Bangkok: The Stock Exchange of Thailand (SET) is preparing to propose to the Treasury the exemption of profit tax for listed companies that participate in the Jump+ project. Additionally, SET is advocating for the non-collection of retroactive taxes on mergers and acquisitions (M and A) to enhance global competitiveness. By mid-year, it is expected that 50 listed companies will join the Jump+ project, while the Treasury's decision on tax benefits for transferring Long-Term Funds (LTF) to ThaiESG is awaited.
According to Thai News Agency, Mr. Atsadej Kongsiri, Director and Managing Director of SET, discussed with Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, several issues aimed at bolstering confidence in the highly volatile capital market. A key topic was the potential transfer of LTF funds to the Thai ESG fund, focusing on effective mechanisms to support ESG and build market confidence. Details on tax deduction benefits will be clarified by the Ministry of Finance, with SET seeking to maximize these benefits.
The Jump+ project, proposed by SET last year, aims to encourage listed companies to create value by supporting investor communication and business analysis. SET has engaged with the Ministry of Finance to offer tax incentives, allowing profits from short-term business plans to be tax-exempt. Furthermore, discussions on M and A aim to enhance company stability and global competitiveness, advocating against retroactive tax collection. This would address the issue of companies using second accounts to evade taxes, with increased transparency expected to motivate M and A and growth.
Currently, Jump+ remains voluntary, with SET anticipating at least 50 companies to join by mid-year. In the long term, SET hopes all listed companies will utilize this platform. Additionally, SET has introduced AI tools to enhance investor communication, capable of analyzing data and translating it into 16 languages, thereby strengthening the potential of smaller listed companies.
Mr. Asadet also highlighted ongoing discussions with the Securities and Exchange Commission (SEC) regarding the disclosure of information following frequent share pledging incidents. Both the SEC and SET are working on legal clarifications, emphasizing the importance of timely investor information.
He reiterated SET's commitment to clear and rapid information dissemination to support investment decisions, believing that with government measures to boost GDP growth to a target of 3.5 to 4.5%, the capital market's strength and stability can be restored. Mr. Atsadet expressed optimism about the future opportunities for Thailand's capital market to regain its former strength.