SET listing tax breaks

Corporate tax will be reduced from 30% to 25% for new companies listing on the stock exchange, Sathit Limpongpan, director-general of the Fiscal Policy Office, said yesterday. Companies already listed would be allowed the reduction on their first 300-million-baht of gross profits, he said. Above that, 30% would apply.

The Finance Ministry would also allow long-term investors to deduct their stock investments from annual income tax payments. SmaIl- and medium-sized enterprises listed on the Market for Alternative Investment (MAl) would be allowed a 20% corporate tax rate for three years after the law was passed. SMEs which listed on the MAl in the last three years would be eligible. They could not acquire other companies’ assets with three-year retrospectivity, he said. New listings could not acquire other companies’ assets at all.

Investors in the stock market would be allowed to deduct their stock investment from their assessable incomes for annual income tax payment. Incentives would focus on small investors, who would have to hold investments for five years to fully benefit.

TPL News, May 03, 2001

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