The Big Thailand Relocation Package
Profiteering from the US-China trade dispute in the land of smile
Thailand offers a “relocation package” to attract foreign companies to relocate from their current manufacturing location to the land of smile. This targets mainly investors from China, Japan, South Korea, Taiwan, and the USA, but might be applicable to investors from other jurisdictions as well. Obvious target will be to circumvent escalating punitive U.S. tariffs on Chinese goods. These are the characteristics of the relocation package:
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All agencies: The official statement “It will be a package involving all agencies in order to facilitate companies production relocation.” indicates tax holidays and other tax advantages, the possibility for 100% foreign ownership, facilitation of visa and work permit, land ownership rights, release from customs duties, and an enhanced promotion by Thailand’s Board of Investment.
EEC: The benefits under the Thailand Relocation Package (TLP) can be combined with the EEC benefits to maximize the attractiveness of the relocation to Thailand.
Country packages: As already announced by the Thai government, promotional packages will be specially tailored to suit the specific needs of investors from different countries, dealing with investors’ priorities in terms of promotional privileges. This country approach might not result in an equal playing field and requires a smart structuring of the investment to obtain access to the most favorable package.
Special compensation: The customized promotion package to compensate for investor’s losses from the trade dispute. Details on this approach are unknown yet.
SME: Although production typically requires a significant investment, the scheme will also provide stimulus packages for SMEs.
Timeline: Beginning of September 2019, the Industry Ministry has ordered the Office of Industrial Economics to finish crafting incentive packages within two weeks to persuade foreign investors to relocate from China into Thailand.
As of today, the details remain undisclosed and are probably even undecided. This website will be updated to constantly reflect the latest insights and information. Stay tuned!
Assign PUGNATORIUS GROUP to obtain the whole scope of benefits
Professional services to utilize Thailand’s governmental relocation package
PUGNATORIUS Ltd. is the Bangkok-based specialist provider of transactional legal and tax advice on foreign investments in Thailand’s manufacturing and service industries as well as property transactions and developments. The law firm supports the
- Corporate, tax and financial structuring of foreign direct investments in Thailand
- Advice on the legal framework under the Thailand relocation package.
- Formation of Thai companies
- Investment promotion under Thailand’s Board of Investment
- Application for relocation package benefits
- Commercial contracts
- Business visa, work permits, and other supporting tasks
Details and a comprehensive professional offer are available on request.