Regional Operating Headquarters (ROH) and Treasury Center (TC) Thailand’s policy to promote...
12
Regional Operating Headquarters (ROH) and Treasury Center (TC) Thailand’s policy to promote regional investment
-
Upload
shanna-jenkins -
Category
Documents
-
view
220 -
download
5
Transcript of Regional Operating Headquarters (ROH) and Treasury Center (TC) Thailand’s policy to promote...
Regional Operating Headquarters (ROH) and
Treasury Center (TC)Thailand’s policy to promote
regional investment
2
• ROH Tax incentives Non-tax
incentives
• Treasury Center General
Regulation Tax system
relating TC
Policy Measures to promote ROH & TC
3
Country BenchmarkingTax Incentives
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Launched 2002 1986 1995
Income from qualified Services -Business-Royalties-Interest
10%, unlimited period
RHQ: 15%, 3(+2) years
IHQ: 0, 5 or 10%, 5-20 years
Exempted, 10 years
RHQ: Regional Headquarters IHQ: International HeadquartersOHQ: Operational Headquarter Company
4
Country BenchmarkingTax Incentives
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Dividends Exemption Exemption Exemption
Depreciation Allowance
Accelerated ratio
None None
5
Country BenchmarkingTax Incentives
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Expat ROH employees • income
from overseas work• Other
income from ROH
Exempt, 4 years
15%, 4 years
10%, 5 years
20% (normal rate)
Requires additional approval from MIDA
Exempt, 3-5
25% (normal rate)
6
Country ExperiencesCriteria
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Minimum paid up capital requirement
Minimum business spending requirement
7
Country BenchmarkingCriteria
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Employment and remuneration
8
Country BenchmarkingCriteria
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Minimum related companies requirement
9
Country BenchmarkingCriteria
Thailand (ROH)
Singapore (RHQ/IHQ)
Malaysia (OHQ)
Qualified services
Require minimum of 3 qualifying services
ROH Policy Challenge
Tax IncentivesTax Incentives
CriteriaCriteria
ROHROH
ROHROH
Present
Future
Singapore/Malaysia
Thailand
11
Tax system relating TC
• Exempted Specific business tax (SBT)
on interest generated by lending to associated companies (>25%)
• Reduced SBT rate to 0.01% on treasury portfolio transaction
• Import duty compensation
Ministry of Finance of Thailand
