Keywords: Tax, Thailand, ROH, Revenue Department
Royal Decree No. 535 now introduces new concessional rules that will not substantially punish the taxpayer through legislation that previously would have cancelled all tax benefits retrospectively from year 1 (resulting in taxes foregone needed to be paid back along with possible penalties and surcharges).
The new rules apply to the ROH business that fails to comply with any of the following requirements:
- Having operating expenses paid to recipients in Thailand in an amount not less than Baht 15 million for each accounting period (but not including the depletion of assets, operating costs paid abroad, raw material costs, goodwill, copyright or annex rights, accessory expenses, packaging costs) or Capital expenditure in accordance with Section 65 ter (5) of the Revenue Code which is paid to recipients in Thailand in an amount not less than Baht 30 million in each accounting period (but not including any equity investment cost in those companies operating under the Securities and Exchange laws);
- The exemption of corporate income tax on service income received from associated offshore enterprises or branches of an ROH.
- The exemption of corporate income tax on dividend income received from associated enterprises of ROH.