Thailand's deputy finance minister hopes new substantial tax incentives for domestic and foreign companies will boost the country's attractiveness to investment.
Pradit Phataraprasit this week disclosed government plans that will offer tax breaks for companies establishing regional headquarters in the country. The incentives will be applied from June 1.
There will be a zero tax rate on income earned by such headquarters from services provided outside Thailand, while a 10% corporate tax would be applied on earnings made within the country. Both rates will be applied for 15 years.
This is just the latest step taken to boost foreign investment. Released earlier this month, the government issued guidance on how to utilise the country's advance pricing agreement (APA) programme.
So far, APAs have been popular with multinationals operating in Thailand as they can minimise penalties and bring certainty to transfer pricing enforcement.
