Please find the relevant answers to your questions regarding the relocation of headquarters here.
Thailand Board of Investment
At least one country.
The ten-employee criterion covers both existing and new employees in all positions of skilled workers who are knowledgeable and operate under IBC operations.
The minimum investment requirement of 1 million baht can be categorized into 2 cases as follows:
1) In a case of a newly established company that has never conducted business, the investment can include construction or rental costs for more than 3 years; costs of machinery or rental costs for more than 1 year, machinery testing, and installation; expenses before a full operation, and other asset costs.
2) In a case of an established company that has been operating other businesses, the investment will include costs of construction or rent for more than 3 years, costs of machinery or rental costs for more than 1 year, machinery testing, and installation.
In the context of IBC operations, “machinery” refers to the equipment utilized to service clients and is within the promoted business scope. Consequently, if the company is promoted for business planning or consulting services, the machinery will consist of computers, software, printers, and telephones. If the company provides R&D and training services to its affiliates, the machinery may include equipment used in research and training for employees.
Other asset costs include costs of office furniture and automobiles.
The company is not required to increase its registered capital by 10 million baht if its debt-to-equity ratio in its financial statement does not exceed 3 to 1. If the debt-to-equity ratio exceeds 3 to 1, the company may consider increasing registered capital to meet the calculation conditions of the debt-to-equity ratio for each project.
The company must first apply for a treasury center license from the Bank of Thailand before applying for investment promotion for a treasury center. It is not required for the company to obtain a license on the application submission date for investment promotion, but the company must provide proof of applying for a treasury center license from the Bank of Thailand. Nonetheless, the company must have obtained a treasury center license before the issuance of the BOI investment promotion certificate.
The company will not be eligible to apply for investment promotion under the IBC activity because the primary obligation of the activity is to service its affiliates and group companies before engaging in trading business.
No, it is not necessary. The promoted IBC activity can purchase goods from any company and sell to companies outside the corporate group.
No, this is not allowed. If the company wants to engage in domestic trading, it may only do so through wholesale trading. If the company sells to clients in other countries, it may engage in both retail and wholesale trading.
The Revenue Department
From the border entry and exit information.
Withhold the income tax in accordance with the rate stipulated under the section 50 of the Revenue Code.
The personal income tax benefit will start from the day that expatriate employees start working full-time for IBC. Such expatriate employees must stay in Thailand at least 180 days except for the first and the last tax years that they receive personal income tax benefit.
Only the income received from IBC is eligible for personal income tax rate reduction.
Yes.
If they are IBC’s income, they are eligible for corporate income tax incentive.
If they are income from providing treasury center services to associated enterprises, they are eligible for corporate income tax incentive
If it is income from providing treasury center service to associated enterprises, it is eligible for corporate income tax incentive.
If they are paid to a recipient in Thailand, they can be included in the required expenditures.
No.
If they are paid to a recipient in Thailand, they can be included in the required expenditures.
Allocate based on revenue.
Consider whether an employment contract states that such person is a full-time employee
Yes.
At the time of applying for additional IBC’s activity.
The company should provide complete information when submitting the application.
The approval process for IBC takes no longer than 30 business days. The approval process for changing IBC’s activities takes less time.
Yes.
Yes, but it does not receive corporate income tax incentive.
The research and development must be carried out only in Thailand.
There is no requirement on the minimum number of associated enterprises.
The withholding tax exemption is only applied on the dividends that are paid out of the income derived from providing management services, technical services, supporting services, or financial management services to associated enterprises.
The Department of Business Development
The following person or juristic person is defined as a foreigner:
(1) a natural person not of Thai nationality;
(2) a juristic person not registered in Thailand;
(3) a juristic person registered in Thailand, being of the following descriptions:
(a) being a juristic person at least one half of capital shares of which are held by persons under (1) or (2) or a juristic person in which investment has been placed by the persons under (1) or (2) in the amount at least equivalent to one half of the total capital thereof;
(b) being a limited partnership or a registered ordinary partnership the managing partner or the manager of which is the person under (1);
(4) a juristic person registered in Thailand at least one half of the capital shares of which are held by persons under (1), (2) or (3) or a juristic person in which investment has been placed by the persons under (1), (2) or (3) in the amount at least equivalent to one half of the total capital thereof;
(1) Licence application fee is 2,000 Baht.
(2) Licence for any business in List Three: 5 Baht for every one thousand Baht of registered capital, provided that the minimum fee is 20,000 Baht and the maximum fee is 250,000 Baht.
(3) Certificate application fee is 2,000 Baht.
(4) Certificate fee is 20,000 Baht.
(1) DBD will conclude the application details to the Sub-Committeeand Foreign Business Commission for an approval.
(2) The consideration period for approval of the application must be finished within 60 days. Operating business can be done after obtaining the license. After the Director-General’s approval, the DBD will notify the applicant and issue the license within 15 days.
(3) In case of disapproval, written notification will be sent to an applicant within 15 days and the applicant is entitled to appeal to the Minister of Commerce within 30 days ( no application form is required). It can be written as a letter by submitting to DBD. The appeal consideration period will not exceed 30 days.
(1) Venue for applying for a foreign business licence is at Foreign Business Administration Division, the Department of Business Development, Ministry of Commerce, Nonthaburi, Tel (662) 5474425-26, Fax (662) 5474427-28.
(2) Applying for e-Foreign Certificate is now only in the case of foreigners operate business promoted under Thai Investment Promotion law
The minimum capital to be used by a foreigner for the commencement of the operation of a business (as specified in the Lists annexed of FBA) in Thailand shall not be less than three million Baht.
Bank of Thailand
There is no minimum requirement on the amount of registered capital. However, if the Treasury Center is a foreign business (under the Foreign Business Act, B.E. 2542 (1999)), it must have the debt-to-equity ratio in accordance with the requirement under the related laws and regulations of the Ministry of Commerce
A Treasury Center has to be in the same business network as its conglomerate group. Note : 1) Business Network means a parent company and its affiliated companies. 2) Affiliated Company means a subsidiary or an associated company of a parent company.
The company can submit an application for a Treasury Center license to the Bank of Thailand (BOT) in parallel with the application for investment promotion to the BOI. However, the decision will be finalized by the BOI only after the company has been granted a license to operate a Treasury Center.