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Thailand – Tax Relief For Dividends From Funds, Trade Exhibitions.

19 October, 2012

 

 
Recently, two new Royal Decrees have been issued under the Revenue Code as follows:

 

Royal Decree 544 was issued to promote the Infrastructure Mutual Fund established under the Securities and Exchange Act.
 
It includes: 
 
– Exemption of personal income tax to individual tax payers but not including unregistered partnerships and bodies of persons) for dividends received from the Infrastructure Mutual Fund established under the Securities and Exchange Laws for the period of 10 consecutive calendar years from the calendar year of establishing the Infrastructure Mutual Fund, provided that this shall be under the rules, 
procedures and conditions prescribed by the Director-General.

– Exemption of VAT, Specific Business Tax and Stamp Duty to:-
 
1. Owner of assets for tax base (for VAT), revenue (for SBT) and instruments (for Stamp Duty) occurring or made from the transfer of the following assets related to Infrastructure Projects to the Infrastructure Mutual Fund established under the Securities and Exchange Laws:
 
  • Transfer of tangible assets which under the contract, requires the Fund to return the transferred assets to the owner or to make further transfer of the assets to the government authorities.
  • Transfer of intangible assets which prohibits the Funds from transferring to other persons except in return to the owner.

2. The Infrastructure Mutual Fund established under the Securities and Exchange Laws for tax base (for VAT), revenue (for SBT) and instruments (for Stamp Duty) occurring or made from the transfer of assets to the owner or the government authorities according to the contract stated in (1) above.

 

The foregoing is provided and shall be under the rules, procedures and 
conditions prescribed by the Director-General.
 
Royal Decree No. 545 exemption of corporate income tax on income equal to the expense spent for lease of space, construction of exhibition space, insurance, freight, or goods transportation and equipment used in exhibitions in the country during 1 January 2012 to 30 June 2012 only if the certificate of participation issued by the government authority has been presented.
 

 
This article was supplied by KPMG. 

 

 

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