The Thai Government has reduced corporate income tax from 23% in 2012 to 20% in 2013.

Cabinet approved the proposed tax incentives for Regional Operating Headquarters (ROH) to set up in Thailand. Key changes include:

• A 15 year corporate income tax exemption on new profits derived from offshore income, with new profits from onshore income taxed at a rate of 10%;

• Criteria that minimum revenue be at least 50% of total revenue will be waived. ROHs currently are subject to 10% income tax on net profits derived from all income provided the gross amount of offshore income is at least 50% of total income reported by the ROH;

• Reduced personal income tax of 15% to expatriates employed by an ROH for up to eight years (currently four years)

New measures have been introduced aimed at promoting outward investment by relaxing approval requirements on foreign exchange regulations in relation to such activities.