![]() ![]() "Collecting the share sale tax will make the market's liquidity recede back 10 years," said Mr Paiboon. Instead of the levy imposition, the Thai stock market needs better support from the government, said the analysts, particularly for foreign investors to take part in the technology and innovation sectors. The trading of our shares (Shares) on the Singapore Exchange Securities Trading Limited (the SGX-ST) is subject to a stock transaction tax (STT) of. Last year the collection of dividend tax reportedly amounted to 60 billion baht. ![]() Unlike other stock markets, Thailand has double taxation on equities. "Singapore is no doubt our key competitor, as it is a developed market and a financial hub for funds in Southeast Asia." "The share sale tax will add 5.5 basis points to the current 3-basis-point fee. Singapore-Germany tax treaty May 2021 In brief The protocol amending the 2004 tax treaty between Singapore and Germany entered into force on 29 March 2021 and its provisions will generally take effect from 1 January 2022. Legal acts registered with the Chamber of Commerce. Registration tax which applies to documents. Paiboon Nalinthrangkurn, chairman of the Investment Analysts Association, said higher trading costs will incentivise foreign investors to turn to other stock markets, such as Singapore's bourse, which does not charge a share sale tax nor a dividend tax to investors. The financial transaction will be subject to a tax rate of 0.4. If levied at 0.11%, the tax would generate 15-16 billion baht in revenue per year for the state coffers. If more traders leave the market, companies will feel less inclined to join, as the market size will certainly shrink, said Mr Niwet.Īt least 50% of investment in the Thai stock market comes from foreign investors, and inexpensive fees is the market's major selling point for this group, he said.Īccording to the Revenue Department, the tax will add 0.22% in costs for stock investors. The tax will add trading costs to investors and reduce their interest in trading on the market, he said. ![]() This appeal, however, is diminishing as a result of the planned tax," leading investor Niwet Hemwachirawarakorn told a forum hosted by the Federation of Thai Capital Market Organizations (Fetco) yesterday. "The Thai stock market has an advantage over other markets in the region in terms of high liquidity. The tax on securities trades, which comes into effect next year, could drive foreign traders away as the levy lowers the liquidity of the Thai market, they said. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for CBF customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.An investor monitors share price movements at Asia Plus Securities' headquarters on Sathon Road. (Photo: Pornprom Satrabhaya)Įnforcement of the financial transaction tax could give foreign investors a reason to exit the Thai stock exchange and focus on other bourses, according to investment analysts. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. The list of companies subject to FTT for transactions realised as from 1 January 2017 can be found on the FTA’s website.įor further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer. You may access the new Articles of the Law (in French) on the Assemblée Nationale’s website (please refer to Article 25 for the new FTT rate and to Article 62 for the taxation of intraday transactions). The Law is now pending publication in the Official Journal. An increase of the FTT rate from 0.2% to 0.3% effective 1 January 2017 (Article 25 of the Law).Īs per discussions between The French Financial Markets Association (l’AMAFI - L'Association française des marchés financiers) and the French Tax Authorities (FTA), the new 0.3% tax rate will apply to transactions settled as of 1 January 2017.An extension of the scope of the French FTT to include intraday transactions for acquisitions realised as of 1 January 2018 (Article 62 of the Law) and.Backgroundĭuring the last reading of the French Financial Bill for 2017, The French National Assembly adopted the following amendments to the French FTT: While the taxation of intraday transactions has been postponed to 1 January 2018. Clearstream Banking 1 would like to inform customers that the French National Assembly has adopted an increase of the Financial Transaction Tax (FTT) rate from 0.2% to 0.3% effective
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