ID :
125680
Wed, 06/02/2010 - 20:02
Auther :
Shortlink :
http://m.oananews.org//node/125680
The shortlink copeid
Cabinet approves tax cuts to attract foreign investors
BANGKOK, June 2 (TNA) - The Cabinet on Tuesday approved a Finance Ministry proposal to attract foreign investors to set up regional headquarters here by reducing tax payments and adjusting other conditions, said a senior government official.
Fiscal Policy Office (FPO) director-general Satit Rungkasiri said foreign companies setting up offices in Thailand with incomes from abroad will be granted tax exemptions for 10 years.
If revenues are generated from management in Thailand, tax payments will be reduced to 10 per cent from 30 per cent, while a 30 per cent tax deduction from dividends received from investments will be exempted, and taxes for loans borrowing from a parent company or its
affiliates will be reduced to 10 per cent from originally 30 per cent.
The proposed relaxation also requires participant companies to have registered capital of Bt10 million, to spend at least Bt15 million in their office foundations and management in the country, as well as to invest some Bt30 million in all aspects concerned. Currently, there is no requirement on foreign investment budgets.
Also in this regard, executives, staff and office venues must be present and the objective of each company's business must be notified to the Revenue Department, the new condition which was previously not stated.
Executives and staff with salaries are to pay personal income tax of 15 per cent for eight years, from the existing period of four years.
The government hopes that the changes in the conditions including tax payments will attract more foreign investors to set up their offices in the country, for it believes such the rules are among the most flexible in the South East Asian region.
Currently, around 100 foreign companies have chosen Thailand for their regional operating headquarters. The number is expected to double in the future and the country's revenue will be increased through collection of value added tax (VAT) and of corporate income tax from foreign investments. (TNA)
Fiscal Policy Office (FPO) director-general Satit Rungkasiri said foreign companies setting up offices in Thailand with incomes from abroad will be granted tax exemptions for 10 years.
If revenues are generated from management in Thailand, tax payments will be reduced to 10 per cent from 30 per cent, while a 30 per cent tax deduction from dividends received from investments will be exempted, and taxes for loans borrowing from a parent company or its
affiliates will be reduced to 10 per cent from originally 30 per cent.
The proposed relaxation also requires participant companies to have registered capital of Bt10 million, to spend at least Bt15 million in their office foundations and management in the country, as well as to invest some Bt30 million in all aspects concerned. Currently, there is no requirement on foreign investment budgets.
Also in this regard, executives, staff and office venues must be present and the objective of each company's business must be notified to the Revenue Department, the new condition which was previously not stated.
Executives and staff with salaries are to pay personal income tax of 15 per cent for eight years, from the existing period of four years.
The government hopes that the changes in the conditions including tax payments will attract more foreign investors to set up their offices in the country, for it believes such the rules are among the most flexible in the South East Asian region.
Currently, around 100 foreign companies have chosen Thailand for their regional operating headquarters. The number is expected to double in the future and the country's revenue will be increased through collection of value added tax (VAT) and of corporate income tax from foreign investments. (TNA)
