02 international headquarter and international trading ... international headquarter an… · itc :...
TRANSCRIPT
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INTERNATIONAL HEADQUARTERS & INTERNATIONAL TRADING CENTER
Mrs. Patricia MongkhonvanitDirector, Bureau of Tax Policy and Planning
The Revenue Department
- Scope of business and special tax measures for IHQ and ITC -
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CONTENTS
• IHQ : International Headquarters• Activities• Qualifications• Tax Benefits
• ITC : International Trading Center• Qualifications• Tax Benefits
• Application Procedures
• Contacts
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INTERNATIONAL HEADQUARTERS
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IHQ : INTERNATIONAL HEADQUARTERS
A company incorporated under Thai law which :
Provides managerial, technical, supporting services to its associated enterprises
Provides financial management service to its associated enterprises
Performs offshore trading activities
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IHQ : INTERNATIONAL HEADQUARTERS
Managerial or technical services
• General management, business planning and business coordination
• Procurement of raw materials and parts• Research and development of products• Supporting technical assistance• Marketing and sale promotion• Financial advisory services• Economic and investment analysis and research• Credit management and control
Supporting services
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IHQ : INTERNATIONAL HEADQUARTERS
• Corporate Treasury Centers under BOT regulations
• Borrowing and lending in Thai Baht
Financial management service
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IHQ : INTERNATIONAL HEADQUARTERS
• Purchases and sales of goods overseas (Out-Out)
• Provides international trading related services
Offshore trading activities
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IHQ : ASSOCIATED ENTERPRISES
Box 1A company which holds
shares directly or indirectly in IHQ
not less than 25% of the total capital
Box 4A company which has the
power to control or supervise IHQ
Box 2A company in which IHQ is
directly or indirectly a shareholder not less than 25%
of total capital
Box 5A company in which IHQ has
the power to control or supervise
Box 3A company in which the
company in Box 1 is directly or indirectly a shareholder not less than 25% of total
capital
Box 6A company in which the
company in Box 4 has the power to control or supervise
IHQIHQ
B Co.B Co.
A Co.A Co.
D Co.D Co.
C Co.C Co.
A1 Co.A1 Co. A2 Co.A2 Co.
B1 Co.B1 Co.B2 Co.B2 Co.
S Co.S Co.
25%/Control
25%/Control
25%/Control
25%/Control
Box 1 & 4
Box 2 & 5
Box 3 & 6
Box 3 & 6
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IHQ :QUALIFICATIONS
Must provide managerial, technical, supporting services or financial management to at least one offshore associated enterprise
Minimum paid-up capital = THB10 million
Minimum operating expenses paid to recipients in Thailand = THB15 million
Benefit duration = 15 accounting periods
* If the IHQ fails to meet the above qualifications in any accounting period, the IHQ will disqualify for all tax benefits in such accounting period including tax benefit for its expats
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IHQ’S TAX BENEFITS
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IHQ :CIT EXEMPTION
• Income from managerial or technical or supporting or financial management services.
•Royalties•Dividends•Capital gains
Income from offshore associated enterprises
• Income from out-out trading including transshipment or transitunder Thai Customs Law
• Income from providing international trading related services to foreign companies
Income from offshore trading & related services
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IHQ :CIT RATE REDUCTION FROM 20% TO 10%
• Income from managerial, technical, supporting orfinancial management
• Royalties
Income from associated enterprises in Thailand
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IHQ :SBT EXEMPTION
Gross receipts from lending to associated enterprises
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IHQ :CIT EXEMPTION ON OUTBOUND PAYMENT
Dividends paid out ofCIT exemption income
Interests on loan made for onlending toassociated enterprises
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IHQ :PERSONAL INCOME TAX FOR EXPATRIATES
on gross income and all benefitsderived from employment
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INTERNATIONAL TRADING CENTER
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ITC :QUALIFICATIONS
Minimum paid-up capital = THB10 million
Minimum operating expenses paid to recipients in Thailand = THB15 million
Benefit duration = 15 accounting periods* If the ITC fails to meet the above qualifications in any accounting period, the ITC will disqualify for all tax benefits in such accounting period including tax benefit for its expats
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ITC’S TAX BENEFITS
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ITC :CIT EXEMPTION
• Income from out-out trading including transshipment or transitunder Thai Customs Law
• Income from providing international trading related services to foreign companies
Income from offshore trading & related services
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ITC :CIT EXEMPTION ON OUTBOUND PAYMENT
Dividends paid out ofCIT exemption income
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ITC :PERSONAL INCOME TAX FOR EXPATRIATES
on gross income and all benefits derived from employment
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APPLICATION PROCEDURES
www.rd.go.th
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APPLICATION PROCEDURES
IHQ and ITCRules & Regulations
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APPLICATION PROCEDURES
Receive the result from the Director-General of the Revenue Department
Approved Partially approved Not Approved
Track your application process online
Submit the form along with electronic file of business plan to LTO at 11th floor, RD Building
Print out the form and signed by authorized director with company’s seal
Attach XML filesThai associated enterprises of
IHQForeign associated enterprises of
IHQExpats who work in IHQ or ITC
that desire to receive PIT benefit
Register and login to file SorYorKor1 form
Login
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APPLICATION FORM (ส.ญ.ค.1)
Application form requirement
• Company’s profile• Activities to apply• Company’s accounting period• Other information
• Number of pages of business plan• Number of IHQ’s Thai associated enterprises• Number of IHQ’s foreign associated enterprises• Number of expatriates working in IHQ/ITC entitled to PIT benefit
• Signature of authorized director and company’s seal
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RD CONTACTS (IHQ-ITC ISSUES)
Bureau of Tax Policy and Planning +66-2-272-8033
Bureau of Legal Affairs +66-2-272-8390
Bureau of Information Technology +66-2-272-8735,
+66-2-272-8871
Website: www.rd.go.thE-mail: [email protected]
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Thank you