Stock Exchange Of Thailand: To Gain Tax Privileges Potential Listings Must Trade On Thai Bourse In 2006

The Stock Exchange of Thailand’s (SET) board resolved that companies that have met listing requirements and submitted their listing applications to the SET by December 31, 2005, must commence trading on the bourse by December 31, 2006 to enable them to reap the tax privileges being offered.

Tax privileges have been offered to listed companies since 2001 as part of the government’s policy to promote new listings. From the normal 30% corporate tax rate, new listings on the SET pay only 25% while those on the Market for Alternative Investment pay taxes of only 20%. These privileges will continue to be offered until December 31, 2005.

After discussions with the SET, the Revenue Department has decided that companies that have applied for listing by December 31, 2005 will remain eligible for the privileges even though they haven’t started trading in 2005. The SET was advised to clarify the specifics of both the tax privileges and the listing period for companies currently in the listing process.

The SET Board resolved that all companies that have submitted listing applications to the SET by December 31, 2005 must commence trading on the bourse by December 31, 2006, or they will lose their eligibility for the tax privileges.

The SET’s related rules and regulations will be amended in accordance with this promotional scheme and will then