APAC Tax Matters: 13th edition

Thailand

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At a glance

  • Proposal for relaxed conditions and improved incentives for Regional Operating Headquarters
  • Delay in effective date for new investment promotion policy

Proposed relaxing of conditions and better incentives for Regional Operating Headquarters (ROH) in Thailand

There are currently two ROH schemes enforced in parallel to entice investors to centralize their regional functions in Thailand. The first scheme provides tax incentives for unlimited periods while the incentives under the second scheme are granted for a limited time and require a registration by 15 November 2015.

Given that the registration deadline for the second scheme is coming, the Revenue Department is now considering launching a third scheme. In addition to matching the benefits on offer under the second scheme, the third scheme will offer further relaxed conditions and greater tax benefits. 

It is hoped that by so doing, Thailand can be more competitive with other countries in the region. The revised proposals include, but are not limited to, better tax incentives, more relaxed conditions and claw-back rules, clearer definitions and conditions, etc. 

Presently, the Revenue Department is in the process of gathering feedback from stakeholders and considering the wish lists of practitioners. Further steps will involve a thorough consideration of the proposals, public hearings and the application of the relevant legislative processes prior to an official enactment of the third scheme.

Update: Effective date for Thailand’s revised investment promotion policy

The new investment promotion policy originally proposed by the Board of Investment (BOI) to be effective by mid 2013 has now been delayed. The new effective date is expected to be at the beginning of 2015.