Are you wondering what a regional operational headquarter (ROH) is? Most of the people are not aware what a regional operational headquarter is. We have outlined everything you need to know about ROH.
ROH is a kind of company registered at the Department of Business Development. It is promoted by the Board of Investment (BOI). The company must fulfill with below-mentioned conditions:
- At the end of each fiscal year, ROH must not be below 10M THB.
- The foreign associated companies must have a business operation in Thailand, They should have a management and working employees.
- Offer services to related enterprises overseas:
- To 1 country, in the 1st and 2nd fiscal year.
- To 2 countries, in the 3rd and 4th fiscal year.
- To 3 countries, in the 5th fiscal year and forwards.
- The Department of Revenue must be notified about the ROH’s incorporation within 5 years.
- Have average remuneration of minimum 2.5M THB for 5 employees until the end of the 3rd fiscal year.
- By the end of the 3rd fiscal year, the skilled staff must consist of 75% of the total worker.
- They should have:
- The total spending of the business must be of 15M THB every year.
- The total investment spending must be of 30M THB paid in Thailand each year.
Benefits of ROH
The benefits of ROH are double sided, they are:
- The Business can get:
- CIT exception on net profits for income derived from services provided to ROH’s foreign branches or associated enterprises for 10 years.
- 10% CIT net profits for qualified royalties for 10 years.
- CIT exception of the dividends received by the ROH from related companies for 10 years.
- 10% CIT net profits for income obtained from the services provided to ROH’s local branches and linked companies for 10 years.
- 10% CIT on interest received from ROH’s overseas branches and linked enterprises for a loan granted. These loans must be made from other sources and extended to ROH’s branches for 10 years.
- CIT exemption in Thailand for the dividend paid out of the ROH’s concessionary profits. It is paid to its juristic shareholders incorporated abroad and not carrying business in Thailand for 10 years.
- The immigrant employee has:
- Right to select to be subject to a tax rate of 15% on remunerations that is obtained from the ROH for 8 years.
- Tax exception to their income paid by the foreign company for services provided abroad. This income is not subtracted directly or indirectly as an expense of ROH or linked companies in Thailand.
Moreover, the company can apply for the ROH privilege extension for 5 more fiscal years. The company has to meet the criteria mentioned above for every fiscal year. The business spending must be over 150M THB by the 10th fiscal year.
We at Sunbelt Asia Legal Advisors have experience for 15 years in the legal field. All our experts are happy to help you and guide you through the process. If you have any query or need to discuss anything with our consultants, you can contact on 02-642- 0214.
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