Tax Exemption for New Investors

[PeteC]

It appears they're beginning to feel they need us? Pete

Business » Economics
Huge tax exemption for new investors

http://www.bangkokpost.com/business/eco ... -investors

* Published: 24/05/2010 at 12:55 PM
* Online news: Economics

Foreign firms that set up their offices in Thailand will not have to pay corporate income taxes for 15 years, Deputy Finance Minister Pradit Phattaraprasit said on Monday.

"This measure is aimed at attracting more foreign investors to Thailand," Mr Pradit said. "The exemption will begin on June 1, 2010."

Foreign firms that have offices in Thailand will need to pay corporate income taxes at only 10 per cent of net profit inside the country.

Expatriates who work at the regional operating headquarters (ROH) in Thailand are required to pay personal income tax at the rate of 15 per cent for eight years, starting June 1.

[rikkitikki]

Wow, that is quite a perk. Now if they can just loosen the reigns on property ownership we might see some cash flowing across the borders. It reminds me of when I lived in Kuwait. They baited several USA chain restaurants to build branches in Kuwait city with the promise that they could serve alcohol. That promise never saw the light of day and you can imagine how strange it is to see a dozen people around the TGIF bar on a friday night sipping on fruit shakes. lol.

[PeteC]

They should also get rid of their ridiculous excise and engine size tax on imported cars as well. It won't in any way increase the amount of cars on the roads, but it will enable us 'normal people' to start to be able to afford a good European ride for a change and break the 'nose in the air high status...only we can afford these..' the super rich flaunts here. Pete

[PeteC]

Thinking about this more, it's pretty obvious why they're doing it now. Further to what Riktik mentioned about property, we could actually see a loosening of many regulations concerning immigration and other things dear to our hearts here.

If they're desperately wanting to regain their image, anything could be on the table in coming months. Will be interesting to see what and if? Pete

[buksida]

I like the optimism but can't see it myself. These exemptions and incentives are for multinationals such as Toyota, IBM and the big gas companies in the south who actually expatriate foreigners and invest millions. They wan't them back as they do the two-week-tourists, hence the visa waiver.

The majority of us on the board are non-immigrant status and the bottom of the pile. We've had tsunamis, SARS, H1N1, airport hijackings, plane crashes, riots, terrorism in the south, financial meltdown and now red shirts. Not a thing since the Chuan Leekpai govt of the late 90s has been done to ease the lives of the average joe farang who wants to live here, support his/her family, work, and gain a few civil rights that are commonplace elsewhere.

If anything I see more hoops and bureaucracy coming, we are only here because we satisfy their minimum financial requirements, its quite possible that they may well increase soon to make up for the lack of tourists. We've all seen the common Thai practice of increasing the prices when there are fewer customers.

[Spitfire]

Hmmm......yes, wouldn't get too excited, be lucky if they get rid of the 150 baht (over 3 pounds now or almost $5) ATM charges which the government has said it doesn't like. As Pete mentioned, slicing some import tax of decent foreign goods would be nice so it's affordable to buy decent stuff instead of some of the cheap garbage on offer here. Again, some chance, even when ASEAN apparently agreed to a free trade area that was "supposed" to start on Jan 1st 2010, still nothing, no cheaper Beer Lao etc.

As Mr B says, it'll be the multinationals that benefit. If you opened a small business for you and the wife using foreign money, doubt you'd get any concessions, be funny to find out.

[STEVE G]

Yes, it does say it's for foreign companies opening offices in Thailand as opposed to foreigners starting businesses there.
I imagine there will be some mimimum amount of capital required otherwise you'd be able to incorporate a company offshore and then set up your regional office in a bar in Bintabaht!

[Roel]

mmmmmmm.......nothing really new in this thread. Let's all keep dreaming how it could be and how it should be but probably never will be.

[Super Joe]

Agree it won't benefit us much down in Hua Hin, but the amount of foreign investment it could bring in is not to be under-estimated. There are already approx. 800 odd foreigners working here for ROH companies that could benefit from it, let alone any new one's.

It's part of an existing ROH programme started years back, similarly the BOI program also gives tax incentives to foreigners working here, 2008 saw 4,000 foreign workers entitled to tax benefits and 350 Billion Baht of foreign investment. As they said it's about bringing in foreign investment and expats who then spend/invest here, which both Thai and foreign businesses and Thais throughout the country benefit from.

In 2008 when these BOI companies employed 4,000 expats they also employed 150,000 local Thais, so no, it's not about our ATM charges and two extra forms for our annual extensions

SJ