CIT Reductions and Exemptions for IPC

Following on from last month, Revenue Department Notification No.198 has been issued in order to specify the criteria for corporate income tax reductions and exemptions for an
International Procurement Center (‘IPC’) in accordance with Royal Decree No.518.

Keywords: Thailand, Tax, Revenue Department, IPC, Personal Income Tax, Corporate Income Tax

The significant criteria are as follows:

  • The net profit or loss from the activities as an IPC need to be computed separately from other business activities. In case of expense that cannot be specified to business activity, the allocation of expense should be based on the revenues of each business activity.
  • In case the IPC records a net loss, such loss cannot be offset against the profits derived from other business activities.
  • An entity operating as an IPC is required to file an additional form attached to the corporate income tax return. This should be accompanied by a supporting income statement although a consolidated balance sheet of all business activities is sufficient.

The employees of an IPC are required to meet certain professional skill and educational standards.

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