Thailand Readies Tax Breaks For MAI Listings

by Mary Swire, Tax-News.com, Hong Kong

07 December 2010

Thailand’s Finance Minister, Korn Chatikavanij, has indicated that the government would be prepared to renew tax incentives for small and medium-sized enterprises (SMEs) looking to list on the country’s Market for Alternative Investment (MAI).

Before its expiry, the government had previously provided a reduced corporate income tax rate 10% below the usual 30% for SMEs that floated on the MAI. The new corporate income tax rate for the listing of SMEs, which could be instituted from March next year, could also be fixed at 20%.

It is not known whether the tax incentive will be offered for a fixed period, or will be granted permanently, but it will only be given to companies that have proper accounts, a prerequisite of listing on the MAI, and pay their taxes regularly.

While the previous tax incentive given for a MAI listing was said to have not been particularly successful, measured by the number of firms that took advantage of it to raise additional share capital, it is hoped that more businesses could now be attracted given the strength of the economy. It is believed that there are presently some 2,000 SMEs in Thailand that could meet the MAI listing requirements.

Recommended