Title: Tax measures to support establishments of International Headquarters (IHQ) and International Trading Centers (ITC)
The Cabinet approved the proposal to issue tax measures to support establishments of International Headquarters (IHQ) and International Trading Centers (ITC) made by the Ministry of Finance.
Gist of the resolution
The Ministry of Finance proposed that tax incentives for IHQ and ITC should be provided through two tax measures as follows:
1. Tax measure to support establishments of International Headquarters (IHQ) International Headquarters (IHQ) means a company established under the Thai law to provide management or technical services, supporting services or financial management services to its subsidiaries or branches located either in Thailand or overseas. Its definition also covers an international trading business. The privileges offered include an exemption on corporate income tax and a deduction in corporate income tax rate from 20% to 10%.
2. Tax measure to support establishments of International Trading Centers (ITC) International Trading Centers (ITC) mean a company established under the Thai law to purchase and sell products, raw materials and parts, as well as to provide international-trading services to corporations located overseas. The privileges offered include an exemption on corporate income tax and a deduction in corporate income tax rate from 20% to 10%.
Title: Measure to cut corporate income tax rate for SMEs
The Cabinet approved a measure to cut the corporate income tax rate for small and medium enterprises (SMEs), as well as the Draft Royal Decree Issued under Revenue Code regarding Reduction and Exemption from Revenue Taxes (No. …), B.E. … as proposed by the Ministry of Finance.
Gist of the resolution
Corporate income tax of juristic companies or partnerships with paid-up capital of five million baht and below on the last day of any accounting period and revenue from goods or services of 30 million baht and below in any accounting period, whose net profit ranges from over 1,000,000 baht to no more than 3,000,000 baht, shall be reduced from 20% of the net profit to 15% of the net profit for the accounting period starting on or after January 1, 2015.
The measure would promote and support the strengthening of SMEs which significantly contribute to the country’s economic structure. It would also increase the country’s competitiveness and become an incentive for investments both domestic and overseas, as well as relieve the cost burden and boost SMEs’ liquidity, which is one way to stimulate the economy.
Title: Approval on ratification of GMS Cross-Border Transport Agreement (CBTA) appendixes
The Cabinet granted the following approval on the proposals by the Ministry of Transport:
1. The approval to ratify the appendixes of the GMS Cross-Border Transport Agreement (CBTA) and to propose the following appendixes to the National Legislative Assembly for further consideration on ratification:
1.1 Appendix 1 Transport of Dangerous Goods
1.2 Appendix 4 Cross-border Transport Facilitation
1.3 Appendix 5 Cross-border Movement of People
1.4 Appendix 6 Regulations on Passing through Customs Formalities for Border-crossing Goods and Domestic Border-crossing Goods
1.5 Appendix 8 Temporary Import of Cars
1.6 Appendix 14 Customs Regulations for Containers
Title: Approval on signature to ratify BIMSTEC Convention on Cooperation on Combating International Terrorism, Transnational Organized Crime and Illicit Drug Trafficking
The Cabinet resolved to approve the signature to ratify the BIMSTEC Convention on Cooperation in Combating International Terrorism, Transnational Organized Crime and Illicit Drug Trafficking by the National Security Council (NSC), and assigned the Ministry of Foreign Affairs to handle the ratification under the diplomatic protocol as proposed by the NSC.
The Convention determines that the states parties are obliged to cooperate and support each other in prevention, investigation and suppression of international terrorism, transnational organized crime and illicit drug trafficking.
Title: MOU on academic cooperation between Ireland’s Department of Education and Skills and Thailand’s Ministry of Education
The Cabinet granted the following approval on the proposal by the Ministry of Education:
Approval was granted to the creation and signature of an MOU regarding educational cooperation between Ireland’s Department of Education and Skills and Thailand’s Ministry of Education. Prior to the signature, if any insignificant parts of the MOU require amendment, the Ministry of Education is authorized to discuss with the Department of Treaties and Legal Affairs, Ministry of Foreign Affairs, on the matter without having to pass the Cabinet’s consideration. The Minister of Education is authorized as the signatory of the MOU.
--Cabinet Meeting (Prayut Chan-o-cha) December 23, 2014--