Thailand Regional Operating Headquarters (ROH) Tax Structures
Update | June 2006
On 22 June 2006, Royal Decree (No 461) was issued, amending the period of time from 2 years to 4 years for the 15% withholding tax concession on salary payments to employees of an ROH. This Insight has been updated for this amendment.
In August 2002, the Government introduced tax concessions to encourage multinational and international corporations to establish a Regional Operating Headquarters (ROH) structure in Thailand. This Tax Insight summarizes the laws in Royal Decree (No 405) issued on 5 August 2002, and applying from 16 August 2002.
An ROH is a company incorporated in Thailand for the purpose of carrying on a business of providing support services to affiliates in Thailand and foreign countries.
Support services is defined to include:
The Tax Concessions
The tax concessions granted under the Royal Decree (No 405) law are as follows:
* As amended by Royal Decree (No 461) issued on 22 June 2006.
An ROH company claiming the tax concessions under Royal Decree (No 405) shall:
As a foreign company claiming tax concessions in Thailand an ROH company is rigorously investigated by the Revenue Department’s LTO (Large Taxpayers Office). If the LTO audit officers find that an ROH has not fully complied with each and every one of the prescribed rules, procedures and conditions, the ROH will lose its entitlements to the tax concessions and will be required to pay back-taxes at normal rates of tax plus penalties 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.