One Start One Stop Investment Center (OSOS)

FAQ - IHQ and ITC

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If a company wishes to purchase and sell goods, does the company have to apply for the investment promotion under both IHQ and ITC?

No, the company must apply for investment promotion under ITC only.

Can a company which has currently been promoted under IPO change to ITC? What is the condition required for such an amendment?

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.

For an ITC project, can a company outsource to another party in the processing of goods?

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.

If a company wishes to apply for investment promotion under IHQ and ITC, is the condition of a debt/equity ratio of 3:1 applicable and in force?

The 3:1 debt/equity ratio condition is in force in all cases, as it is an initial criterion in approving projects.

Does the change in the activity type from IPO to ITC or from ROH to IHQ result in a change in the ROH condition of 3 countries to 1 country?

Yes, by changing from being promoted under ROH to IHQ, the ROH condition of 3 countries will also be changed to 1 country.

If a company has already been promoted under IPO and has commenced its full operations, can the company amend the project to ITC, or must the company resubmit the investment promotion application for ITC?

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.

If an established company is registered in Thailand with a registered capital of 4 million baht, but wishes to apply for IHQ, does the company need to increase its capital to 10 million baht prior to applying for the investment promotion?

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.

For an IHQ project that provides treasury center services, does the company need permission from other agencies such as the Bank of Thailand, etc.?

Yes, projects that provide treasury center services must obtain permission from the Bank of Thailand.

Does an IHQ project include an ITC activity and if so, how?

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.

In the event a project has been changed to an ITC, does the max stock which has previously been approved need to be transferred to the new promotion certificate? Or, is the project allowed to continue to exercise the same rights?

The project is allowed to continue to exercise the same rights, as the new promotion certificate number remains the same.

At present, a company has currently been promoted under IPO and has submitted the amendment form in order to change to ITC. How long will the amendment process take? Does the company have to have the IPO stock cleared first?

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.

A company currently has tax privileges under ROH but wishes to apply to change the type of the activity to IHQ. Does the company have to submit the application for a new project, or can the company submit only the project amendment form?

The company only needs to submit the Project Amendment Form (F PA PC 01-03).

In order to exercise corporate income tax privileges, does the company have to file the application for tax privileges to the BOI before filing the application to the Revenue Department, or does the company file the application in parallel to both agencies?

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.

If a company wishes to change the type of activity from IPO to IHQ, does the company have to give up its existing rights and privileges?

The company is not allowed to change from IPO to IHQ.

The company must apply for an investment application under a new promotion certificate.

FAQ - IHQ and ITC

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