TAX CORNER
Anti-Abuse measures in tax-Free reorganisation
- Published: 9 Oct 2012 at 00.00
- Newspaper section: Business
Modifying tax incentives as part of a series of transactions is similar to an effort to disentangle puzzle rings, leading to further complexity. The new tax rules, Royal Decree No.542 and Ministerial Regulation No.291, legislated two weeks ago are good examples.
Unfortunately, while most people thought the package came out to promote the long-yearned-for share-for-share swap, the rules limit the scope of the current tax incentive regime in an attempt to deal with abusive transactions.
There are two major types of corporate reorganisations in Thailand that are eligible for tax incentives: the statutory merger and the "entire business transfer" or EBT. (The "partial business transfer" is intentionally omitted from today's discussion, as it does not fall within the scope of the new legislation.)
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.
