SPSE welcomes incentives in the 2018/2019 budget
July 3, 2018 12:20 am
The South Pacific Stock Exchange has welcomed the announcements regarding the tax incentive in the 2018/2019 national budget.
Exchange chief executive, Krishika Narayan says in particular its great news for companies anticipating to list on SPSE in terms of the exemption of taxes from income and capital gains derived in the process of listing.
Narayan says Government has proposed the Income Tax Act will be amended to grant exemption for any gain made by a resident person from the sale of any capital asset including shares where the company undergoes listing.
“Any consequential income, including the sale of shares derived in the process of listing whether it be through re-organization, restructure or amalgamation of a company is now exempted from income tax and capital gains tax for companies that undertake such actions for the purposes of listing on SPSE.”
Narayan says this incentive provides the much needed clarity and extension to the current incentive which was in place for the gains and income derived from the sale of shares only.
Additionally, the Income Tax Regulations will be amended to extend the current exemption which is applicable to the ‘income made from the gain of the sale of shares for the purpose of listing on the South Pacific Stock Exchange’ to include ‘any income’ in addition to gain made from the sale of shares.
This exemption will be extended to public companies.
Narayan adds with the continuation of various lucrative tax incentives such as 10% corporate tax rate, tax free dividends for shareholders, and exemption from capital gains tax derived from gain on sale of shares; this latest incentive echoes the commitment of the government towards pro-capital market policies.