On 9 October 2018, the Cabinet approved the repeal of the existing tax-incentivised regional/international headquarters regimes and their replacement with a single International Business Center (IBC) scheme. Repealed regimes are as follows:
- Regional Operating Headquarters (ROH I), as detailed under Royal Decree 405
- Regional Operating Headquarters (ROH II), as detailed under Royal Decree 508
- International Headquarters (IHQ) and Treasury Center (TC), as detailed under Royal Decree 586
- International Trading Center (ITC), as detailed under Royal Decree 587
Entities which have already been granted the incentives under ROH II, IHQ, TC and/or ITC regimes remain eligible for these tax incentives under the existing conditions until their status expires (so this may be for up to 15 years for an IHQ/ITC). Entities with ROH I status (which does not have a time limit), however, can only enjoy the incentives until the end of the accounting year 2020. The existing ROH or IHQ/TC entities may also choose to convert their status into IBC. No new applications for these schemes will be accepted and approved starting from 10 October 2018.
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