Regional Operating Headquarters (ROH) and

Treasury Center (TC)Thailand’s policy to promote

regional investment

2

• ROH Tax incentives Non-tax

incentives

• Treasury Center General

Regulation Tax system

relating TC

Policy Measures to promote ROH & TC

3

Country BenchmarkingTax Incentives

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Launched 2002 1986 1995

Income from qualified Services -Business-Royalties-Interest

10%, unlimited period

RHQ: 15%, 3(+2) years

IHQ: 0, 5 or 10%, 5-20 years

Exempted, 10 years

RHQ: Regional Headquarters IHQ: International HeadquartersOHQ: Operational Headquarter Company

4

Country BenchmarkingTax Incentives

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Dividends Exemption Exemption Exemption

Depreciation Allowance

Accelerated ratio

None None

5

Country BenchmarkingTax Incentives

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Expat ROH employees • income

from overseas work• Other

income from ROH

Exempt, 4 years

15%, 4 years

10%, 5 years

20% (normal rate)

Requires additional approval from MIDA

Exempt, 3-5

25% (normal rate)

6

Country ExperiencesCriteria

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Minimum paid up capital requirement

Minimum business spending requirement

7

Country BenchmarkingCriteria

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Employment and remuneration

8

Country BenchmarkingCriteria

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Minimum related companies requirement

9

Country BenchmarkingCriteria

Thailand (ROH)

Singapore (RHQ/IHQ)

Malaysia (OHQ)

Qualified services

Require minimum of 3 qualifying services

ROH Policy Challenge

Tax IncentivesTax Incentives

CriteriaCriteria

ROHROH

ROHROH

Present

Future

Singapore/Malaysia

Thailand

11

Tax system relating TC

• Exempted Specific business tax (SBT)

on interest generated by lending to associated companies (>25%)

• Reduced SBT rate to 0.01% on treasury portfolio transaction

• Import duty compensation

Ministry of Finance of Thailand