Prime Minister Abhisit Vejjajiva (right) is seen presiding over the seminar on the privileges for ROHs while Deputy Finance Minister Pradit Phataraprasit (left) looks on.

Thailand plans to offer a package of tax benefits for companies setting their regional operating headquartres (ROHs) in this Southeast Asian country as the package will be effective from June 1.

The tax package, aimed at attracting more Thai and foreign companies to use Thailand as the base for their regional operations, includes a 15-year corporate income tax holiday for the earnings from the services these regional headquartres provide to overseas companies and ten percent corporate income tax for the earnings received from services provided to the entities inside Thailand, instead of normal 30 percent corporate income tax.
In addition, the expatriate employees at these regional headquartres will be required to pay only 15 percent personal income tax for up to eight years, instead of the current progressive rates of 5-37 percent, in the case that such ROHs earn at least one half of the income from the services overseas.

The ROHs can qualify for the tax benefits by their services to the clients in an overseas country in the first year, then to those clients in two overseas countries by the third year and three countries by the fifth year while such ROHs must have their expenses within Thailand worth not less than 15 million baht a year or invest 30 million baht in foreign currency.

The services such ROHs provide to its clients may be the general management of business and administration, sourcing of raw materials, parts and finished products, research and development, marketing and sales promotion, regional human resources training, business advisory services, investment feasibility studies and analyses, credit management and control, or other services approved on a case-by-case basis.
The tax benefits had been officially announced by Deputy Finance Minister Pradit Phataraprasit during a seminar on ROHs Establishment, organised in Bangkok by the Revenue Department on Monday.

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