1.1 General business management, business planning, and business cooperation

1.2 Procurement of raw materials and parts

1.3 Research and development of products

1.4 Technical support

1.5 Marketing and sale promotion

1.6 Human resources management and training

1.7 Financial advisory services

1.8 Economic and investment analysis and research

1.9 Credit management and control

1.10 Financial management services of the Treasury Center

1.11 International trade business

1.12 Lending to associated enterprises outside the scope of business in Item 1.10 which can be implemented under the exchange control laws, for example:

- Lending of foreign currency loans to associated enterprises in foreign countries

- Lending of Thai baht loans to associated enterprises in Thailand

- Lending of Thai baht loans to associated enterprises in Vietnam and countries bordering Thailand with a requirement of using them for trading and investment in Thailand or in aforementioned countries only

1.13 Other supporting services as approved by the Board

Examples or details of each scope of activity, click: International Business Center (IBC)

The promotion for International Trading Center (ITC) has already been repealed. For IBC, it is like the promotion given to International Headquarters (IHQ) to become IBC. If IBC operates, the mandatory condition specifies that there must be an action plan to provide services for affiliated enterprises, then it can be promoted to operate international trade business.

If the company will expand the business to international trade by importing semi-finished goods for commercial distribution in Thailand, the company must apply for license from Foreign Business Administration Division, Department of Business Development, Ministry of Commerce, or increase fully paid-up registered capital of one hundred million baht to operate wholesale business. If the company wants to operate retail business, the company must apply for license from Foreign Business Administration Division or increase fully paid-up registered capital of one hundred million baht more.

The company must apply for permission from Bank of Thailand to operate TC (Treasury Center), and then submit the application for investment promotion under IBC for the scope of “TC (Treasury Center)”. If tax incentives are required, the company must submit for approval the request for being IBC to the Revenue Department.

"Affiliated enterprise" means the company or corporate partnership having relationship with the International Business Center in the following aspects.

(1) The company or corporate partnership which holds the shares of the International Business Center both directly and indirectly. The shares account for the shareholding proportion of not less than twenty-five percent of total capital.

(2) The company or corporate partnership which the International Business Center holds its shares or is its both direct and indirect partner. The shares account for the shareholding proportion of not less than twenty-five percent of total capital.

(3) The company or corporate partnership which the company or corporate partnership as described in Item (1) holds its shares or is its both direct and indirect partner. The shares account for the shareholding proportion of not less than twenty-five percent of total capital.

(4) The company or corporate partnership which has the power to control the business or supervise the operation and administration of the International Business Center.

(5) The company or corporate partnership which the International Business Center has the power to control its business or supervise its operation and administration.

(6) The company or corporate partnership which the company or corporate partnership as described in Item (4) has the power to control its business or supervise its operation and administration.

The international trade business under the business category 7.34 IBC currently has the conditions and incentives different from the former business category 7.6 ITC with specific conditions for the category as follows:

1. The paid-up registered capital must not be less than 10 million baht (as before).

2. Not less than 10 permanent staffs with necessary knowledge and skills for IBC must be employed. Except that IBC provides only financial management service of the treasury center for affiliated enterprises, not less than 5 permanent staffs with knowledge and skills must be employed.

3. In case of international trade business operation, not less than 1 scope of activities in 1.1 – 1.10 must be involved.

4. Not entitled to exemption from import duty of machinery (Section 28) and import duty of raw materials and essential materials used in the production for export (Section 36).

The conditions and incentives have been changed, including increased personnel employment, increased scope of services provided for affiliated enterprises, and repealed incentives for exemption from import duty of machinery (Section 28) and import duty of raw materials (Section 36).

BOI has guidelines on consideration that if the company wants to operate the international trade business under the category 7.34 IBC, the business operation must significantly involve the scope of activities in 1.1 – 1.10 under the category of IBC.

Under the category 7.34 IBC, the services under the scope of activities in 1.1 – 1.10 must be provided for affiliated enterprises at least in 1 foreign country, and can be provided to affiliated enterprises in the country as well.

The educational background, position and job description of the permanent staffs working in IBC project will be examined initially and every time when the incentives are exercised.

IBC is provided with the incentives for exemption from import duty of machinery that is used only for research, development and training, but not provided with the incentives for exemption from import duty of raw materials.

The company can submit the application to BOI on the link:  https://www.boi.go.th/index.php?page=form_app1

The company can change the business to IBC on condition that the company must comply with the conditions of IBC.

The company should submit additional application for IBC promotion because in case of the change of business category from ITC to IBC, the company will not be provided with the incentives for exemption from import duty of machinery (Section 28) and of raw materials for exportation (Section 36).

The Revenue Department has terminated the approval for IHQ or ITC, and announced the promotion for IBC with more strict conditions. If the company wants to apply for tax incentives to the Revenue Department, the company must change the investment promotion for IHQ to IBC instead.

It depends on the company’s policy. If the company remains operating IHQ business, the current rights and benefits of tax can be used further until the specified period (15 fiscal years).

It depends on the company’s policy. If the company wants to apply for tax incentives, the company must submit the application for IBC to the Revenue Department for approval, and must comply with the conditions of IBC.

There is no change.

The company can submit the application for investment promotion for IBC to expand the aforementioned business without any need to establish a new company.

Source: The investment promotion for the business of International Headquarters (IHQ) and International Trading Center (ITC) has been repealed. IBC can be compared as the promotion given to International Headquarters (IHQ) to become IBC. Therefore, the condition is that there must be an action plan to provide services for affiliated enterprises and promote the international trade business operation if the business is mainly to provide services for affiliated companies (IHQ).

(1) Conditions:

- Not less than 10 permanent staffs with necessary knowledge and skills for IBC must be employed. Except that IBC provides only financial management service of the treasury center for affiliated enterprises, not less than 5 permanent staffs with knowledge and skills must be employed.

- In case of international trade business operation under the category 7.34 IBC, not less than 1 scope of activities in 1.1 – 1.10 of IBC must be involved.

(2) Incentives: The incentives of BOI for exemption from import duty of machinery and raw materials are not provided, but import tax refunds can be requested from the Customs Department.

If the promotion for the business category “IHQ” and “ITC” covers the project’s business operation, then there will be no need to apply for investment promotion for “IBC”. But if the company wants to change the business to IBC, the company must comply with the conditions of IBC.

The aforementioned out-out commercial distribution is in the scope of activities of ITC for which the company has been promoted. At present, after the Ministry of Finance adjusts the policy to give investment promotion for IBC and terminates the approval for IHQ or ITC, the company is not eligible for such income tax incentives from the Revenue Department, Ministry of Finance. As a result, the company has to pay for corporate income tax normally.