In compliance with the obligations to implement OECD/BEPS reforms, Thailand’s Cabinet has just announced the complete cancellation of all tax benefits granted under three longstanding and significant BOI incentive programs: Regional Headquarters (ROHs), International Headquarters (IHQs), and International Trade Centers (ITCs).
Background: All foreigners who desire to work in Thailand must hold a valid work permit to authorize their employment by a named employer, to carry out specified duties. This is except for accredited diplomats, and those employed by the United Nations and associated agencies.
Thailand’s e-commerce market has grown significantly in recent years to become the second largest business-to-consumer e-commerce market in South East Asia, creating strong opportunities for Australian business.
On 10 October 2018, the Thai government announced the cessation of the International Headquarters (“IHQs”) program (which also included Regional Operating Headquarters or “ROHs” and International Trading Centers or “ITCs”) and the creation of a replacement initiative; International Business Centers (“IBCs”).
Around 7,300 rooms at 19 local hotels booked by Chinese tourists have been cancelled, causing over seven million baht in losses, following the Phoenix tour boat tragedy which claimed 47 of their compatriots’ lives early this month.