Outrigger First Phuket Based HQ Under New Thailand Incentive

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Posted: 30 Jun 2010 | 2:18 pm

The US based hotel chain Outrigger Hotels and Resorts Asia have become the first Phuket operating business to win approval from Thailand's Board of Investment (BOI).

In a ceremony held today Provincial Governor Wichai Praisa-ngob gave the certification to Outrigger Senior Vice President, Asia Darren Edmonstone.

While there are now more than 80 companies in Thailand who have obtained ROH (Regional Operating Headquarters) status, this is a first for an island based company.

Despite the global financial crises the Hawaii borne chain have chosen Phuket as a base to expand into the world's fastest growing hotel market - Asia and most importantly showed long term confidence in Thailand.

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Hi Bill,

For those of us not in the know, what does this actually mean? In other words, what qualifies a company for certification and what perks (if any) does approval from BOI provide?

Matt
Bill Barnett responds:
Good question, the crux of it is as follows:

A new incentive has been rolled out by the Thai Finance Ministry for international companies who wish to use the country as a regional headquarters.

Under the new plan a tax waiver will be offered for 15 years which expanded on the current program.

Under the tax regime a zero tax would be applicable for money earned outside of the country, while onshore taxation rates of 10% for the term.

Expatriates working for these firms also look to benefit with reduced income tax of 15% for the initial eight years.

There are a number of precursors for the incentive including proportion of revenue earnings from outside Thailand and certain approved industry.

Expectations are keen for further BoI (Board of Investment) incentives to come out in the coming months. For many foreign land ownership remains a pressure point and remains a key point of discussion between the private and public sector.

More details of the program at the Board of Investment (BoI) website which is fairly comprehensive and has a good English version.

Matt, 30 Jun 2010 | 5:16 pm