The Ministry of Finance is expected to reduce personal and corporate income tax rates for qualifying individuals and businesses as part of its initiative to establish a financial hub aimed at attracting foreign investment.
According to Paopoom Rojanasakul, the caretaker deputy finance minister, three primary strategies to draw in foreign investment include policies for an entertainment complex, an aviation hub, and a financial hub.
The cabinet has given initial approval for the financial hub policy, and a committee has been formed to work out the specifics.
A draft law is currently being prepared and is anticipated to be completed within two to three months, he stated on the sidelines of the Thailand Focus 2024 seminar organized by the Stock Exchange of Thailand on Wednesday.
Mr. Paopoom mentioned that investment incentives for the hub will encompass both personal and corporate tax advantages, along with non-tax benefits, such as simplified entry into the country and employment benefits for those working within the hub.
He emphasized that to compete as a financial hub, attractive tax rates and a favorable ecosystem are essential.
He pointed out that many global financial hubs, like Singapore, offer compelling tax rates, citing Singapore’s corporate tax rate of 15%, in contrast to Thailand’s 20%.
To enhance the ecosystem for finance-related enterprises, Mr. Paopoom revealed that the ministry is drafting legislation to create the National Credit Guarantee Agency.
Although Thailand’s economic growth currently lags behind that of its neighbors, investors in the Thai stock market are focused on the country’s potential rather than its present circumstances, he noted.
“Regarding economic management policies, please await the new government’s policy statement for more detailed information. However, it is highly likely we will continue to build upon developments from the previous year,” stated Mr. Paopoom.
“Let’s not forget that the concepts and foundation of these projects are rooted in the Pheu Thai Party, which is leading the government.”
