Huge sales pitch
ready for big firms
firms invited to review incentives by
than 1,000 multinational companies will be invited to a conference
next month on incentives offered for firms ,establishing regional
operating headquarters in Thailand.
The incentives announced recently by the Revenue Department include a
corporate tax reduction to 10% from the current 30%. Expatriate
workers would pay a flat rate of 10% for personal income taxes for two
years, compared with the existing 5-37% scale.
The conference also aimed at briefing foreign firms about other
positive gains from establishing new operations or expanding existing
ones in Thailand, said Satit Rungkasiri, a department spokesman.
The government has become more aggressive in recent months in reaching
out to foreign investors. with policies
aimed at presenting Thailand as a politically stable, safe and
business-friendly gateway to Asean.
Officials say the incentives would help generate new revenues by
attracting increased trade and investment flows. "We can compete
with every other country in the region in terms of tax incentives,
whether itís Singapore or Malaysia." Mr Satit said.
The department planned to focus on top multinationals with operations
in the region to invite to the conference. Tax officials have even
been assigned to browse corporate web sites to seek promising
candidates. Foreign chambers of commerce have also been asked to help
publicize the program.
The program also waives taxes on dividends paid to headquarters by
domestic and foreign subsidiaries, as well as dividend taxes paid by
the headquarters itself to its overseas parent.
To qualify, headquarters must have paid-up capital of 10 million baht
and offer services to subsidiaries or branches in at least three other
countries. Firms can be Thai- or foreign- owned.
At least half the revenue booked by the headquarters must be derived
from overseas operations, although this requirement will be reduced to
one third for the first three years.
Bangkok Post, February 8, 2002
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