International Trading Center or ITC, in Thailand, is a company incorporated under Thai laws that purchases and sell goods, raw materials and parts or that provides international trading related services to juristic persons incorporated under foreign laws.
ITC related services include:
- Procurement of goods
- Warehousing and inventory services prior to delivery
- Packaging services
- Transportation of goods
- Insurance on goods
- Advisory, technical and training services on goods
- Any other services stipulated by the Director General of the Revenue Department
Rights and benefits:-
Incentives offered by the BOI. Only non-tax incentives shall be granted, which are as follows:
- Permit to bring into the Kingdom skilled workers and experts to work in investment promoted activities.
- Permit to own land.
- Exemption of import duty on machinery
- Exemption of import duty on raw materials and parts used in the production for export
- An ITC must have paid-up capital of at least Baht 10 million.
Incentives offered by the Revenue Department:
A. Corporate Income Tax (CIT). For 15 accounting periods from the date of approval by the Director General of the Revenue Department, an ITC is entitled to corporate income tax exemption on:
- Income derived from the purchase and sales of goods overseas on the condition that such goods must not be imported into Thailand, except for the purpose of transit or transshipment under Thai customs law.
- Income derived from providing international trading related services to juristic persons incorporated under foreign laws on the condition that such income must be received from or in foreign country.
B. Personal Income Tax (PIT). The personal income tax rate for expatriates working in an ITC is reduced to 15% on gross income and benefits derived from employment.
C. Final Tax. Exemption for dividends paid by the ITC (dividends paid from revenue entitled to corporate income tax exemption) to a company or juristic partnership incorporated under foreign laws, and has no operation in Thailand.
- The paid up capital must be at least Baht 10 million on the last day of each accounting period.
- ITC must have total operating expenses which are paid to recipients in Thailand (sales and administration expenses) of at least Baht 15 million per accounting period.
Please note that if the ITC is unable to meet any of the specified conditions within an accounting period, the tax incentives in that accounting period will not be granted.