Foreign companies locating their regional operating headquarters in Thailand will enjoy more tax incentives, according to the Thai Government’s Public Relations Department.
The increase in the incentives being offered is among a number of initiatives by the Thai Government to attract foreign investment.
The Government believes that the new incentives will make Thailand the most competitive country in the region and enable it to remain competitive in the global economy.
The Thai Cabinet has recently approved a package of measures to promote the establishment of regional operating headquarters based in Thailand . The package will increase the relative attractiveness of Thailand as the hub for regional operating headquarters.
According to the package, regional operating headquarters will enjoy, for 15 years, a tax break for income earned outside Thailand and only 10 percent corporate income tax on income earned domestically. The expatriate staff of these regional operating headquarters will also benefit from a reduced personal income tax rate of 15 percent for eight years. These measures became effective on June 2, 2010.
Prime Minister Abhisit Vejjajiva pointed out that these incentives would help restore confidence in Thailand among foreign companies and revive the country’s attractiveness. He said that Thailand would transform itself from a low-cost production based into a producer of high-technology, high-quality products.
Investment incentives have already been offered for projects meeting this objective, such as research and development activities, high-technology production, and human resource development. Starting from May 2010, foreign experts and technicians working on research and development projects have been allowed to have their visas and work permit extended from two years to four years.
He also emphasised that Thailand has always given its best efforts in ensuring the continuity and safety of foreign businesses and investments in the country./.
The increase in the incentives being offered is among a number of initiatives by the Thai Government to attract foreign investment.
The Government believes that the new incentives will make Thailand the most competitive country in the region and enable it to remain competitive in the global economy.
The Thai Cabinet has recently approved a package of measures to promote the establishment of regional operating headquarters based in Thailand . The package will increase the relative attractiveness of Thailand as the hub for regional operating headquarters.
According to the package, regional operating headquarters will enjoy, for 15 years, a tax break for income earned outside Thailand and only 10 percent corporate income tax on income earned domestically. The expatriate staff of these regional operating headquarters will also benefit from a reduced personal income tax rate of 15 percent for eight years. These measures became effective on June 2, 2010.
Prime Minister Abhisit Vejjajiva pointed out that these incentives would help restore confidence in Thailand among foreign companies and revive the country’s attractiveness. He said that Thailand would transform itself from a low-cost production based into a producer of high-technology, high-quality products.
Investment incentives have already been offered for projects meeting this objective, such as research and development activities, high-technology production, and human resource development. Starting from May 2010, foreign experts and technicians working on research and development projects have been allowed to have their visas and work permit extended from two years to four years.
He also emphasised that Thailand has always given its best efforts in ensuring the continuity and safety of foreign businesses and investments in the country./.
