Thailand Regional Office Tax Structures
A Regional Office in Thailand is the same legal entity as the foreign corporation that forms it (the same as a branch office in Thailand), but its taxation treatment is very different to that of a branch office in Thailand.
A regional office conducts non-revenue-generating activities for its head office only, and provided the activities it conducts are permitted under the rules and regulations of the Thai Ministry of Commerce, it is treated as a tax-exempt entity in Thailand under the rules and regulations of the Thai Revenue Department.
Provided a Regional Office carries out the above activities only on a non-commercial basis with no sales of goods or services transactions being entered into the taxes that a Regional Office is subject to are 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 is a general information Tax Insight Article only. It should not be used to determine any particular matter without consulting with an experienced Thailand tax advisor.