Newly-listed companies during 2001–2005 paid cumulative corporate taxes of THB55.15 billion.
During 2001– 2004, taxes paid by listed firms increased by 45% per year on average, while taxes paid by other juristic persons increased by only 16% on average.
“Higher taxes collected were a result of the tax privilege provided to listed companies on the SET and mai, enabling them to pay 25% and 20% corporate tax rates ,respectively, while non-listed firms usually paid 30%.
“This tax measure has attracted more listings. From September 2001 to Q1/2006, there were a total of 160 companies enjoying the tax privilege. 117 of them are listed on the SET, and another 43 are on the mai,” said Ms. Sopawadee.
More companies will enjoy tax privileges. There are 33 companies having applied to list: 21 to the SET, and another 12 to the mai. These firms must commence trading end-2006. To date, 11of them have been approved for listing (7 on the SET, 4 on the mai).
The CMOC Chairman also added that: “Actually, there are another 120 companies interested in obtaining the tax privilege, but unfortunately they cannot be listed during 2006. The tax privilege would help them reduce listing expenses.” From surveying 74 companies listed on the SET and mai from 2004 to August, 2005, it was found that they had an average of THB26 million in listing expenses, plus THB2 million expenses arising from corporate governance requirements. These included auditing expenses and audit committee payments, together with a THB0.5 million annual fee for the SET and Thailand Securities Depository Co., Ltd.
“The Listed Companies Association has tried to negotiate tax privilege approval. These companies deserve a lower rate as they already pay sufficient taxes. Furthermore, their tax payments have grown at a higher rate than non-listed firms. Therefore, the tax rate imposed on listed companies should gradually be decreased to a level that the establishments are willing to pay, and which will allow them to compete effectively in international markets.” Ms. Sopawadee concluded.