Thailand for the certainty they create in transfer pricing enforcement, as well as the minimization of penalties.
by:Gregory Smyth
Calgary Security Alarms ltd for service & installation of ge,dsc,ademco,honeywell equipment,home or business alarm/monitoring Radiation Therapy: Improving Home Efficiency With Home Appliances Safety Aspects Of Sewer Maintenance Boekel Incubators For Medical Laboratories The Role Of Microbiology Media In The Laboratory Lake Worth Used Car Drivers Witness New Focus On Safety From Toyota Esophageal Cancer Radiation Treatment Actel's Radiation-tolerant Flash Based Fpgas Now Qualified For Spaceflight Systems Things You Need To Know About Kippah How To Select A Kippah? Laboratorios Farmaceuticos Rovi, S.a. (rovi) - Financial And Strategic Analysis Review --- Aarkstore Shin Nippon Biomedical Laboratories Ltd 2395 Financial And Strategic Analysis Review --- Aarkstore