The Ministry of Finance is likely to cut personal and corporate income tax rates for approved individuals and businesses as part of its financial hub initiative to attract foreign investment.
Policies for an entertainment complex, aviation hub and financial hub are three key strategies to entice foreign investment, said Paopoom Rojanasakul, the caretaker deputy finance minister.
The financial hub policy has been approved in principle by the cabinet, and a committee has been set up to consider the details.
A draft law is being prepared and is expected to be completed in two to three months, he said on the sidelines of the Thailand Focus 2024 seminar held by the Stock Exchange of Thailand on Wednesday.
Mr Paopoom said investment privileges for the hub would include both personal and corporate income tax benefits, as well as non-tax inducements, such as easier entry into the country and labour benefits for those working in the hub.
He said competition to become a financial hub must be driven by attractive tax rates and ecosystem advantages.
He cited many financial hubs around the world that offer attractive tax rates, such as Singapore, which has a corporate tax rate of 15%, compared with 20% in Thailand.
As part of efforts to improve the ecosystem for finance-related businesses, Mr Paopoom said the ministry is drafting a law to establish the National Credit Guarantee Agency.
Even though Thailand’s economic growth is lower than in neighbouring countries, investors in the Thai stock exchange are focused on the country’s potential rather than the current situation, he said.
“As for economic management policies, please wait for the new government’s policy statement for more accurate information. However, there is a high likelihood we will continue to pursue the developments from the past year,” said Mr Paopoom.
“Don’t forget, the ideas and DNA behind these projects belong to the Pheu Thai Party, which leads the government.”
