Thailand Regional Office Tax for Foreign Corporations
A Regional Office for foreign corporations is established under the rules, procedures and conditions of the Office of the Prime Minister for carrying on regional office activities for a multinational or international corporation.
The legal status of these Regional Offices is the same as the multinational or international corporation, i.e. it's a branch of the multinational or international corporation. But whilst a branch office is subject to tax in Thailand as a profit-seeking entity, these Regional Offices are afforded treatment as non-profit-seeking entities in Thailand (provided of course, the rules, procedures and conditions are complied with).
The following Regional Office activities for a multinational or international corporation, but on a non-commercial basis:
Thailand Tax Treatment
Provided a Regional Office carries out the permitted activities only on a non-commercial basis without any commercial services transactions being entered into, the tax treatment is as follows:
If a Regional Office does not maintain compliance with all of the rules and regulations for the activities of regional offices in Thailand, tax audit officers will subject it to all the usual taxes for corporate entities in Thailand plus penalty and surcharge.
This Tax Insight is general information only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.