RHO - extension of tax breaks
As you may know, overseas companies who est. their regional operating head-office (RHO) in Thailand are entitled to certain tax breaks and priviledges (companies that have taken advantage of this so far include GE Capital). It would now seem that the government is going to go on a drive in 2006 to entice more companies to est. their RHOs in Thailand by doubling these incentives.
Quote:
Thai Headquarters Incentives
The cabinet today will consider doubling tax privileges for foreign companies with regional operating headquarters in Thailand to four years, according to Satit Rungkasiri, a deputy director-general for the Revenue Department.
Revenues on foreign operations repatriated to locally operated headquarters have been waived from tax calculations.
Over the past three years, 27 firms have registered for regional operating headquarters (ROH) status, including Makro Asia Management, Global Industries Offshore and Yuasa Trading (South Asia).
Firms applying for ROH status must have paid-up capital of at least 10 million baht, be domiciled in Thailand, offer services to subsidiaries and branches in at least three other countries, and can be Thai or foreign owned.
An ROH firm will receive a special corporate tax rate of 10%, compared with the normal 30%, based on revenues received from overseas branches and subsidiaries or R&D activities. Dividend income is also waived from tax liability, with firms also eligible to receive special depreciation charges on fixed assets.
source: Bangkok Post 10/01/2005
