FAQ - IHQ and ITC
No, the company must apply for investment promotion under ITC only.
Yes, a company can change the type of promoted activity by completing the Project Amendment Form (F PA PC 01-03) and submitting this to the Investment Promotion Bureau 4.
A company can outsource the processing of goods to another company, by hiring only one company to process only the parts that are not finished goods. Goods can be processed in more than one stage.
The 3:1 debt/equity ratio condition is in force in all cases, as it is an initial criterion in approving projects.
Yes, by changing from being promoted under ROH to IHQ, the ROH condition of 3 countries will also be changed to 1 country.
The company can amend the project activity to ITC by submitting the Project Amendment Form (F PA PC 01-03).
If a company has a promotion certificate under ROH in providing supporting services, but wishes to apply for the investment promotion under IHQ in TC and procurement and provide supporting services, does the company have to apply for IHQ as a new project? Does the company have to separate the account of each project?
The company can submit the Project Amendment Form (F PA PC 01-03) to add business activities, but must apply for a TC license from the Bank of Thailand.
Yes, the company must increase its capital to 10 million baht because the conditions stipulated for IHQ require a company to have paid-up capital of at least 10 million baht.
Yes, projects that provide treasury center services must obtain permission from the Bank of Thailand.
An International Headquarters (IHQ) provides the following activities (which are not included as ITC activities):
- General management
- Procurement of raw materials and parts
- Research and development of products
- Technical support
- Marketing and sales promotion
- Human resource management and training
- Business advisory services e.g. finance, marketing, accounting system, etc.
- Economic and investment analysis and research
- Treasury centers
At present, a company has a registered capital of 107 million baht for BOI-promoted projects and foreign businesses. If the company wishes to apply for investment promotion under ITC, does the company have to invest an additional 10 million baht? Does the company also have to purchase more assets for the investment? If so, how much?
Increasing or not increasing the registered capital must be considered from the standpoint of the debt/equity ratio which must not exceed 3:1, and projects must have a minimum investment of at least 1 million baht.
At present, a company has currently been promoted under IPO and has been exercising tax privileges in exempting import duties on raw materials and parts. If the company wishes to change the type of activity to ITC, will the tax privileges in exempting import duties on raw materials and parts be discontinued until the company receives a new promotion certificate, or is the company allowed to continue to exercise its tax exemption during this period until the company receives the approval?
The company is allowed to continue to exercise tax exemption privileges as this is an amendment case.
The project is allowed to continue to exercise the same rights, as the new promotion certificate number remains the same.
The amendment process will talk no longer than 30 working days. The company can continue to use the existing stock.
A company has currently been promoted under IPO, but has not received an approval to commence operations in accordance with the conditions stipulated in the promotion certificate within three years after the issuance of the promotion certificate. Can the company submit the project amendment form in order to change to ITC?
If the commencement period for operations is imminent; the company must first apply to commence operations, and then submit the project amendment form at a later date. If there is a sufficient period time to commence operations, the company is free to submit the project amendment form at any time.
The company only needs to submit the Project Amendment Form (F PA PC 01-03).
The BOI offers non-tax incentives. If a company wishes to exercise income tax exemption rights and privileges, the company must file the application directly with the Revenue Department.
The company is not allowed to change from IPO to IHQ.