Investment Incentives

Do tax incentives under the Statute for Industrial Innovation (SII) apply to a branch office of a foreign company?

No. A branch office is not a “company incorporated according to the Company Act” under Article 2 of the Statute for Industrial Innovation. Also, there is no withholding tax when a branch repatriates earnings to its foreign head office, as compared to the 20% withholding tax when a subsidiary does.

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