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Introduction of International Business Center to replace existing ROH, IHQ, ITC and TC regimes

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 Repealed regimes are as follows: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.

Download the full details in the enclosed document courtesy of EY Corporate Services Limited:
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