Keywords: Thailand, Tax, Revenue Department, IPC, Personal Income Tax, Corporate Income Tax
Eligibility for the tax incentives requires the IPC to meet qualifications such as:
- a minimum of Baht 10m paid-up registered capital,
- operating expenses paid to Thai recipients of at least Baht 15m, or
- capital expenditure paid to Thai recipients of at least Baht 30m, excluding investments in securities; and
- by the 3rd accounting period, having earned at least Baht 1bn in revenue.
The tax measures include:
Personal Income Tax
Reduced and exempt income tax will be available for up to 3 expatriates who are working for five consecutive accounting periods as high level executives or specialists:
- Personal income tax rate is reduced to 15% where income is from reselling goods and raw materials or parts purchased for associated enterprises in foreign countries.
- Exempt income tax for the expatriate who is assigned to work outside Thailand.
Corporate Income Tax
The tax rate will be reduced to 15% of net profit for five consecutive accounting periods where income is from:
- Goods purchased in foreign countries that are resold to associated enterprises in foreign countries.
Raw materials or parts purchased within or outside Thailand that are resold to associated enterprises in foreign countries for production in foreign countries.