Securities firms, others ordered to report on off-market deals
The Securities and Exchange Commission has asked all securities firms, custodian banks, and Thai Securities Depository Co to report their customers' securities-transfer transactions outside the trading in the Stock Exchange of Thailand or Market for Alter
SEC secretary-general Vorapol Socatiyanurak said the Revenue Department had requested that these organisations submit to it regular reports on transfers of all securities (stocks, warrants, derivatives, voting and non-voting depository receipts) of their clients (mutual and individual funds included) outside the Thai bourse for tax-collection purposes in the format specified by the department.
As for share transfers outside the bourse by listed firms, it is the duty of the transferor or the transferee to pay the applicable tax as the case may be, details as follows:
1. The company initiating the securities transfer (transferor firm) for the client is responsible for reporting all such transactions to the Revenue Department.
2. Submit monthly reports to the Revenue Department within 15 days of the following month in MS-Excel file format, or in compact-disc format if the file size exceeds 10 megabytes via postage addressed to the Revenue Department centre for non-registered business monitoring.
3. Submit monthly reports to notify the Revenue Department accordingly even when there is no such transaction.
4. Submit reports for all cross-trade between mutual or individual funds.
Furthermore, for individual funds, the investor may be liable for tax arising from cross-trade transactions.
Hence the securities firm must inform the investor accordingly about the relevant tax-payment obligation to ensure clarity and understand about the applicable tax.
The SEC has asked the Revenue Department about tax payments related to the transfer of securities outside the bourse.
Should there be any additional information on this, the SEC will inform the securities firms accordingly, Vorapol said.
