Proposed tax exemption package in Thailand

The Thai government took a major step yesterday (March 4) to uplift the economy by approving a 42 billion baht of 1.32 billion US dollar tax-exemption package that will leave money both in corporate and individual pockets. In a months time, the government of Thailand will back it up with a longer-term economic- stimulus package targeting at benefiting people living in rural areas. The 42-billion baht tax savings approved by the Cabinet yesterday will be distributed to the firms listed in the Stock Exchange of Thailand (SET) and the Market for Alternative Investment (MAI), the property market, salaried workers and both small and medium-sized enterprises (SME’s). Newly listed firms and Initial public offerings (IPOs) can also benefit from the package if they apply for listing over the next 12 months.

Because of the lower taxes, corporate earnings will definitely improve. There will also be a reduction in the transaction and mortgage-registration fees for land, houses, townhouses, office buildings and condominiums to 0.01 percent. According to the stock broker's report, earnings of the listed companies would have a projected rise 14 percent to 59 percent if they can receive an estimated tax savings of 4.3 percent on revenue.