The Land and Property Tax Act is intended to make taxation fairer and increase land utilisation but the new regime will require further revision and greater clarity before becoming effective on Jan 1,2010.
According to the Fiscal Policy Office (FPO), the current property tax system is flawed.
For example, the building and land tax is calculated from annual rents which depends on contracts between tenants and landlords, who often register lower rents than they collect to avoid tax.
The current building and land tax rate is also 12.5% of annual rent - or one-and-a-half-month's rent - which is too high and tempts landlords to avoid paying tax.
For a building used by a landlord for his own commercial purpose or not for rent, the local authority estimates an annual charge.
Meanwhile, the local development tax rate varies according to the value of the land, with higher-priced land being taxed at a lower rate. The tax is calculated from land prices in 1978-81, which are outdated and result in a low tax rate.
Tax is also collected on very few land plots due to exemptions and deductions for land of between 50 square wah and five rai on which owners reside.
"Land taxation under the new act will be fair for everyone. The act will increase the efficiency of land utilisation,"said Jaroonsri Chyehard, director of the Local Tax and Non-tax Policy Division at the Tax Policy Bureau of the FPO.
The tax base will be the total value of land and buildings, including other property adjoining to that land or building,according to the FPO. The tax base will be cut by 1% a year, up to a maximum reduction of 10%, for property maintenance.
Deductions and exemptions will also be given for damage to land and buildings from natural disasters such as floods.Tax exemptions will apply for land and buildings for residential and agricultural use, the value of which must not exceed a legal limit.
The tax base for land without buildings will be calculated from the Treasury De-partment's land appraisals. For land and buildings, the tax base will be calculated from appraised land prices and appraised building prices.
Three tax rates will be introduced: a general rate for land and buildings of not more than 0.5% of the tax base; a residential rate for non-commercial land and building of not more than 0.1%;and an agricultural rate of not more than 0.05%.
Within these limits, local administrations have the authority to set the rate and to add new categories of rate.
On abandoned land, the tax will be charged in the first three years at up to 0.5% of the tax base. But if that land remains unused, from the fourth year onwards the tax rate will double every three years to a maximum of 2% of the tax base.
"This aims to prevent land stockpiling.It will be a measure to encourage landlords with many land plots to rent them out or sell. Land plot prices may become lower," said Ms Jaroonsri.
She suggested landlords start surveying their own assets and consider how to use assets to generate worthwhile returns.
"They [landlords] should seek ways to benefit from the empty plots on which they will pay higher tax than before.They might be used to hold fresh markets or whatever makes them worth the tax."
Three groups who never paid or underpaid Land and Building Tax would be affected by the new act, she said. These are current taxpayers paying less than the rate they should; owners of land plots sized between 50 square wah and five rai, the minimum size for paying tax under the current act; and landlords who push the tax burden onto their tenants.
Tax should be paid by April of each year. Taxpayers may pay by installments set by the ministry but if they fail to pay within the required period, they lose the right to pay by installments and must pay an additional 1% a month of the unpaid amount.
But taxpayers have the right to appeal their rate to the local administration within 30 days.
"There will be a grace period of two years to allow agencies involved to prepare for the new act," she said.
The Lands Department will make a nationwide digital map to match land title deeds and land price appraisals being done by the Treasury Department.So far, the department has appraised only 6 million out of 31 million plots.
At the same time, local administrations will survey lands and buildings in their areas, to establish each taxpayer's lands and buildings and calculate their tax liabilities.
To reduce the burden on those who have never paid Building and Land Tax or Local Development Tax - most of whom are homeowners - the rate will be 50% of the normal rate in the first year,75% in the second year and the full amount from the third year.
Taxpayers who currently pay Building and Land Tax and Local Development Tax will pay a higher rate after the new act comes into effect, the rate will be 75% of the tax in the first year,50% in the second year and the full amount from the third year onward.
"We are concerned about duplications of taxable areas," said Somchao Tanthathoedtham, managing director of the listed developer NC Housing Plc.
"For example, homeowners in a gated development normally pay a common area fee, part of which is used for facilities maintenance. Under the new tax act,they will also pay property tax to local administrative organisations that are not responsible for facilities in their village."
Atip Bijanonda, president of the Thai Condominium Association, said there were likely to be some overlaps between the new tax system and other taxes,which might increase burdens on asset owners.
"The transfer fee should be a fixed rate, not percentage-based," he said.
He added that clarity is needed for tax deduction and tax payment systems,which should have a convenient payment system for taxpayers, especially those owning many plots of land countrywide.
Appraisals of building values by local administrative official should be fair to everyone, he added.
Supalakana Pinitpuvadol, a law professor at Chulalongkorn University, has expressed concern that some terms in the new act - such as "land","building"or "other property"- should be adequately defined for general understanding and clear legislative interpretation.
For instance, regulations that help reduce the tax burden should be clear.Depreciation should be for buildings but not for land - which generally ap-preciates - and maintenance fees should be based on actual payments or an estimation.
The FPO will revise tax structures and examine the duplication of other property taxes such as property transfer fees and special business tax, said Ms Jaroonsri.It will also consider the case of gated housing villages where homeowners are responsible for utilities.
"The Land and Property Tax Act will improve the property ownership tax system, promote decentralising to local administrative organisations, reduce hoarding of land for speculation and generate more income for local administrative organisations."
Last year, local administrations generated an income of 35.22 billion baht but received 193.67 billion baht from the government and a subsidy of 147.84 billion baht.
"With the taxation system under the new act, local administrative organisations' revenue will increase to 90 billion baht from the current 20 billion baht they gain from property-related tax,"she added.
Sopon Pornchokchai, president of the Thai Appraisal Foundation, said revenue would be collected directly for local development under the new act and could be used for utilities and education, which in turn would increase the value of property in that area.
"The more tax a local authority can collect, the more development it will make," he said."It's like the more you give [pay tax], the more you get [higher property value]."
Even a large landlord owning a property worth millions of baht is likely to benefit from higher land value if the taxes he pays fund local development.
"There will be no chance of leakage or corruption by big politicians or government officials as tax collection and spending are within local areas and will not enter the central government's coffers," he said.
Saturday, October 31, 2009
RBS eyes plans to offload branches
The Royal Bank of Scotland (RBS) is considering a British government-backed plan to sell of more than 300 high street branches to satisfy EU competition authorities, the Financial Times said yesterday.
RBS, which is 70 per cent owned by the taxpayer after it was saved from collapse by a government bail-out last year, told the newspaper it was "working towards a solution with the European Commission".
Officials close to the negotiations said the plan was well advanced. The plan hinges on the EU's concerns that RBS has a 30-per-cent share of the small business banking market in Britian. Brussels wants to see RBS's operations in the sector reduced by 10 per cent.
The Scottish bank could achieve this by disposing of its 312 RBS-branded branches in England and Wales, which mostly serve its one million small corporate customers.
RBS, which is 70 per cent owned by the taxpayer after it was saved from collapse by a government bail-out last year, told the newspaper it was "working towards a solution with the European Commission".
Officials close to the negotiations said the plan was well advanced. The plan hinges on the EU's concerns that RBS has a 30-per-cent share of the small business banking market in Britian. Brussels wants to see RBS's operations in the sector reduced by 10 per cent.
The Scottish bank could achieve this by disposing of its 312 RBS-branded branches in England and Wales, which mostly serve its one million small corporate customers.
CALIFORNIA'S GOVERNOR TO THE RESCUE
Terminator-turned-governor Arnold Schwarzenegger, who has played the hero in many movies, will now try to rescue California from its dire financial straits.
Schwarzenegger will soon seel Build America Bonds to individuals to raise money.
California, suffering from record unmployment and the lowest credit rating of any state, plans to borrow US$4.5 billion (Bt151 billion) this week for schools, parks and hospitals after municipal bond yields fell to a 42-year low.
Bloomberg reports worth of federally subsidised, taxable will sell $3.2 billion worth of federally subsidised, taxable Build America Bonds and $1.3 billion worth of tax-exempt debt, the biggest municipal financing of the week. While yields on 30-year Build America securities that California sold in April fell to 6.68 percent last Thursday, from 7.43 per cent when they were sold, the rate remains 0.53-percent-age-point more than the average US corporate note due in more than 15 years, Bank of America's Merrill Lynch & Co indexes show.
California is reaping the benefits of the highest returns on tax-exempt debt since 2000 even as it projects a deficit of $38 billion over the next three years. Pacific Investment Management's Bill Gross said the state might lack the "discipline" to plug the gap.
"I'm not a strong buyer at these levels," said Ken Naehu, who oversees $2.5 billion in bods as head of fixed income at Bel Air Investment Advisers in Los Angeles.
"Investors should know that the issues and problems with the state's finances have not been resolved."
California's record 12.2-per-cent unemployment rate in August compared with 7.6 per cent in the same period last year and 5.5 per cent two years earlier. The Labour Department last week reported the nation's unemployment rate reached 9.8 per cent last month.
Tax revenue has missed Governor Schwarzenegger's Budget Office projections, falling 1.3 per cent from forecasts when the state legislature approved the present spending plan totalling about $85 billion in July.
California will offer Build America Bonds to individuals today and tomorrow and to institutions on Thursday, said Treasury spokesman Tom Dresslar. The last time it sold long-term securities was April's $6.85 - billion deal.
The state was among the first to sell Build America Bonds, which are taxable securities.
Schwarzenegger will soon seel Build America Bonds to individuals to raise money.
California, suffering from record unmployment and the lowest credit rating of any state, plans to borrow US$4.5 billion (Bt151 billion) this week for schools, parks and hospitals after municipal bond yields fell to a 42-year low.
Bloomberg reports worth of federally subsidised, taxable will sell $3.2 billion worth of federally subsidised, taxable Build America Bonds and $1.3 billion worth of tax-exempt debt, the biggest municipal financing of the week. While yields on 30-year Build America securities that California sold in April fell to 6.68 percent last Thursday, from 7.43 per cent when they were sold, the rate remains 0.53-percent-age-point more than the average US corporate note due in more than 15 years, Bank of America's Merrill Lynch & Co indexes show.
California is reaping the benefits of the highest returns on tax-exempt debt since 2000 even as it projects a deficit of $38 billion over the next three years. Pacific Investment Management's Bill Gross said the state might lack the "discipline" to plug the gap.
"I'm not a strong buyer at these levels," said Ken Naehu, who oversees $2.5 billion in bods as head of fixed income at Bel Air Investment Advisers in Los Angeles.
"Investors should know that the issues and problems with the state's finances have not been resolved."
California's record 12.2-per-cent unemployment rate in August compared with 7.6 per cent in the same period last year and 5.5 per cent two years earlier. The Labour Department last week reported the nation's unemployment rate reached 9.8 per cent last month.
Tax revenue has missed Governor Schwarzenegger's Budget Office projections, falling 1.3 per cent from forecasts when the state legislature approved the present spending plan totalling about $85 billion in July.
California will offer Build America Bonds to individuals today and tomorrow and to institutions on Thursday, said Treasury spokesman Tom Dresslar. The last time it sold long-term securities was April's $6.85 - billion deal.
The state was among the first to sell Build America Bonds, which are taxable securities.
Tuesday, October 20, 2009
PRIVATE SECTOR WANTS RAYONG A SPECIAL ZONE
The private sector today will propose the government turn Rayong province into a special economic zone to improve budget allocation for its industrialised areas, including Map Ta Phut, as well as the payment of an environment tax to assure further industrial development.
The first proposal was agreed upon yesterday by the Joint Privaate Committee on Commerce, Industries and Banking.
At the meeting, Suthi Atchasai, coordinator of a public network on the Eastern Seaboard, which is one of the main forces blocking further industrial development in the province, said there must be a clear definition of what constitutes a special economic zone.
"Every party, including local communities, should be able to participate in the discussion of this issue. Importantly, this proposal must not have a hidden agenda benefiting any single party and must clearly keep in line with the Constitution's Article 67", he said.
PTT Aromatics and Refining president and CEO Chainoi Puankosoom said the proposal would allow non-Rayong residents working in the area to register as provincial citizens. Then more budget would go to the province, improving the standard of living as a whole.
"We believe people today are not so concerned about the polluted environment, but they are worried more about their low standard of living, such as poor management of waste treatment or utilities," he said.
Federation of Thai Industries chairman Santi Vilassakdanont said the proposal would be tabled at the Public-Private Partnership meeting today.
Meanwhile, the private sector will also propose collection of an environment tax to its government counterparts, on condition that the money generated go to the areas where plants are located.
"We want to express that we as concerned about the environment as other parties. We are willing to follow the laws and regulations, as well as set up a Bt17-billion fund to improve the environment from 2007-11," he said.
He said the private sector would reiterate to the government that it fully supported the idea of an "eco-industrial town" as a long-term goal out of concern from local and foreign investors that industrial development in Thailand could be discontinued.
"If this conflict continues, it's a great risk. So far, I have not heard about firms moving their investment to other countries, but it may happen soon," said Japanese Chamber of Commerce vice chairman Fukujiro Yamabe.
He said it was difficult for Japanese companies in Thailand to explain the court's recent injunction against 76 industrial projects to parent companies. Therefore, the government should speed up resolution of the problem, in order to maintain their confidence in running businesses here.
"It will be too long for investors, should this issue be prolonged until next year," he added.
Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, said investors fully understood the importance of environmemtal protection. He believes Thailand has good environmental-protection laws that meet world-class tandards and that most of the suspended projects could pass those standards.
Therefore, the government should take the shorted time to move the situation from the current murky state, in order to restore investor confidence.
"We would like to envourage the government to allocate more money to local communities, in order to improve people's quality of life," von der Luehe added.
Notably, the conflict has delayed some refiners' investment plans to improve their oil quality to meet Euro IV emission standards.
The first proposal was agreed upon yesterday by the Joint Privaate Committee on Commerce, Industries and Banking.
At the meeting, Suthi Atchasai, coordinator of a public network on the Eastern Seaboard, which is one of the main forces blocking further industrial development in the province, said there must be a clear definition of what constitutes a special economic zone.
"Every party, including local communities, should be able to participate in the discussion of this issue. Importantly, this proposal must not have a hidden agenda benefiting any single party and must clearly keep in line with the Constitution's Article 67", he said.
PTT Aromatics and Refining president and CEO Chainoi Puankosoom said the proposal would allow non-Rayong residents working in the area to register as provincial citizens. Then more budget would go to the province, improving the standard of living as a whole.
"We believe people today are not so concerned about the polluted environment, but they are worried more about their low standard of living, such as poor management of waste treatment or utilities," he said.
Federation of Thai Industries chairman Santi Vilassakdanont said the proposal would be tabled at the Public-Private Partnership meeting today.
Meanwhile, the private sector will also propose collection of an environment tax to its government counterparts, on condition that the money generated go to the areas where plants are located.
"We want to express that we as concerned about the environment as other parties. We are willing to follow the laws and regulations, as well as set up a Bt17-billion fund to improve the environment from 2007-11," he said.
He said the private sector would reiterate to the government that it fully supported the idea of an "eco-industrial town" as a long-term goal out of concern from local and foreign investors that industrial development in Thailand could be discontinued.
"If this conflict continues, it's a great risk. So far, I have not heard about firms moving their investment to other countries, but it may happen soon," said Japanese Chamber of Commerce vice chairman Fukujiro Yamabe.
He said it was difficult for Japanese companies in Thailand to explain the court's recent injunction against 76 industrial projects to parent companies. Therefore, the government should speed up resolution of the problem, in order to maintain their confidence in running businesses here.
"It will be too long for investors, should this issue be prolonged until next year," he added.
Nandor von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, said investors fully understood the importance of environmemtal protection. He believes Thailand has good environmental-protection laws that meet world-class tandards and that most of the suspended projects could pass those standards.
Therefore, the government should take the shorted time to move the situation from the current murky state, in order to restore investor confidence.
"We would like to envourage the government to allocate more money to local communities, in order to improve people's quality of life," von der Luehe added.
Notably, the conflict has delayed some refiners' investment plans to improve their oil quality to meet Euro IV emission standards.
Saturday, October 17, 2009
NEW EXCISE CHIEF VOWS WIDESPREAD TAX REFORM
The new head of the Excise Department has pledged to reform liquor, beer, oil and automobile taxes in response to complaints by producers and independent academics of obscure rules and unfair treatment among rivals.
Areepong Bhoochaoom, newly appointed director-general of the Excise Department, yesterday said he would give priority to solving issues related to tax collection on alcohol beverages, oil and cars. A committee has been set up to find solutions within two months, he said.
Beer and liquor producers have long complained that the department has not treated them equally, accusing the department of favour one giant producer resulting in lack of a level playing field.
Nipon Poapongsakorn, president of the Thailand Research Development Institution, an independent think-tank, also previously criticised the department and the Finance Ministry for their "unjust" excise tax system. Nipon currently leads a research team studying the whole structure of excise taxes.
Some experts also suggested the tax rate should be based on alcohol content rather price.
Areepong said the department might change the way its calculated car taxes from a rate based on factory prices to retail prices.
The department may also require softdrink manufacturers and oil traders to provide online information in the same way that alcohol producers send online information about their production to the department.
The department will make clear rules as to who must pay nightclub services tax, he pledged.
It will also launch a tax reform master plan this year, Areepong said.
The reform will aim to make taxes simple and justice and will not cause multinational firms to relocate their factories out of Thailand, he said.
In the short run, the department will not increase tax rates, but will improve tax collection efficiency, he added.
The agency plans to collect excise tax worth Bt291 billion for the current fiscal year (October 2009 to September 2010).
Areepong wants to beat the target by Bt20 to Bt30 billion.
The department is under pressure to collect more taxes as most tariffs under the Asean free trade agreement will be cut to zero next year.
Areepong Bhoochaoom, newly appointed director-general of the Excise Department, yesterday said he would give priority to solving issues related to tax collection on alcohol beverages, oil and cars. A committee has been set up to find solutions within two months, he said.
Beer and liquor producers have long complained that the department has not treated them equally, accusing the department of favour one giant producer resulting in lack of a level playing field.
Nipon Poapongsakorn, president of the Thailand Research Development Institution, an independent think-tank, also previously criticised the department and the Finance Ministry for their "unjust" excise tax system. Nipon currently leads a research team studying the whole structure of excise taxes.
Some experts also suggested the tax rate should be based on alcohol content rather price.
Areepong said the department might change the way its calculated car taxes from a rate based on factory prices to retail prices.
The department may also require softdrink manufacturers and oil traders to provide online information in the same way that alcohol producers send online information about their production to the department.
The department will make clear rules as to who must pay nightclub services tax, he pledged.
It will also launch a tax reform master plan this year, Areepong said.
The reform will aim to make taxes simple and justice and will not cause multinational firms to relocate their factories out of Thailand, he said.
In the short run, the department will not increase tax rates, but will improve tax collection efficiency, he added.
The agency plans to collect excise tax worth Bt291 billion for the current fiscal year (October 2009 to September 2010).
Areepong wants to beat the target by Bt20 to Bt30 billion.
The department is under pressure to collect more taxes as most tariffs under the Asean free trade agreement will be cut to zero next year.
Tuesday, October 13, 2009
BOT URGED TO FACILITATE MONEY FLOW FOR MULTINATIONALS
The Finance Ministry will ask the Bank of Thailand (BOT) to loosen regulations for multinational firms to enable them to bring money into the country or repatriate it in a bid to promote the country as their regional headquarters.
Deputy Finance Minister Pradit Phataraprasit said that he would consult with the central bank later.
Winai Wittawatkaravet, directorgeneral of the Revenue Department, said the department would not offer more tax incentives but would relax tax regulations for large firms.
Earlier, the ministry had cut corporate income tax to 10 per cent from the regular 30 per cent for companies establishing regional operating headquarters in Thailand.
Finance Minister Korn Chatikavanij yesterday said he will today submit to the Cabinet a proposal to cut the excise tax rate on Thai traditional spas to zero from 10 per cent.
"I believe the Cabinet will agree to support the tourism industry," he said. Currently the Excise Department collects tax from about 1,000 spa operators but tax collection is less than Bt1 billion annually, said Korn.
The spa business has long been asking for a tax cut. Spa businesses operating in hospitals or temples would benefit from the rate reduction.
However, massage parlours will still be taxed 10 per cent, said Korn.
Meanwhile, Winai said his department will keep a close eye on construction companies to prevent them from dodging tax.
He warned that those who evade tax would be punished and accounting firms that help them to avoid tax payment would also be penalised.
He said the department had found that some accounting firms had helped some construction firms to evade tax by making a false report report on expenditures due to the cost of oil.
"We will not just look at receipts but we will dig into the reasonable cost of oil in the construction businesses," he said.
Finance Minister Korn Chatikavanij yesterday said he will today submit to the Cabinet a proposal to cut the excise tax rate on Thai traditional spas to zero from 10 per cent.
Deputy Finance Minister Pradit Phataraprasit said that he would consult with the central bank later.
Winai Wittawatkaravet, directorgeneral of the Revenue Department, said the department would not offer more tax incentives but would relax tax regulations for large firms.
Earlier, the ministry had cut corporate income tax to 10 per cent from the regular 30 per cent for companies establishing regional operating headquarters in Thailand.
Finance Minister Korn Chatikavanij yesterday said he will today submit to the Cabinet a proposal to cut the excise tax rate on Thai traditional spas to zero from 10 per cent.
"I believe the Cabinet will agree to support the tourism industry," he said. Currently the Excise Department collects tax from about 1,000 spa operators but tax collection is less than Bt1 billion annually, said Korn.
The spa business has long been asking for a tax cut. Spa businesses operating in hospitals or temples would benefit from the rate reduction.
However, massage parlours will still be taxed 10 per cent, said Korn.
Meanwhile, Winai said his department will keep a close eye on construction companies to prevent them from dodging tax.
He warned that those who evade tax would be punished and accounting firms that help them to avoid tax payment would also be penalised.
He said the department had found that some accounting firms had helped some construction firms to evade tax by making a false report report on expenditures due to the cost of oil.
"We will not just look at receipts but we will dig into the reasonable cost of oil in the construction businesses," he said.
Finance Minister Korn Chatikavanij yesterday said he will today submit to the Cabinet a proposal to cut the excise tax rate on Thai traditional spas to zero from 10 per cent.
Monday, October 12, 2009
Alcohol tax revamp urged
Excise taxes for alcoholic beverages should be overhauled to be strictly based on alcoholic content, according to Satit Rungkasiri, director-general of the Fiscal Policy Office.
Shifting tax calculations to be based on degree rather than quantity is in keeping with the idea that beverages with higher alcoholic content should pay higher tax, considering the higher potential cost to public health and society.
Mr Satit also said Thailand was unique in charging excise taxes for beers based on a three-category system: premium,standard and economy."No other country uses the system we use for beers. It only introduces complications in calculating taxes."
But past efforts to overhaul the tax structure for beer, wine, liquors and spirits have mostly failed, in part to heavy lobbying by domestic producers.
Excise taxes for beer are currently calculated as 55% of the ex-factory price or 100 baht per litre-equivalent of 100%alcohol, whichever is higher. In general,charging based on alcoholic content will bring the government more money.
The three-category structure is complicated as each has its own reference for ex-factory prices, with economy the lowest and premium the highest. This is despite the fact that production costs for beer differ relatively little.
Past efforts to link tax rates to alcohol content have also been impeded by government policies to assist community producers of white spirits, which generally have more alcohol than imports.
Shifting tax calculations to be based on degree rather than quantity is in keeping with the idea that beverages with higher alcoholic content should pay higher tax, considering the higher potential cost to public health and society.
Mr Satit also said Thailand was unique in charging excise taxes for beers based on a three-category system: premium,standard and economy."No other country uses the system we use for beers. It only introduces complications in calculating taxes."
But past efforts to overhaul the tax structure for beer, wine, liquors and spirits have mostly failed, in part to heavy lobbying by domestic producers.
Excise taxes for beer are currently calculated as 55% of the ex-factory price or 100 baht per litre-equivalent of 100%alcohol, whichever is higher. In general,charging based on alcoholic content will bring the government more money.
The three-category structure is complicated as each has its own reference for ex-factory prices, with economy the lowest and premium the highest. This is despite the fact that production costs for beer differ relatively little.
Past efforts to link tax rates to alcohol content have also been impeded by government policies to assist community producers of white spirits, which generally have more alcohol than imports.
Sunday, October 11, 2009
TAX INCENTIVES MULLED FOR FOREIGN EXPERTS
The Finance Ministry is considering whether to offer tax incentives to attract foreign specialists to work in Thailand, as part of an attempt to promote value-added industries and services.
In order to promote financialmarket development, tax incentives will be also given to banks and insurance firms that merge.
Satit Rungkasiri, newly appointed director-general of the Fiscal Policy Office, yesterday said he had assigned tax officials to identify incentives to lure highly skilled foreign workers to create know-how in the Kingdom.
This is one of several tasks he outlined as the new head of the office.
"If we can invite 10,000 specialists from abroad, they may be able to make a [more] significant contribution to the economy than a million low-skilled labourers imported from neighbouring countries," said Satit.
He said the office would work with other government agencies such as the Interior Ministry and Foreign Ministry to facilitate such an initiative.
Foreign workers often complain about the difficulty of obtaining work permits, he added.
MERGERS AND ACQUISITIONS
Tax incentives will cover research and development activities by both local citiznes and foreigners, he said.
The Finance Ministry is considering tax incentives for mergers and acquisitions among insurance firms and banks, as part of capital-market development, he said.
M&A activity currently faces a tax disincetive, in that the reserves of a bank or insurance firm are counted as income and the new post-M&A entity to pay tax on this amount.
The ministry is planning to eliminate this problem, he said.
It will also consolidate fiscal policies by creating a new body chaired by the finance minister to oversee local and central government expenditures, revenues, activities of off-budget funds as well as public-private partnership spending.
The move is aimed at creating greater transparency and prudence in the fical system. The fiscal bill will soon be submitted to the Cabinet for approval, Satit said.
In addition, Finance Minister Korn Chatikavanij has reportedly signed the draft law on the establishment of a national pension fund, which has been listed for Cabinet consideration.
In order to promote financialmarket development, tax incentives will be also given to banks and insurance firms that merge.
Satit Rungkasiri, newly appointed director-general of the Fiscal Policy Office, yesterday said he had assigned tax officials to identify incentives to lure highly skilled foreign workers to create know-how in the Kingdom.
This is one of several tasks he outlined as the new head of the office.
"If we can invite 10,000 specialists from abroad, they may be able to make a [more] significant contribution to the economy than a million low-skilled labourers imported from neighbouring countries," said Satit.
He said the office would work with other government agencies such as the Interior Ministry and Foreign Ministry to facilitate such an initiative.
Foreign workers often complain about the difficulty of obtaining work permits, he added.
MERGERS AND ACQUISITIONS
Tax incentives will cover research and development activities by both local citiznes and foreigners, he said.
The Finance Ministry is considering tax incentives for mergers and acquisitions among insurance firms and banks, as part of capital-market development, he said.
M&A activity currently faces a tax disincetive, in that the reserves of a bank or insurance firm are counted as income and the new post-M&A entity to pay tax on this amount.
The ministry is planning to eliminate this problem, he said.
It will also consolidate fiscal policies by creating a new body chaired by the finance minister to oversee local and central government expenditures, revenues, activities of off-budget funds as well as public-private partnership spending.
The move is aimed at creating greater transparency and prudence in the fical system. The fiscal bill will soon be submitted to the Cabinet for approval, Satit said.
In addition, Finance Minister Korn Chatikavanij has reportedly signed the draft law on the establishment of a national pension fund, which has been listed for Cabinet consideration.
Subscribe to:
Posts (Atom)