International Business Centre replaces IHQ and ITC
The Board of Investment (BOI) has cancelled investment incentives for International Headquarters (IHQ) and International Trading Centres (ITC), and is no longer accepting applications for IHQ and ITC. IHQs and ITCs that are already receiving incentives will continue to do so until those incentives expire.
Keywords: Mazars, Thailand, Legal, IBC, IHQ, ITC, BOI
11 January 2019
The BOI approved a new investment incentives plan for IBCs which was issued on 11 December 2018 and which set out the following conditions and incentives:
Conditions | Must provide the following services to associated enterprises: 1.1 General management, business planning, and business coordination 1.2 Sourcing of raw materials and parts 1.3 Research and development of products 1.4 Technical support 1.5 Marketing and sales promotion 1.6 Human resource management and training services 1.7 Advisory services in finance (except loan services) 1.8 Economic and investment analysis and research services 1.9 Credit management and control offered services 1.10 Treasury centre services 1.11 International trading 1.12 Any other supporting services specified by the Revenue Department The IBC services in 1.1 through 1.10 must be provided to associated enterprises only. For the IBC providing international trading services, it must perform at least one of the business activities listed in 1.1 through 1.10 above. Must have paid-up registered capital of at least THB 10 million. Must have at least 10 employees who have the relevant knowledge and skills for the IBC. The IBC functioning as a treasury centre must have at least 5 employees. |
Incentives | - Exemption from import duty on machinery only for R&D and training activities. - No exemption from import duty for raw materials or essential materials imported for use in production for export. - No merit-based incentives. - Visas and work permits for expatriate employees will be issued for a maximum of 4 years. - Granting land ownership rights |
Shareholding structure | Shareholding structure can be a foreign-majority-owned company in Thailand. |
For more information, please read the announcement of the BOI No Nqor 1/2561, the announcement of the BOI No Sor 6/2561, and the announcement of the BOI No Sor 6/2561 (in Japanese).
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