TAX INCENTIVES MULLED FOR FOREIGN EXPERTS

       The Finance Ministry is considering whether to offer tax incentives to attract foreign specialists to work in Thailand, as part of an attempt to promote value-added industries and services.
       In order to promote financialmarket development, tax incentives will be also given to banks and insurance firms that merge.
       Satit Rungkasiri, newly appointed director-general of the Fiscal Policy Office, yesterday said he had assigned tax officials to identify incentives to lure highly skilled foreign workers to create know-how in the Kingdom.
       This is one of several tasks he outlined as the new head of the office.
       "If we can invite 10,000 specialists from abroad, they may be able to make a [more] significant contribution to the economy than a million low-skilled labourers imported from neighbouring countries," said Satit.
       He said the office would work with other government agencies such as the Interior Ministry and Foreign Ministry to facilitate such an initiative.
       Foreign workers often complain about the difficulty of obtaining work permits, he added.
       MERGERS AND ACQUISITIONS
       Tax incentives will cover research and development activities by both local citiznes and foreigners, he said.
       The Finance Ministry is considering tax incentives for mergers and acquisitions among insurance firms and banks, as part of capital-market development, he said.
       M&A activity currently faces a tax disincetive, in that the reserves of a bank or insurance firm are counted as income and the new post-M&A entity to pay tax on this amount.
       The ministry is planning to eliminate this problem, he said.
       It will also consolidate fiscal policies by creating a new body chaired by the finance minister to oversee local and central government expenditures, revenues, activities of off-budget funds as well as public-private partnership spending.
       The move is aimed at creating greater transparency and prudence in the fical system. The fiscal bill will soon be submitted to the Cabinet for approval, Satit said.
       In addition, Finance Minister Korn Chatikavanij has reportedly signed the draft law on the establishment of a national pension fund, which has been listed for Cabinet consideration.