A few weeks ago, the Thai cabinet approved certain tax privileges on International Procurement Center as follows.
1. IPC’s Corporate income tax is reduced to 15% (on taxable profits) for 5 consecutive accounting periods from the following revenues.
a. Revenue from purchase and sale of goods to overseas affiliates and such goods is not imported to Thailand
b. Revenue from sale of raw materials and parts to overseas affiliates’ manufacturing plants
2. Personal income tax for expatriates (maximum 3 persons) in management levels is reduced to 15% for 5 consecutive years. In order for an IPC to be qualified under this privilege, it must have a qualified revenue of at least 50% of the total of qualified revenue and revenue from sale of raw materials and parts to affiliates for manufacturing in Thailand.
This tax privilege is granted for the purpose of promoting an investment in manufacturing business and promoting Thailand as a center of both manufacturing business (under IPC scheme) and service business (under Regional Operating Headquarters scheme).
If you have any questions about Thailand taxation, please contact MSNA, an English Speaking Thai Accounting firm servicing SME’s in Bangkok Thailand.