Asean Link capital gain tax to be waived
Thailand's Revenue Department has agreed to waive intra-regional stock transactions from capital gain tax, to draw investment to Asean stock exchanges which are being integrated under the Asean Link.
At present, investors in the Stock Exchange of Thailand are waived from such tax.
The Securities and Exchange Commission and the SET yesterday hailed the Revenue Department's decision, saying that that would put investment tax base in the Thai exchange and those in the Asean Link on par.
"The Finance Ministry has issued a ministerial regulation on capital gain tax waiver. This will erase tax discrepancy and inspire individual investors to invest in Asean-listed stocks," said SEC Secretary General Vorapol Socatiyanurak.
For dividend paid out by overseas-incorporated companies listed on the Stock Exchange of Thailand, Thai individual investors will be exempted from including the dividend into their annual taxable income. Such dividend remains subjected to 10 per cent witholding tax, though.
"The SEC, the SET and the Revenue Department have been discussing on tax hurdles to strengthen the regional linkage and attractiveness," he said.
