Set Up Business in Thailand and Embrace Its Rich Culture
For manufacturing companies especially, the best option is certainly to set up business in Thailand, thanks to the skilled yet affordable workforce, generous tax incentives, the country’s ASEAN membership and a vast network of suppliers and corporate customers.
It’s feasible to set up business in Thailand, as it is the 22nd most attractive consumer market in the world. This is according to the renowned World Economic Forum, Further, here are other reasons why investors are keen on doing so:
Foreign Investments Made Easy
Foreign investments in several sectors are available for international investors to leverage on, and these sectors include electronic, chemical, paper, plastics and metal products. All these sectors will benefit from a corporation tax holiday of up to eight years, exemption from import duties on machinery and raw materials, and even simplified customs procedures and permission to own land.
Transporting Goods Is Easy
Conducting business in Thailand through rail, air, land and sea is a breeze, since Thailand’s transportation network is considered the 4th best in South East Asia.
Free Trade Zones Have an Advantage
Companies which are incorporated within any of Thailand’s 12 free trade zones will enjoy several advantages. These advantages include VAT exemption, no import and export duties imposed, and up to eight years of tax holiday for promoted activities. They may even own land upon getting permission from the government.
Regional Headquarters Benefits
Enjoy only 10% of corporate tax when you set up business in Thailand. The government levies on any income received from subsidiaries, which include royalties, interest and intellectual property and management fees. Dividends which are received from international subsidiaries are also free from Thailand’s corporate income tax.
Regional Operating Headquarters set up in Thailand can own land in the country and will be free from any currency controls and overseas remittance restrictions. These companies will also be free to employ as much expatriate talent as they need.
Tax Incentives Provided by the Government
The government of Thailand wants to attractive foreign investors into the country for the good of the economy. This is why they have introduced attractive tax incentives for the benefit of these international investors. Among the benefits that international investors can look forward to include corporate tax holidays which can be granted by the Thailand Board of Investment to companies that are investing in the designated industries. Designated industries here refer to the following industries:
- agro-industry
- alternative energy
- automotive
- electronics
- ICT
- entertainment
- fashion
- healthcare
- tourism
Companies will also be able to claim as much as a 200% rebate on any research and development costs incurred during their business operations. Also, they may claim a 200% deduction for job training expenses. These include expenditure on salaries paid to disabled employees.
All businesses operating in Thailand will be able to carry forward their losses for up to 5 years if needed.
