On 9 January 2007, the Thai Finance Minister announced that foreign investors will be prohibited from holding more than 50% of shares or voting rights in companies under changes approved by the Cabinet on the same day.
The change affects companies which operate in industries which are considered important to national security, Thai culture or have an impact on natural resources. Foreign investors with more than a 50% shareholding are expected to reduce their take within a year, while foreign investors holding more than 50% of voting rights are given 2 years to comply with the new rules.
The government's panel of legal advisers are expected to work on the details of the law, in order for the law to take effect.
Tax incentive for new stock exchange listings extended
The Thai Finance Minister recently announced that the corporate tax incentives which were available from 2001 to 2006 will be extended to companies that list on the Stock Exchange of Thailand (SET) in 2007. Compared to non-listed companies which are subject to tax at 30%, these newly listed companies will enjoy a reduced tax rate of 25% for 3 years
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